ENVIRONMENTAL GROUP LIMITED (THE) — M&A Activity 2007

Oct 9, 2007

ABN 89 000 013 427 Unit 3, 9 Packard Avenue Castle Hill NSW 2154 Telephone: (02) 8858 3499 Facsimile: (02) 9899 3463

10 October 2007

EGL COMPLETES TAPC AND SECURES ADDITIONAL PROFITS

EGL has today successfully completed the acquisition of Total Air Pollution Control Pty Limited (TAPC). Based on historic performance, TAPC is expected to contribute more than \$1 million to EGL's annualised pre tax profits.

In line with EGL's strategy of providing clean air and clean water solutions to industry, TAPC provides innovative solutions for the removal of particulates in air emissions. When combined with EGL's existing gas cleaning business this acquisition allows EGL to provide a complete suite of solutions to remove both gaseous and particulate pollution from air emissions with significant environmental benefits.

The TAPC acquisition creates a compelling competitive offering for EGL's air pollution control business as well as providing access to the larger particulate removal market. Cross marketing opportunities and sharing technical resources will provide growth opportunities for both businesses. The TAPC acquisition also provides immediate geographic expansion with its headquarters in Wollongong and a Perth office to provide a higher level of service to EGL's growing significant customer base in Western Australia.

TAPC is a leading example of EGL's acquisitive growth profile through the acquisition of established businesses with a history of strong profitability, recurrent revenue streams, excellent management, a robust platform for future growth, and strong strategic alignment with EGL's commercial objectives.

For further information please contact Duncan Stone on either (02) 8858 3499 or 0402987000.

Duncan Stone Managing Director

• Gas Cleaning
• Water/Wastewater Treatment
• Pressure Sewer