FFI HOLDINGS LIMITED — M&A Activity 2007

Mar 8, 2007

FFI Holdings Ltd

ASX Announcement

Business Acquisition

FFI Holdings Ltd (FFI) has entered into an agreement to purchase the food processing and packing operations known as Prepact.

Prepact is a long established Western Australian based business that operates as a division of Greens Foods Ltd. The business specialises in the processing, packaging and distribution of a range of retail food products.

FFI intends to restructure the new business and merge the operations with its existing dried fruit, nuts, snacks and muesli products division, Olympic Fine Foods.

The purchase together with working capital and restructure costs will require an investment of approximately \$ 500,000 which will be funded from cash reserves and existing credit lines.

The purchase will provide a number of benefits to FFI. Gross revenue from the new business is expected to exceed \$1.5 million per annum and the restructure and merged combined operations is expected to significantly improve profit margins.

The acquisition is strategically an ideal fit for FFI. The business has many synergies with the existing FFI business in the areas of manufacturing, marketing and distribution.

The acquisition will have no material effect on current year earnings, however it is expected to deliver strong growth and significant profits improvement in the 2007/2008 financial period.

The Directors are confident that this further acquisition will enhance the FF1 operations and provide increased shareholder value.

Rodney Moonen

Chairman Of Directors

^0th March 2007