GENERATION DEVELOPMENT GROUP LIMITED — Interim / Quarterly Report 2008

Feb 27, 2008

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28 February 2008

Dear shareholder

Austock $8.8m half year NPAT exceeds forecast

Highlights

• $8.8m NPAT compared to prospectus forecast of $8.5m

• EPS 7.5 cents compared to prospectus forecast 6.8 cents

• Interim dividend of 2 cents per share (tax exempt PDF) up 33% on prior corresponding period

• Funds under management exceed $1.3b

On behalf of the Directors of Austock Group Limited (Austock), I am delighted to announce today a solid first six months for Austock, with a net profit after tax (NPAT) of $8.8 million for the half year to 31 December 2007, a 75 percent increase on the previous corresponding period. As a result of stronger than expected market conditions over the second quarter, NPAT exceeded the prospectus forecast of $8.5m.

Austock’s half year revenue at $43 million (a 43 percent increase on 1H07) was slightly lower than the prospectus forecast of $44.4 million. Revenue was distorted due to accounting for Life benefit funds in accordance with AIFRS, not attributable to group results.

Earnings per share were 7.5 cents (on a fully diluted basis), which compared favourably with the prospectus forecast of 6.8 cents per share.

This first half result was driven by a stronger than expected Corporate and Securities business. Our Investment Management returns were down as we continue to invest heavily in this business. Our focus for these businesses is growth, which is slower than anticipated due to the current investment climate. However we remain positive about the performance of Investment Management and across the group.

We are therefore delighted to announce an interim dividend of 2 cents per share, unfranked. The record date for the dividend is 12 March 2008 with payment scheduled for 31 March 2008.

Austock was registered as a PDF under the PDF Act on 7 June 1999. Under the PDF regime, Austock shareholders may elect to treat the dividend income and capital gains it may generate as tax exempt. However, shareholders should note that the individual circumstances of each investor may affect the taxation implications of the investment of that investor. Investors should seek appropriate independent professional advice that considers the taxation implications in respect of their own specific circumstances.

We thank you for your support of Austock which has a clear strategy for the future involving both organic and acquisitive growth. We will continue to pursue mergers and niche acquisitions that make sense strategically, financially and culturally, whilst growing the businesses we have.

Yours faithfully

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William Bessemer Chairman

Level 1, 350 Collins Street, Melbourne, Vic 3000 Telephone: 61 3 8601 2049 Facsimile: 61 3 9670 3081 Email: investor relations@austock.com Website: www.austock.com

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What does PDF status mean for Austock shareholders ?

Austock Group Limited was registered as a PDF (Pooled Development Fund) under the PDF Act on 7 June 1999. Companies registered as a PDF and their shareholders receive tax benefits on the income derived from their equity investments. Under the PDF regime, Austock shareholders may elect to treat the dividend income and capital gains it may generate as tax exempt. Within the company, income and gains from investments in small to medium enterprises are taxed at 15 per cent and 25 per cent on all other income and gains, rather than the corporate tax rate of 30 per cent.

Australian resident shareholders

Australian resident shareholders will generally be exempt from Australian tax on company dividends, whether the dividends are fully franked, partly franked or fully unfranked.

If a company dividend is franked, shareholders can elect to be taxed on the dividend and will be entitled to a tax offset equal to the amount of the franking credit. The tax offset means that electing to be taxed on franked dividends will generally be beneficial to shareholders with an income tax rate lower than 30% (e.g. complying superannuation funds or individuals with a marginal rate lower than 30%).

Where a company dividend is partly franked and partly unfranked it will essentially be treated as two dividends, so that the election to be taxed will only apply to the franked part of the dividend; the unfranked part will be exempt from tax regardless of whether the election is made. The election is made simply by preparing the relevant tax return on the basis that the franked dividend is taxable. Notice of the election does not need to be given to the ATO.

Shareholders should also be aware that the fact that dividends will generally be exempt income could affect the deductibility of other expenses related to the dividends. For example, interest paid on a loan used to purchase the shares might not be deductible where the dividends are exempt from tax. Shareholders should also consider the deductibility of related expenses when deciding whether to elect to be taxed on franked dividends.

Non-resident shareholders

Non-resident shareholders should not be liable to any Australian tax on company dividends, including dividend withholding tax. However, they should also consider the impact of receiving dividends under their domestic tax regime.

Tax File Number and Australian Business Number

Shareholders are not obliged to quote their tax file number (TFN), or where relevant, Australian Business Number (ABN), to the company. However, if a TFN or ABN is not quoted and no exemption is applicable, tax is required to be deducted by the company at the highest marginal rate (currently 45%) plus Medicare Levy (currently 1.5%) from certain distributions. No withholding requirement applies in respect of fully franked dividends paid by the company on the shares.

Note:

The individual circumstances of each investor may affect the taxation implications of the investment of that investor. Investors should seek appropriate independent professional advice that considers the taxation implications in respect of their own specific circumstances.