INSIGNIA FINANCIAL LTD — M&A Activity 2011

Jun 13, 2011

14 June 2011

IOOF Holdings Ltd GPO Box 264 ABN 49 100 103 722 Melbourne VIC 3001 Level 6, 161 Collins Street Phone 13 13 69 Melbourne VIC 3000 www.ioof.com.au

IOOF RESPONDS TO DKN STATEMENT

IOOF Holdings Limited (ASX: IFL) (“IOOF”) notes today’s statement by DKN Financial Group Limited (“DKN”) and confirms that it has submitted an indicative proposal to DKN to acquire 100% of the shares in DKN that IOOF does not already own (via its wholly owned subsidiaries)[ 1] (“the Proposal”).

The Proposal consists of an all cash offer of A$0.75 per DKN share to be effected by way of a Scheme of Arrangement, subject to conditions including the unanimous support of the DKN Board members capable of voting on the Proposal.

IOOF has commenced confidential discussions with DKN in relation to this Proposal, which are ongoing. The process is at an early stage and there is no certainty that the Proposal will lead to a transaction.

Managing Director of IOOF Mr. Chris Kelaher commented:

“IOOF has a longstanding and mutually beneficial relationship with DKN, both as a shareholder and as a long term business partner. However, we have over time come to the view that it makes strategic and commercial sense to explore the options for accelerating the growth of the DKN business under IOOF’s larger, vertically integrated wealth management model.” IOOF has retained Nomura as its financial adviser and Blake Dawson as legal adviser.

CONTACTS:

Media / Investors:

Melinda Hofman +61 2 9028 1054 Media:

Amanda Lee Ilse Schache +61 2 8298 6100 +61 2 8298 6100 +61 410 774 618 +61 416 041 768 amanda.lee@fd.com ilse.schache@fd.com

1 IOOF (via its wholly owned subsidiaries) owns 18.49% of DKN

About IOOF Holdings Limited

The IOOF Group is one of Australia’s largest independent and pure providers of wealth creation product and services. In April 2009, IOOF merged with Australian Wealth Management creating a fully integrated financial services company with offices in every state.

The Group offers the following services:

 Wealth Management  Asset Management  Superannuation  Estate Planning  Investment Management  Corporate Trust

The Group’s products and services are designed to accompany the lives of around 700,000 Australians from wealth accumulation into retirement and across to the next generation.

At 31 March 2011, IOOF had $104.5 billion in Funds Under Management, Administration, Advice, and Supervision.

IOOF operates under a variety of brands including Bridges Financial Services, Consultum Financial Advisers, Perennial Investment Partners Limited, Australian Executor Trustees (AET), Spectrum Super, Pursuit, Wealth Builder and Ord Minnett.

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