ENVIRONMENTAL GROUP LIMITED (THE) — Director's Dealing 2007

Sep 27, 2007

Rule 3.19A.2

Appendix 3Y

Change of Director's Interest Notice

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX's property and may be made public.

Introduced 30/9/2001.

Name of entity Environmental

ABN 89 000 013 427

We (the entity) give ASX the following information under listing rule 3.19A.2 and as agent for the director for the purposes of section 205G of the Corporations Act.

Name of Director	Dr Julian Higgs
Date of last notice	27 September 2006

Part 1 - Change of director's relevant interests in securities

In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust

Note: In the case of a company, interests which come within paragraph (i) of the definition of "notifiable interest of a director" should be disclosed in this part.

Direct or indirect interest	Direct
Nature of indirect interest (including registered holder) Note: Provide details of the circumstances giving rise to the relevant interest.
Date of change	21 September 2007
No. of securities held prior to change	2,351,601
Class	Ordinary Shares
Number acquired	1,669,255
Number disposed
Value/Consideration Note: If consideration is non-cash, provide details and estimated valuation	\$0.06 Cents share with per total consideration of \$100,155.30
No. of securities held after change	4,020,856
Nature of change Example: on-market trade, off-market trade, exercise of options, issue of securities under dividend reinvestment plan, participation in buy-back	Rights issue

• See chapter 19 for defined terms.

Part 2 – Change of director's interests in contracts

Note: In the case of a company, interests which come within paragraph (ii) of the definition of "notifiable interest of a director" should be disclosed in this part.

Detail of contract	Options issued pursuant to the Rights issue exercisable at 8 cents on or before 21 March 2008
Nature of interest	Option contract
Name of registered holder (if issued securities)	N/A
Date of change	21 September 2007
No. and class of securities to which interest related prior to change Note: Details are only required for a contract in relation to which the interest has changed	N/A
Interest acquired	333,851
Interest disposed	$\overline{\phantom{0}}$
Value/Consideration Note: If consideration is non-cash, provide details and an estimated valuation	1 option for every five share issued pursuant to the Rights issue.
Interest after change	333,851

⁺ See chapter 19 for defined terms.