FINBAR GROUP LIMITED — Capital/Financing Update 2007

May 1, 2007

FINBAR GROUP LIMITED ACN 009 113 473

Level 3 15 Labouchere Road SOUTH PERTH WA 6151

www.finbar.com.au ASX CODE: FRI

2 May 2007

COMPANY ANNOUNCEMENT: FOR IMMEDIATE RELEASE

RE: PROFIT GUIDANCE

We refer to our announcement on 27 February 2007 where the directors relayed their cautious optimism in meeting the after tax profit projection for the year ending 30 June 2007 of \$9.5 million.

This quidance was provided on the basis that five Company and joint venture projects being One28, Soho, Altair, Avena, and Sol would be completed and settled to the end buyers so that revenue could be recognised prior to the end of the current financial year.

As has been detailed in various shareholder communications. Finbar's revenue is accounted for under the Australian equivalents of the International Financial Reporting Standards whereby revenue for all pre-sold apartments is recognised only once the benefits of ownership are passed on to the purchaser. In simple terms, this occurs when a project's construction is practically complete, the titles of each individual unit have been issued by Landgate, and settlement of the units to the end buyers has occurred. It is at this final point that the Company receives its proceeds from the sale of pre-sold units and is able to book the revenue.

As previously advised, if a project is due to be completed towards the end of a reporting period and is delayed for only a short period of time, the timing of the recognition of revenue can move into a subsequent reporting period. This can have a substantial effect on the reported performance in the period of which the completion may have occurred by way of reducing reported profit, and an effect on the period in which it will now occur by way of an increase in reported profit.

Apart from One28 which settled in January 2007, the remainder of the projects due to be completed prior to the end of the current reporting period are in the final stages of completion allowing for the buildings to be surveyed for the issue of separate strata titles. Those surveys have been completed; however, before the separate strata titles can issue, the buildings must reach practical completion.

The directors are not optimistic that practical completion of the building work will be reached in sufficient time for the issue of separate strata titles to allow settlements to occur before 30 June 2007.

Our Company is continually monitoring the progress of the building work and the issue of separate titles and as more information becomes available that is sufficiently definite to warrant disclosure or provide further guidance in this matter, we will immediately inform the market.

As it is expected that these settlements will occur and revenue recognised prior to the time in which the Company has historically made payment of a final dividend, the directors still anticipate the Company will be in a position to pay a fully franked dividend of \$0.05 per share in October 2007.

Yours sincerely

Rokinal

PAUL RENGEL Chairman