IMEXHS LIMITED — Earnings Release 2007

Aug 30, 2007

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ASX/Media Announcement (ASX: ABJ)

31 August 2007

Lack of market access continues to hinder biodiesel industry

Australian Biodiesel Group (ABG) Limited today cited restricted market access as the critical issue limiting the success of the nation’s biodiesel producers.

Releasing results for the first half of 2007, ABG reported a write-down of assets and inventories, as the company completes restructuring activities. Restructuring and restricted sales led to an overall loss of $10.8 million for the period, including $4.5 million of one-off items.

“Despite 12 months of negotiation regarding biodiesel fuel formulas, blending infrastructure and pricing, ABG is yet to secure a meaningful supply agreement with any of the oil majors, locking us out of 80% or more of the fuel market,” ABG Chief Executive Martin Earp said.

“ABG supplies small quantities of biodiesel to one major, at the insistence of a large consumer. All other sales are to the independent wholesale and distribution sector.

“The Government’s 350 million litre per annum biofuel target has failed to have any influence on the oil majors with regard to biodiesel, meaning most consumers are unable to access the performance, health and environment benefits offered by the fuel.

“Customers are seeking the excise savings and greenhouse reductions offered by biodiesel blends. Sufficient raw materials are available to support high volume production and the fuel can be manufactured and distributed at a profit. It is simply the lack of market access that is preventing the economies of scale required for a successful biodiesel industry in Australia.

Australian Biodiesel Group Limited	Six month period Ended 30 June 2007	Six month period Ended 30 June 2006
Sales revenue from overall operations	$6.63m	$6.50m
Net loss after tax from overall operations including one-off items	$(10.80)m	$(4.25)m
Net loss after tax excluding one-off items	$(6.30)m	$(4.25)m
Litres ofbiodieselsold	4.50m	5.98m

“During the first half of 2007, ABG continued to streamline its operations, returning its focus to the core business of manufacturing quality biodiesel.

“The company has implemented a more cost-effective fuel formula, improved its production process and revised its distribution chain, to serve a market radically different from the one we had at 30 June 2006, because of regulatory change.

Australian Biodiesel Group Limited ACN 096 687 839 Pier 8/9 Walsh Bay, 23 Hickson Road, Sydney NSW 2000 Australia t +61 2 9037 7250 f +61 2 9037 7288 e info@abgbiodiesel.com www.abgbiodiesel.com

“Fuel sales for the first half of 2007 totalled 4.5 million litres, down around 1.5 million litres compared to the first half 2006. The transition from a direct supplier of biodiesel to a wholesale supplier, necessitated by new regulatory requirements, had a major impact on sales during the first half of 2007,” Mr Earp said.

Details of first half result

ABG has written down costs classified as inventories for activities related to project development in North America by $3 million to nil. As previously announced by the company, development partner Tadanac has taken lead responsibility for ABG’s Tri-Cities development project in Illinois. While ABG believes it may recover future value from the project, as the company is no longer leading the development, it was viewed as prudent to write down the asset to nil.

Following an impairment review, ABG has written down the mothballed Berkeley Vale facility by $1 million, to reflect the value the Directors believe the company may receive from any future sale of this non-core facility.

Previously capitalised costs of $0.3 million at 31 December 2006 and current period costs of $0.5 million in relation to research and development activities were written down by $0.8 million to nil.

Additional restructuring costs, including staff redundancies, contributed around $0.2m in one-off costs during the period.

the period.
One-off items	Six month period ended 30 June 2007
North American write down	$3.0m
Berkeley Vale write down	$1.0m
Write down of capitalised costs from previous period	$0.3m
Redundancy andrestructure	$0.2m
Total	**$4.5m **

Forward outlook

ABG manufactures biodiesel for the purpose of blending in diesel to achieve a fuel product that remains within all the requirements of the Australian Automotive Diesel standard. These ‘complying blends’ offer a small excise advantage, as well as environmental and performance benefits, compared to many ordinary diesels.

ABG has secured distribution agreements with a number of quality wholesalers providing biodiesel blends to the logistics, mining, public transport and local government sectors in Queensland and New South Wales. ABG continues to work with its wholesalers to educate target consumer groups in the benefits of complying blends.

Further information: Brian Stewart, Corporate Affairs Manager, 02 90377252 or 0406 769 818.

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