ENVIRONMENTAL GROUP LIMITED (THE) — M&A Activity 2018

Oct 8, 2018

Suite 1.01, 10 Ferntree Place Notting Hill VIC 3168 Telephone: +61 3 9763 6711 ABN 89 000 013 427

The Environmental Group Limited

9 October 2018

Company Announcements Office ASX Limited Level 4, 20 Bridge Street Sydney NSW 2000

EGL Market update

Completion of strategic purchase: Baltec Australia

The Board of EGL is pleased to advise that the purchase of Baltec East Asia Pty Ltd (Trading as Baltec Australia) has been successfully completed at the agreed purchase value of $240,000. This was secured by 33.3% cash, 33.3% by an EGL share issue and 33.4% earn out.

Teams from both EGL and Baltec Australia have already been working closely to provide an enhanced service offering to our Electrostatic Precipitator (ESP) customers along with augmented business development activities in both Australia and the broader Asia Pacific region.

EGL’s strong balance sheet and net debt position has been developed to facilitate EGL’s growth through strategic alliances and acquisitions with the board actively seeking additional investment opportunities.

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Lynn Richardson

Chairman

The Environmental Group Limited