CTI LOGISTICS LIMITED — Share Issue/Capital Change 2006

Nov 13, 2006

ABN 69 008 778 925

1 Drummond Place West Perth WA 6005

Postal Address PO Box 400 West Perth Western Australia 6872 Telephone (08) 9227 6333 Facsimile (08) 9227 8000 Email corporate@ctilogistics.com Web www.ctilogistics.com

14 November 2006

Australian Stock Exchange Limited

By Electronic Lodgement

The board of directors resolved today to seek shareholder approval to subdivide the Company's share capital on the basis that every one (1) fully paid ordinary share be subdivided into three (3) fully paid ordinary shares (the "Share Split").

The directors believe the Share Split will benefit shareholders by increasing the liquidity and affordability to retail investors of the Company's listed shares.

It is the Company's intention to maintain last year's aggregate annual dividend rate of 5 cents per share on the Company's new shares after the Share Split.

The board of directors further resolved that on the basis that shareholders approve the Share Split, the Company will ask shareholders to approve a share buy-back of up to 12.38% of the Company's issued fully paid ordinary shares. It is likely that after the proposed Share Split, some shareholders may want to reduce their shareholdings and the Company has proposed the buy-back to ensure that there is a ready purchaser for those shares.

The total number of fully paid ordinary shares proposed to be bought back after the Share Split amounts to 4,237,380 and the resultant number of shares on issue would be 30,000,000.

In accordance with Australian Stock Exchange Listing Rules, the Company has also today lodged an Appendix 3C - Announcement of Buy-Back.

Based on the first quarter's results, the directors believe that the results for the 6 months to 31 December 2006 should be between 20% and 25% up on last year's corresponding period. Providing market conditions continue, this increase is likely to be maintained for the full year.

Yours faithfully,

DAVID WATSON EXECUTIVE CHAIRMAN