EVZ LIMITED — Capital/Financing Update 2008

Jun 2, 2008

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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

3 June 2008

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

Dear Sir/Madam

Profit Update

Following the appointments of Mr Andrew Powis as Chief Executive Officer and the elevation of Mr Ian Wallace to Chief Financial Officer of Envirozel Limited (ASX: EVZ), a comprehensive review of the forecast EBIT for the year to 30 June 2008 has been undertaken.

EVZ expects that the EBIT for the full year to 30 June 2008 will now be $8.6 million. This represents a 41% increase over the previous year comparable EBIT of $6.1 million.

Commenting on this forecast, Chairman Mr Gordon McKern stated:

“The EBIT result is very positive but has been impacted by several unanticipated issues which have arisen in the second half of the financial year. In particular:

• There were delays in the commencement of various shopping centre building contracts arising from uncertainties in the property construction market due to global financial market concerns which has impacted the performance of National Engineering, the Groups steel fabricating operation. The delays will result in National not achieving its budget by approximately $1 million. Whilst this market remains tight the operation continues to vigorously tender and is confident of future success.

It is however pleasing to announce that, EVZ, through a wholly owned subsidiary company, Cellular Beams Pty Ltd, has acquired the exclusive Australian licence to manufacture and distribute a range of innovative steel products, which will become increasingly attractive to builders with the continued increase in steel prices. National Engineering will manufacture these cellular beam products.

Marketing, manufacture and distribution of the cellular beam technology will commence over the coming months.

• There was an unforeseen contraction in the demand for work at Danum Engineering under an existing contract with a major customer in the second half of the current financial year which has negatively impacted EBIT by approximately $1.1million.

Danum Engineering is progressively attaining replacement work from alternative customers, which will result in a greater spread of its customer base.

• Brockman Engineering has experienced delays in the release of tank related work from a major customer which is only now being re-commenced. It is estimated the profit impact from these delays was approximately $200,000”.

Mr McKern continued:

“The Groups remaining two operations, Syfon Systems and TSF Engineering will report strong profit performances. Syfon Systems again has been an excellent contributor to Group profits.

TSF Engineering’s strong performance was the result of ten months contribution to this forecast. It also successfully overcame a number of integration hurdles which initially slowed its contribution to the Group.

Finally Mr McKern observed:

“EVZ has commenced its next phase of growth and has ensured this next phase is properly resourced and controlled.

The appointments of a CEO and CFO along with the implementation of a strategic plan will ensure that EVZ’s growth going forward will be well controlled and sustainable.

It will be Mr Powis’ role to recognise strategic acquisitions and other avenues for growth which will drive the continued improvement in the profitability of EVZ, whilst guiding organic growth within the existing five fields of operations.

There have also been two recent appointments to the Board of Directors: Mr Max Findlay and Mr Graham Burns both of whom, given their experience and knowledge will be invaluable in directing and overseeing the future growth of EVZ”.

Yours sincerely,

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Ian Wallace Company Secretary

For further information, please contact:

Andrew Powis Gordon McKern Chief Executive Officer Chairman Envirozel Limited Envirozel Limited Tel: +61 3 9670 4545 Tel: +61 3 9670 4545 Mobile: 0418 564 466 Mobile: 0408 509 084 E: andrew.powis@envirozel.com E:gordon.mckern@envirozel.com

About Envirozel Limited (ASX code: EVZ)

EVZ is an emerging industrial group with a portfolio of specialist businesses operating in the engineering services industry. 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 via organic growth and by an acquisition strategy which targets strong, established and profitable businesses where generational change or succession issues have become a constraint on growth.