EVZ LIMITED — Capital/Financing Update 2007

Sep 2, 2007

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ENVIROZEL LIMITED ABN 87 010 550 357 ACN 010 550 357 Level 7, 410 Collins Street Melbourne VIC 3000 Australia PO Box 237 Collins Street West Melbourne VIC 8007 Tel: +61 3 9670 4545 Fax: +61 3 9670 6670 www.envirozel.com ENVIROZEL LIMITED

3 September 2007

Company Announcements Office Australian Stock Exchange Limited 20 Bridge Street SYDNEY NSW 2000

Dear Sir/Madam

Completion of Acquisition of TSF Engineering

The Directors of Envirozel Limited (ASX: EVZ) are pleased to announce completion of the acquisition of the business of TSF Engineering.

The company has previously advised the market, in two ASX announcements, on 24[th] July 2007 and 14[th] August 2007 of the acquisition of the TSF Engineering business.

Following successful completion of the due diligence process by the company, settlement of this acquisition has now been finalised.

The acquisition of the business of TSF Engineering is effective 1[st] July 2007.

The acquisition price of the TSF Engineering business was $14million and was funded by a recent share placement, which raised $10million, as announced to the market on 23[rd] August 2007 and the balance using bank funding provided by the Commonwealth Bank, who continue to be a strong supporter of the Envirozel Group.

In addition the vendors may receive a performance bonus payment after 12 months, which will be based on TSF Engineering achieving current year earnings in excess of stipulated targets.

Commenting on the completion of the acquisition of the TSF Engineering business, Executive Chairman Mr Gordon McKern stated:

“The acquisition of TSF Engineering is the largest acquisition undertaken by Envirozel Limited. It strategically positions the company as a fully fledged mid-cap engineering services provider and increases annualised revenues to approximately $110million. Importantly, the Envirozel Group is underpinned by a significant and supportive skilled labour force.

Envirozel’s ability to complete the TSF Engineering acquisition demonstrates it is acquisition proficient and retains the support of the financial markets in its acquisition strategy and vision.”

In concluding Mr McKern noted:

“TSF Engineering is a very successful profitable business which specialises in the design and installation of power generation equipment, communications equipment and marine installations. The business has completed numerous projects for a well credentialed client base. It is also pleasing to advise existing TSF Engineering management will continue their involvement with the business going forward.

Strategically, TSF Engineering provides the Envirozel Group with a geographic positioning in the lucrative New South Wales market. The acquisition will benefit the development of synergies and organic growth opportunities within the Group.

The acquisition of TSF Engineering ensures a significant improvement to the future profitability and therefore earnings per share of the company.”

Yours faithfully

Ian Wallace Company Secretary

For further information, please contact:

Gordon McKern Executive Chairman Envirozel Limited Tel: +61 3 9670 4545 Mobile: 0408 509 084 E:gordon.mckern@envirozel.com

About Envirozel Limited

Envirozel is an emerging industrial group with a portfolio of specialist businesses operating in the infrastructure, water and engineering industries. The company’s operations currently encompass five successful businesses, Syfon Systems, Brockman Engineering, Danum Engineering, National Engineering and TSF Engineering. These businesses have strong positions in their respective markets with exceptional growth opportunities. The company’s strategy is to grow by acquisition targeting strong, established and profitable businesses where generational change or succession issues have become a constraint on growth.

Syfon Systems is a specialist roof drainage engineer with leading edge technology that offers greater building design flexibility resulting in lower capital costs to developers, faster construction times for builders and lower life cycle costs for property owners. The company is market leader in Australia and has a growing business in Asia.

Brockman Engineering designs and fabricates large and very large scale tanks, silos and cooling towers for the chemical, petroleum, agriculture and water industries. The company also fabricates and repairs equipment for the aluminium industry.

Danum Engineering provides construction, on-site installation and maintenance engineering services to a wide range of industries including petrochemicals, aluminium, glass, cement, defence and agriculture. The company specialises in major shutdown maintenance.

National Engineering details, fabricates and erects structural steelwork, for commercial, industrial and retail projects including stadiums, car parking stations, bridges, multi-storey buildings, the resource sector and mining.

TSF Engineering

Sydney based, TSF Engineering specialise in the design and manufacture of power generation equipment, communications equipment and marine installations. It operates throughout Australia, Asia and the Pacific region.