IMPERIAL PACIFIC LIMITED — Capital/Financing Update 2003

Sep 30, 2003

Belmont Holdings Limited

(ABN 65 000 144 561)

Level 10 19 Pitt Street Sydney NSW 2000 Tel: 9247 9315 Fax: 9247 9336

30 September 2003

Advice to: Company Announcements Australian Stock Exchange Limited

From: Mr P.E.J.Murray

Company Announcement

Sale of properties at Spring Farm, Camden.

. . . . . . . . . . . Peter E³Murray Director

Belmont Holdings Limited

(ABN 65 000 144 561)

Level 10 19 Pitt Street Sydney NSW 2000 Tel: 9247 9315 Fax: 9247 9336

30 September 2003

TO ALL SHAREHOLDERS

Sale of Spring Farm, Camden, Properties

The Directors are pleased to say that agreement was reached today for the sale of the group's properties at Camden to AVJennings Limited for \$8,977,600, payable \$3,360,000 on 1 October 2003, \$1,000,000 on 31 May 2004 and \$4,297,600 on 5 January 2005 -\$320,000 deposit having already been paid.

Final completion is subject to residential rezoning, which is being progressed urgently by all parties in the area and should be completed within $6 - 9$ months. (In addition to the above sums, further fees are payable in respect of the option arrangements).

What does this mean for Belmont? Firstly, the successful sale completes the final step in recovering from our problems of the mid 1990s. Secondly, the payment of \$3,360,000 tomorrow will allow Belmont to repay all formal borrowings – thereby leaving the group free of all debt. Thirdly, it reduces our reliance on the property market. And, fourthly, it enables Belmont to return to its traditional (but more careful Warren Buffett style) "strategic holding" thrust where, for example, 25% owned London City Equities is presently booking a \$1.1 million profit.

We thought it might be helpful to give you a few updated numbers on Belmont to give you some guide to the value of our shares. We stress, however, that you should discuss these issues with your financial advisor before taking any firm action.

• 1. In terms of net assets, we estimate these will stand in the order of \$4.7 million after accounting for accrued interest, other financing charges and tax payable – the latter a complicated figure given our need to activate past tax losses.
• 1. Group net assets of some \$4.7 million translates into net assets per share of $$1.62 the$ highest in the history of Belmont.
• 1. Revenue-wise, our ongoing income will come from four modest areas ie (a) management fees from London City, (b) potential dividends from London City, (c) future gains from strategic shareholdings we might acquire and (d) potential fees from the group's in-house "Australian Capital Growth Fund" - if the Board decides to expand this quite successful fund.

• Finally, shareholders must not overlook franking credits. After completion of the Spring Farm sale and payment of tax, Belmont's franking account balance (based on income tax paid) could rise to more than \$1.2 million - thereby creating for the future the availability of more than 85 cents per share in fully franked dividends. The Directors will discuss the question of dividends at the forthcoming Annual General Meeting.

Clearly, it is up to the market to determine an appropriate price for the Belmont shares. However, having said that, I, personally, intend to place an order to purchase 5,000 shares at \$1.30 shortly and this should go some way towards establishing a price which reflects the property sale news.

Yes, we are relieved and truly pleased that the considerable efforts of the directors, the key financier and other advisers have finally borne fruit in this way. The Directors also want to thank shareholders for their patience during the rough times – and their regular letters and telephone calls of encouragement.

Yours sincerely, For and on behalf of the Board

Peter² Murray Chairman of Directors