BSA LIMITED — Capital/Financing Update 2007

Dec 3, 2007

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For Immediate Release

Monday 3 December 2007

General Manager The Company Announcements Office Australian Stock Exchange Limited PO Box H224 Australia Square Sydney NSW 1215

Dear Sir/Madam,

BSA Limited – Further Information received in relation to Trading Halt.

The directors of BSA Limited advise that a proposal has been received, a summary of which is in the attached letter from Hills Industries Limited. The board is considering the proposal from Hills and will respond at the earliest possible time, at which stage discussions will be held with ASX in relation to releasing the company from the trading halt.

If you have any queries, please do not hesitate to contact the writer.

For further information, please contact: -

Graham Seppelt 0419 035 297

On behalf of the Board

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Graham Seppelt Secretary

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Head Office: Unit 11, 79-99 St Hilliers Road Auburn NSW 2144 Phone: (02) 8748 2400 Fax: (02) 8748 2577 corporate@bsa.com.au

ABN 35 007 573 417

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HILLS MAKES CONDITIONAL PROPOSAL TO BSA

The Board of Hills Industries Limited announced today that it is in discussion with BSA Limited (“BSA”) regarding a non-binding proposal which if approved by BSA shareholders would result in Hills holding 50.1% of the equity in BSA.

Under the proposed transaction Hills would merge its existing Antenna & TV Systems Group (consisting of a number of long established businesses in Australia and New Zealand) with BSA in exchange for shares. The proposal contemplates that as a result of BSA undergoing a capital reduction and Hills subscribing for additional shares Hills would end up owning 50.1% of the equity in BSA.

A number of approvals will be required from the shareholders of BSA to conclude the transaction. All elements of the proposed transaction will need to be approved for any part to proceed.

If the proposed transaction proceeds, BSA will have revenues of around $375M per annum, with Hills bringing product opportunities in markets that have growth, in particular Fibre to the Home infrastructure, satellite delivery of Voice, Data and Telephony and a presence in the Audio Visual retail market.

Hills expects that negotiations regarding the proposed transaction will be concluded by 7 December 2007. Should those negotiations result in agreement being reached on a proposed transaction, Hills will announce further details.

J.H. HILL-LING CHAIRMAN 3 December 2007

Further information contact: DAVID SIMMONS MANAGING DIRECTOR Mobile: 0412 66 22 11