ENVIRONMENTAL GROUP LIMITED (THE) — M&A Activity 2003

Apr 23, 2003

ASX ANNOUNCEMENT

24th APRIL, 2003

COMPLETION OF WES ACQUISITION

It was announced to the market on 19^th December 2002, that EGL had agreed to exercise its option to acquire the entire issued capital of Water Environment Systems Pty Ltd (WES).

The acquisition was completed on 23rd April , 2003 with the payment of \$250,000 and the issue of 3 million ordinary shares. The former shareholders of WES are also entitled to a share of certain future profits of WES. The share component of the consideration is subject to a twenty-four month escrow arrangement with proportional releases at 6, 12 and 24 months.

The rapid acceptance of the low pressure sewer technology in Australia with \$5 million in orders secured in the first 8 months of this financial year indicates that this new business will make a significant contribution to the future profitability of EGL.

For further information, please contact Mr. Howard Johnson on (02) 8858 3499.

Howard F. Johnson Managing Director and CEO

ODELIVERING THE CLEANEST SOLUTIONS

Visit our website: http://www.environmental.com.au