GALE PACIFIC LIMITED — Capital/Financing Update 2003

Mar 2, 2003

		Facsimile
To:	Australian Stock Exchange	FACSIMILE NO:
	Company Announcements Office	1900 999 279 200 200 200 201
FROM:	Rod House	AUSTRALIAN STOCK EXCHANGE
SUBJECT:	Release of shares from escrow - Listing Rule 3.10A	GAPO
DATE:	3 March 2003	TOTAL NO. OF PAGES: 1

On 27 November 2002, the Company announced the acquisition of the business and customer base of California Sun Shades Ind.

Under the terms of the acquisition agreement, the vendor received 974.811 shares in the Company which were to be held in escrow for one year. The vendor was also eligible for further consideration of \$US 1.3 million subject to the business achieving certain targets above an agreed plan.

The vendor has, for personal reasons, requested the Company to release 505,000 shares from escrow. Today, the Company agreed to do so in exchange for the vendor agreeing to waive its rights to the additional consideration of \$US 1.3 million. The release of the shares from escrow is subject to certain conditions including that if the shares are sold, completion of the sale will not occur for at least 10 business days. The balance of the shares remain escrowed under the agreement until 26 November 2003.

Yours Faithfully

Rod House COMPANY SECRETARY

IF THIS MESSAGE IS NOT FULLY RECEIVED OR UNCLEAR, PLEASE CALL 61 3 9518 3333 The information contained in this facsimile transmission is privileged and confidential and intended only for the use of the individual(s) and/or entity(ies) named above. If you have received this transmission in error, please
immediately notify us by telephone (collect) to arrange for return of the materials. Thank you. Gale Pacific Ltd 145 Woodlands Drive, Braeside, Victoria 3195, Australia. P O Box 892, Braeside, Victoria 3195, Australia Ph: (03) 9518 3333 Fax: (03) 9518 3398 Toll Free: 1800 331 521 ABN 80 082 263 778 ACN 082 263 778 $|$ coolaroo $\overline{\phantom{a}}$

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