ASPEN GROUP — Capital/Financing Update 2007

Aug 26, 2007

==> picture [94 x 109] intentionally omitted <==

Aspen Group Limited ABN 50 004 160 927

Aspen Property Trust ARSN 104 807 767

Level 8, Septimus Roe Square 256 Adelaide Terrace, Perth Western Australia, 6000 Telephone: 08 9220 8400 Facsimile: 08 9220 8401

Email: homemail@aspengroup.com.au

ASX ANNOUNCEMENT 27 AUGUST 2007

ASPEN SECURES L’ORÉAL AS MAJOR TENANT FOR ST. KILDA ROAD PROPERTY

Aspen Group (ASX:APZ) is pleased to announce it has secured the world’s largest beauty company, L'Oréal as a major tenant for its office building at 564 St.Kilda Road, Melbourne.

L'Oréal Australia has committed to a 10 year lease for 4,278 sqm, representing 50% of the net lettable area of the building. L'Oréal is moving its Australian headquarters to the St Kilda Road site.

Aspen Group Managing Director Mr Del Borrello said “it is a tremendous achievement to have secured a multi-national tenant of the stature of L'Oréal who will also assume the buildings naming rights.”

The lease, which commences in March 2008, is a significant coup for the property with existing major tenant Hewlett Packard due to end their lease over this area in February 2008. Occupancy for the property will remain at 100%.

“This is an outstanding result for the Group, a reflection of the combined efforts of our national asset management team,” said Mr Del Borrello.

Following commencement of this lease the building will boast an impressive weighted average lease term in excess of 7 years adding further strength to the Group’s property portfolio.

-END-

For further information please contact:

Angelo Del Borrello Managing Director, Aspen Group Phone: (08) 9220 8400 Mobile: 0419 335 411

John McGlue Porter Novelli Phone: (08) 9386 1233 Mobile: 0417 926 915

Or visit www.aspengroup.com.au

Page 1 of 1