CEDAR WOODS PROPERTIES LIMITED — Capital/Financing Update 2005

May 30, 2005

CEDAR WOODS PROPERTIES LIMITED ABN 47 009 259 087

Level 4, Zurich House, 66 Kings Park Road, West Perth Western Australia 6005

P.O. Box 788 West Perth 6872

Telephone: (08) 9480 1500 Facsimile: (08) 9480 1599

www.cedarwoods.com.au email@cedarwoods.com.au

May 31, 2005

Australian Stock Exchange Limited Exchange Centre, Level 4, 20 Bridge Street SYDNEY NSW 2000

Dear Sir / Madam,

ACQUISITION

Please find attached an announcement for release to the market.

Yours faithfully,

PSadlers

Paul Sadleir Managing Director

MEDIA RELEASE

CEDAR WOODS ACQUIRES FURTHER DEVELOPMENT LAND

31 MAY 2005

Cedar Woods Properties Limited continues to supplement its property portfolio, consistent with the Company's stated objective to acquire prospects that provide the potential to enhance earnings growth in the medium to longer term.

The Company has acquired an oceanfront development site south of Perth that is zoned for residential and commercial uses.

Planning and design for this site is well advanced, with development anticipated over the next $2-3$ years.

In addition to the above, the Company has entered into an option for the acquisition of a significant parcel of land in Perth's outer metropolitan suburbs. The Company aims to progress approvals on this parcel to enable development to commence in 3-5 years time.

Cedar Woods has acquired the above interests at a total cost of \$5m.

For further information please contact:

Paul Sadleir Managing Director CEDAR WOODS PROPERTIES LIMITED 08 9480 1500