GALE PACIFIC LIMITED — Capital/Financing Update 2004

Mar 10, 2004

Gale Pacific Successfully Completes \$15 Million Equity Raising

The Directors of Gale Pacific Limited ("Gale") today announced the successful completion of the Company's equity raising program announced on 10 February 2004.

Gale received \$11.0 million under a share placement pursuant to the Bell Potter raising, and approximately \$4.2 million from its Share Purchase Plan ("SPP") which closed on 9 March 2004.

The Directors are pleased to announce that approximately two thirds of the Company's shareholder base participated in the SPP, which was marginally oversubscribed. Directors have elected to retain the full amount subscribed.

The proceeds of the equity raising will in part fund the recently completed acquisition of Jung Garten & Freizeit Vertriebsgesellschaft mbH, with the balance being applied to working capital requirements, new product development initiatives and the reduction of gearing.

For further information, contact the Managing Director, Mr Gary Gale on (03) 9518 3312.

$\mathscr{J}$

GARY S GALE Managing Director 11 March 2003