INVESTSMART GROUP LIMITED — AGM Information 2006

Nov 12, 2006

Fat Prophets Australia Fund Limited Annual General Meeting 2006

Robert Bolton

Chairman

13 November 2006

Agenda

Welcome & Introductions

Chairman's Presentation

Formal Business

FY06 Financial Statements

Adoption of Remuneration Report

Re-election of Bruce Holman as a Director

Re-election of Andrew Brown as a Director

Re-election of Angus Geddes as a Director

Questions

Close of Meeting

Investment Manager's Report

Financials 1 July 2005 to 30 June 2006

• $\triangleright$ Net Profit after Tax of \$2,252,763

• Basic & diluted earnings per share grew from 1.37 cents per share to 7.00 cents per share

• $\triangleright$ NTA (before tax) per share rose from \$1.032 to \$1.1999
• $\triangleright$ Gain of 16.3%

• Benchmark ASX 300 All Accumulation index up 24%

Share Price

• $\triangleright$ FAT shares have been trading at a significant discount to NTA
• $\triangleright$ On-market share buy back commenced in September 2006 up to a maximum of 10% of issued capital
• $\triangleright$ To date 244,311 shares have been bought back

Debt

• $\triangleright$ Company presently has no debt

• Margin Loan facilities have been established to allow gearing should opportunities arise

• Maximum gearing level at 30% of total assets

• $\triangleright$ Board to approve first use

Dividends

Date	Paid (cents per share)
26 April 2006	1.2
24 October 2006	2.1
Intention to pay fully franked dividends every 6 months./