EVZ LIMITED — M&A Activity 2007

Aug 29, 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

30 August 2007

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

Dear Sir/Madam

Completion of Acquisition of National Engineering

The Directors of Envirozel Limited (ASX: EVZ) are pleased to announce settlement on the acquisition of the business of National Engineering is now complete.

The company has previously advised the market, via two ASX announcements, on 1[st] May 2007 and 25[th] May 2007 of the acquisition of the National Engineering business. Settlement of this acquisition had been delayed pending formal approval of the sale by the Singapore based vendors.

The acquisition of National Engineering was effective 1[st] June 2007.

The final acquisition price of the National Engineering business has increased to $5.6million, from $4.95million. The company, following appropriate due diligence, acquired certain additional work in progress contracts, which it anticipates will have a significant positive impact on the future earnings of National Engineering. The acquisition was satisfied through a cash settlement.

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

“Since acquisition, National Engineering has proved to be a value added acquisition for the Envirozel Group, bringing significant opportunities and potential synergistic benefits to the existing businesses within the Group as well as opening up the New South Wales market. National Engineering is operating profitably, is competently managed and promises to be a very important member of the growing Envirozel Group.”

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 four successful businesses, Syfon Systems, Brockman Engineering, Danum Engineering and National 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.

Recently announced acquisition of 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.