EVZ LIMITED — M&A Activity 2007

Jul 23, 2007

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A.C.N.010550357 A.B.N.87010550357

Level 7, 410CollinsStreet, Melbourne Vic 3000 phone: 039670 4545 fax: 03 9670 6670

24 July 2007

The Manager Company Announcements Office Australian Stock Exchange Limited 20 Bridge Street Sydney NSW 2000

Dear Sir / Madam

Acquisition of TSF Engineering

Envirozel Limited (ASX: EVZ) is pleased to announce it has entered into negotiations under a non binding offer to acquire the business of TSF Engineering.

TSF Engineering is a Sydney based operation which specialises in the design and installation of power generation equipment, communications equipment and marine installations. TSF operates throughout Australia, Asia and the Pacific region.

Established in 1966, TSF Engineering has a proven history of profitability and has completed significant contracts for an impressive client list including:

• St George Bank

• Westpac Bank

• Investa

• IBM

• Tabcorp

• Tenix

• Global Switch

• New Children’s Hospital, Westmead

• Australian Department of Defence

• Royal Brisbane Hospital

• Northern Territory Electricity Commission

The acquisition is subject to:

• The satisfactory completion of a comprehensive Due Diligence process.

• Execution of a purchase agreement for the business.

• Envirozel Limited shareholders approval (if deemed necessary).

Envirozel Limited Chairman, Mr Gordon McKern stated;

“The proposed acquisition of the business of TSF Engineering follows on from our recent successful acquisition of the National Engineering business. The TSF Engineering acquisition would increase the Envirozel Group’s annualised turnover to in excess of $100 million. In addition, Envirozel will pursue synergies between the operating businesses and anticipates significant organic growth will occur within all the operating businesses in the coming years”.

The TSF Engineering business will meet Envirozel’s acquisition criteria, which is as follows:

• Well established, profitable companies with good management

• Minimum of five years profitability

• Transaction size up to $25 million

• Must have strong organic growth potential

Mr McKern further stated:

“TSF Engineering is a profitable operation which will provide the Envirozel Group with a geographic entry into the lucrative Sydney and NSW market”.

“TSF Engineering will also provide many opportunities for the other businesses in the Envirozel Group and vice versa”.

Finally, Mr McKern stated:

“Envirozel believes the acquisition of TSF Engineering is expected to be earnings per share accretive”.

The anticipated acquisition cost of the TSF Engineering business is in the vicinity of $14 million.

Envirozel Limited will in due course provide the market with further information on the progress of this acquisition in line with the ASX’s continuous disclosure requirements.

Yours faithfully

Ian Wallace Company Secretary

For further information, please contact:

Gordon McKern Executive Chairman Envirozel Limited Tel: +61 3 9670 4545

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.

For further information, please visit: www.envirozel.com.au

AboutTSF 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.