ELDERS LIMITED — Capital/Financing Update 2008

Oct 20, 2008

21 October 2008

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Company Announcements Office Australian Securities Exchange Limited

Buy-back not to proceed. On track for 25%+ EBIT Growth. Gearing remains 14%

Key Points

• Amcom shareholders have voted against the proposed buy-back of 99 million shares

• Futuris retains an 18.6% shareholding in Amcom

• 1st quarter performance is ahead of expectations and Amcom is on track to achieve at least 25% EBIT growth (excluding equity accounted earnings and non-recurring costs[1] ) for FY09

• The annualised recurring revenue base has grown to $45 million at the end of the 1st quarter FY09, up from $43 million at June 08

Selective buy-back of Futuris stake not to proceed

Amcom has today announced that shareholders have not approved the proposal to buy-back the remaining Futuris stake of 99 million shares at 19.7 cents per share. The Amcom board recognise the changed circumstances in global credit markets and equity market conditions that have occurred since the proposal was announced in early September.

This decision means that Amcom will not be required to take on the additional $20 million in debt and will retain its balance sheet strength and low gearing ratio of 14% and high interest cover.

Non-recurring costs[1] of circa $1.6 million after tax relating to the completed $28.9 million sell-down and cancelled $19.5 million buy back process have been incurred. An annual interest expense saving of $1.8 million will be generated as a result of not having to raise the additional debt.

Whilst the selective buy-back will not proceed, the sale of 170 million shares by Futuris to institutional and high net worth investors during September has resulted in a stronger share register for Amcom. The Futuris holding has reduced from 50.1% to 18.6%.

Guidance reaffirmed

Amcom has continued the positive momentum from FY08 into the 1st quarter of FY09. The Fibre Division is experiencing sustained strength in new sales leading to a higher level in the annualised recurring revenue base which has grown to $45 million at the end of the 1st quarter FY09, up from $43 million at June 08. New fibre sales have maintained record levels for the first quarter.

1: Non-recurring costs relate to the one-off costs associated with the completed $28.9 million institutional sell-down and the cancelled $19.5 million selective buy-back of the Futuris share holding in Amcom

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Based on its 1st quarter performance, Amcom has reaffirmed its guidance for its FY09 EBIT (excluding equity accounted earnings and non-recurring costs[1] ) to be at least a 25% increase to that recorded in FY08.

The Amcom balance sheet remains well capitalised with current net debt of $16m million representing a gearing ratio of approximately 14% and interest cover of circa. 14 times (EBITDA/interest)

Commenting on the outlook for Amcom, Chief Executive Officer, Mr Stein said:

“In the uncertain global market conditions, we retain a sound balance sheet and strong positive operational cash flows. We are continuing to see solid demand for our fibre based products and these continue to play an important role in driving Amcom’s future growth”

“We are well positioned to take advantage of the solid demand through our extensive network coverage, our innovative products and our excellent customer service.”

“We remain focused on delivering above average organic growth and creating long term value for our shareholders.”

Also as previously advised, Mr Wozniczka has today resigned as a Director of Amcom. Mr Wozniczka was a Director from February 2007 and was formerly CEO of Futuris Corporation Limited our former majority shareholder.

For further comment and information:

Clive Stein David Hinton Managing Director & CEO Chief Financial Officer Tel (08) 9244 6022 Tel (08) 9244 6031 Email clivestein@amcom.com.au Email davidhinton@amcom.com.au

About Amcom

Amcom Telecommunications Limited is an ASX listed company providing telecommunications services to corporate, government, SME, retail and other telco’s.

Amcom operates as two complementary divisions. The Fibre division provides high speed data links to clients through its own extensive fibre network covering the CBD and greater metropolitan areas of Perth, Adelaide and Darwin. Amcom also provides data centre and voice services to its business clients.

The Amnet division provides a comprehensive range of communications products focussed principally on Broadband services.

Amcom has established infrastructure, proven technology and a customer focussed product suite aimed at delivering sustainable equity returns.

www.amcom.com.au