Perpetual Limited — Earnings Release 2005

Aug 17, 2005

MEDIA RELEASE

18 August 2005

Perpetual announces 27 per cent increase in operating profit and special dividend

Perpetual Trustees Australia Limited (Perpetual) today announced a record operating profit after tax of $111.6 million, an increase of 27 per cent over the previous year.

Net profit after tax increased by 32 per cent to $119.5 million at 30 June 2005.

Good growth in asset volumes helped drive growth in total operating revenues of 15 per cent. Increased expenditure to support the group's growth strategy combined with the management of other expenses and the introduction of efficiency gains across the group grew EBITDA as a percentage of revenue to 49 per cent.

On behalf of the board, Perpetual's Chairman, Mr Charles Curran AO, announced a final dividend of $1.30 per share, which combined with the interim dividend of $1.30 per share paid in March 2005, brings the total dividend received by shareholders to $2.60 per share.

"Perpetual also announced a special dividend of $1.00 per share, bringing total dividends declared in respect of the 2005 financial year to $3.60 per share," he said. "The dividend is in accordance with the group's capital management policy which advocates the return of excess capital to shareholders and a 90 per cent pay out ratio of Perpetual's underlying profit."

Total funds under management grew by 23 per cent to $26.7 billion as at 30 June 2005. Funds under advice, administration and trust in Perpetual Private Clients increased to $7.3 billion, a rise of 11 per cent over the previous year. Funds under administration in Corporate Trust recorded excellent growth of 28 per cent to $144.3 billion driven in large part by the continued strong demand for residential mortgage backed securities.

Perpetual's Managing Director, Mr David Deverall, said the increase was underpinned by strong underlying markets, the continued award winning investment performance of Perpetual's funds management teams and healthy net inflows across all group businesses.

Reviewing the last financial year, Mr Deverall said that the highlights included the:

• opening of Perpetual's new global equities business in Ireland and the winning $\bullet$ of several important mandates;

• launch of the Credit Enhanced Cash Fund and the Credit Income Fund:

• integration of Perpetual Private Clients and Wilson Dilworth;

• outstanding performance of Perpetual's Australian Share Fund, which out- $\bullet$ performed the S&P/ASX 300 benchmark for the tenth consecutive year: and

• winning of numerous prestigious funds management awards such as the Morningstar 'Fund Manager of the Year' Award.

On 17 August, Perpetual and its joint venture partner in ASX Perpetual Registrars Limited (ASX Perpetual Registrars), the Australian Stock Exchange Limited (ASX), announced that they had agreed to sell 100 per cent of ASX Perpetual Registrars to Pacific Equity Partners (PEP) for approximately $132 million. The agreement is subject to PEP securing bank finance, approval for which is well advanced. Settlement is expected before the end of August 2005.

The net profit after tax for Perpetual's 50 per cent interest is approximately $13.5 million and the after-tax cash proceeds from the sale are approximately $50 million.

"The sale of ASX Perpetual is in line with our strategy to develop growth opportunities for our core businesses," he said. "While our investment in ASX Perpetual has been excellent, the business is not core to Perpetual."

Mr Deverall added: "Perpetual's performance and profitability continues to be strong and we will update the market on our first half performance at the Annual General Meeting in October."

After nearly 15 years on the board, Mr Charles Curran AO today announced his forthcoming retirement as the Chairman and a director of Perpetual as detailed in the 2005 Annual Report. The retirement will take effect from the conclusion of the group's Annual General Meeting on 18 October, when Mr Curran will be succeeded as Chairman by Mr Robert Savage.

Please click here for a full copy of Perpetual's 2005 Annual Report.

For further information, please contact:

Susan Morev Head of Corporate Communications and Investor Relations Perpetual Trustees Australia Limited Direct: 02 9229 3936 Mobile: 0409 746 385