PEET LIMITED — Capital/Financing Update 2006

May 25, 2006

26 May 2006

Australian Stock Exchange Limited Exchange Centre Level 4 20 Bridge Street SYDNEY NSW 2000

Dear Sir/Madam

NEWS RELEASE

Please find attached a News Release regarding Peet & Co Ltd launches a new syndicate for Perth property.

Yours faithfully PEET & COMPANY LIMITED

DOM SCAFETTA COMPANY SECRETARY

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PERTH - REGISTERED OFFICE Level 7, 200 St Georges Terrace Perth WA 6000 PO Box 7224 Cloisters Square WA 6850Tel: +61 8 9420 1111 Fax: +61 8 9481 4712 Email: Perth@peet.com.au Licensed Real Estate Agent in WA Australian Financial Services Licence 225772

SYDNEY Level 20, Tower 2, Darling Park 201 Sussex Street Sydney NSW 2000Tel: +61 2 9006 1290Fax: +61 2 9006 1010 Email: Sydney@peet.com.au

MELBOURNE Level 1 436 St Kilda Road Melbourne VIC 3004 Tel: +61 3 9868 5900Fax: +61 3 9866 6230 Email: Melbourne@peet.com.au BRISBANE

Level 2 167 Eagle St Brisbane QLD 4000Tel: +61 7 3137 2040Fax: +61 7 3137 2045 Email: Brisbane@peet.com.au

Internet: www.peet.com.au

NEWS RELEASE

DDNV

Peet & Co Ltd launches a new syndicate for Perth property

Strong investor interest is expected for the latest residential land investment project being offered by Australia's largest broadacre property syndicator, Peet & Company Ltd.

Peet Byford Syndicate Limited has issued a prospectus to raise $8.5 million for a 19.7-hectare parcel of strategically placed land in the Perth suburb of Byford.

"This is a traditional Peet syndicate. It is a single purpose company created to purchase a landholding with the intention to subdivide it and sell resulting housing and other blocks. Profits are typically returned as fully franked dividends with capital progressively returned to shareholders over the life of the project," said Peet & Company Limited Managing Director, Warwick Hemsley,

"The property is strategically located immediately adjacent to the Byford Town Centre; a designated activity centre and part of the Western Australian Government's blueprint for the future development of Perth. Byford is expected to house over 20,000 people over the coming years and is already experiencing a rapid increase in development activity and residential lot prices," Mr Hemsley said.

"As well as being adjacent to the Byford Town Centre the property is close to existing primary schools, a proposed high school site and it is just 400 metres from the existing railway station, which is earmarked for future upgrade to a commuter station. The property is zoned Urban Development in the local Town Planning Scheme and has an area of 19.7 hectares (approximately 50 acres)," he said.

"It is proposed that the property be developed in the future for a range of 'inner-urban' uses such as residential lots, medium density housing, commercial uses and retirement housing as is appropriate for the doorstep of a town centre."

The offer of shares, as detailed in the Prospectus, is for 8.5 million $1.00 shares payable in full on application, with a minimum application of 5,000 shares. The issue is fully underwritten by Peet & Company Limited.

"We expect very strong demand for shares in Peet Byford Syndicate Limited given the track record of many similar syndicated residential land development projects managed by our company. Our most recent land syndicate for development of land, Peet Cranbourne Syndicate Limited, closed fully oversubscribed in 2 weeks," Mr Hemsley said

"We have an excellent record in profitably managing property syndicate projects for investors with a general target performance for new syndicates of at least 15 to 20 per cent per annum return pre-tax on capital."

PERTH - REGISTERED OFFICE Level 7, 200 St Georges Terrace Perth WA 6000 PO Box 7224 Cloisters Square WA 6850 Tel: +61 8 9420 1111 Fax: +61 8 9481 4712 Email: Perth@peet.com.au Licensed Real Estate Agent in WA Australian Financial Services Licence 225772

SYDNEY Level 20, Tower 2, Darling Park 201 Sussex Street Sydney NSW 2000Tel: +61 2 9006 1290 Fax: +61 2 9006 1010 Email: Sydney@oeet.com.au

MEL ROURNE Level 1 436 St Kilda Road Melbourne VIC 3004 Tel: +61 3 9868 5900 Fax: +61 3 9866 6230 Email: Melbourne@peet.com.au

BRISBANE Level 2 167 Eagle St Brisbane QLD 4000 Tel: +61 7 3137 2040 Fax: +61 7 3137 2045 Email: Brisbane@peet.com.au Peet has been involved in residential land development for over 110 years and is involved in major master planned estates in WA. Victoria and OLD. The company listed on the Australian stock exchange in August 2004.

Peet, its subsidiaries and syndicates under management produced before tax profits for investors for the 2005 financial year of $115 million. These entities sold a total 2,507 lots in the same financial year.

"In addition the company has demonstrated its community, social and environmental responsibilities as evidenced by awards that it has won in these categories in recent years."

The company currently acts as project manager and marketing agent for 55 land development projects in Western Australia, Victoria, New South Wales and Queensland. The combined total of these various estates' vield is in excess of 34,800 residential lots. The subdivided sales of the remaining lots in these estates in today's prices would realise in excess of $4.2 billion.

Peet continues to secure land projects for its group and for which it acts as project manager and marketing manager. It has raised equity funds of $200 million in recent years for land acquisitions.

Peet projects offer minimal overheads for investors as the company receives management fees only when block sales are settled which means that major development progress has been made before the syndicate incurs these costs.

"Our unique structure, where we act as an umbrella project manager and marketing and selling manager for a large number of individual land syndicates, ensures that syndicates are not burdened with high start-up costs associated with paying for their own individual project management in the lead-up to development."

"This project is an exciting one for Peet as it is in an area designated by the Western Australian Government to cater for the future development and growth of Perth."

It further reinforces the Company's capital efficient land syndication model which is an important feature of the business."

Enquiries about the prospectus can be made on Tel 1 800 689 778 or from the company website: www.peet.com.au/byford.

Ends.

(Further information from: Warwick Hemsley, Managing Director of Peet & Company Ltd (08) 9420 1111/ mobile 0418 923325 /: Louise Dumas, Impact Media 0411 201496)

Aerial photo attached