Perpetual Limited — Capital/Financing Update 2005

Dec 11, 2005

Family Company of the Company of the Company of the Company of the Company of the Company of the Company of the Company of the Company of the Company of the Company of the Company of the Company of the Company of the Com

12 December 2005

Australian Stock Exchange Company Announcements Office

WMRC Project Update

On 23 September 2005 the Company announced the signing of a Heads of Agreement between Perpetual Investment Management Limited and Perpetual Trust Services Limited (Perpetual) acting as Responsible Entities of Perpetual's Diversified Infrastructure Funds, and ORT subsidiary Organic Resource Technologies Limited (Organic). Since that date Perpetual has been conducting a detailed due diligence and the parties (Perpetual and Organic) have been working together to develop the commercial terms for the WMRC Project with WMRC.

The detailed due diligence is continuing.

With respect to the development of commercial terms considerable progress has been made, and at a WMRC council meeting held on 8 December 2005 the following was resolved:

• WMRC have agreed in principle with the gate fee proposed by Perpetual and Organic, subject to agreement by WMRC of a Waste Supply Agreement,
• WMRC has authorised its executive to negotiate and draft a Waste Supply Agreement with Perpetual and Organic, and
• WMRC has agreed to consider an offer to invest approximately $1 million for a 10% equity interest in the DiCOM project, subject to the consent of Member Councils and successful completion of the Stage 1 prototype trial in accordance with terms already agreed between WMRC and Organic.

The key milestones still to be achieved before the WMRC Project proceeds, involving Perpetual as principal equity financier are as follows.

• Completion of Perpetual due diligence. Organic anticipates this will be concluded by the end of January.
• Perpetual to formally make the decision to invest. This will follow a successful conclusion of due diligence.
• The parties (Perpetual, Organic and WMRC) to negotiate and settle the project and commercial agreements, including the Waste Supply Agreement.

Richard Rudas Managing Director