Perpetual Limited — Earnings Release 2005

Feb 22, 2005

23 February, 2005

MEDIA RELEASE Strong fund flows and investment performance drive record first half profit for Perpetual

• Operating profit after tax up 31% to $54.3 million
• Net profit after tax up 58% to $66.8 million (including one-off costs of major strategic initiatives and realised gains on the sale of investments)
• Increased interim dividend to $1.30 per share
• Positive outlook for the full vear

Perpetual Trustees Australia Limited ("Perpetual") today announced a record increase in operating profit after tax of $54.3 million for the six months ending 31 December 2004, up 31% from the previous corresponding period.

The group's net profit after tax increased 58% to $66.8 million for the period and includes the oneoff costs of major strategic initiatives and realised gains on the sale of investments.

The strong result was underpinned by a 19% increase in total operating revenues to $174 million for the six months and continued management of operating expenses. Earnings before interest, tax. depreciation and amortisation (EBITDA), before significant items, increased 26% to $84.1 million.

In line with the capital management policy of returning 90% of underlying profit to shareholders, the Board has declared an interim dividend of $1.30 per share fully franked, payable on 18 March 2005 (record date: 4 March 2005), up from 70 cents in the previous corresponding period (in that period a special dividend of 50 cents per share was also declared being the final such dividend under a program initiated in 2001).

Perpetual's Chairman, Mr Charles Curran, said that he was pleased with the performance of the Perpetual team and their contribution to the record result.

"The Board is pleased with the progress being made to implement our corporate strategy of developing a more balanced portfolio, developing new growth engines and fully engaging our people as we develop a culture of team-based excellence. Some key achievements include the establishment of the global equities business in Dublin and the introduction of new credit products following the hiring of an experienced credit team.

"We appointed two new non-executive directors. Ms Meredith Brooks and Mr Philip Twyman, in November 2004, following the resignation of Mr Steve Chapman and Mr John Curtis. On behalf of the Board I extend thanks to Mr Chapman and Mr Curtis and welcome Ms Brooks and Mr Twyman," Mr Curran said.

Perpetual's Managing Director, Mr David Deverall said that the record result was driven by continued strong investment performance, solid flows into the Wealth Management and Corporate Trust businesses and the strength of underlying markets.

"The Wealth Management division recorded a strong half year with EBITDA up 32% to $74.7 million. Funds under management increased 20% from $21.7 billion at 30 June 2004 to $26.0 billion at December 31, 2004.

"The Corporate Trust division had another strong period of growth during the half year with funds under administration increasing 10% to $124.1 billion. The division's EBITDA increased 17% to $15.1 million.

"During the first half of the year the team has been focussed on implementing the corporate strategy. Highlights from the half include the opening of our new global equities business in Dublin, Ireland. The establishment of this business is in line with our strategy of developing new growth engines by broadening the asset management footprint.

"PHML (PI Investment Management Ltd), which has been granted authorisation from the Irish Financial Services Regulatory Authority to commence operations, will offer its clients global equities investment products through our team of fifteen professionals located in Dublin. We are in the process of transitioning approximately $2 billion of our Perpetual International Share Fund assets to the new team.

"We also launched our Credit Enhanced Cash Fund and Credit Income Fund, utilising the enhanced credit capabilities resulting from the hiring of an experienced credit team in August 2004.

"In September 2004 we signed a lease to move our Sydney operations into Angel Place (123 Pitt Street) at the beginning of 2006. As a result we will be selling our existing 39 Hunter Street building and we are pleased with the level of interest shown by potential purchasers.

"We have also completed the implementation of our new remuneration system. As a result of the excellent half year, there has been an increase in the profit participation pool, which more closely links our team's incentives to growth in operating profits.

Commenting on the outlook Mr Deverall said, "The wealth management market will continue to benefit from the strong retirement savings trend in Australia and there is continued healthy growth in the Corporate Trust industry. Given this favourable operating environment and our strong levels of funds under management (FUM) and funds under administration (FUA), we expect to record an increase in full vear operating profit after tax over the prior vear of approximately 25%, in the absence of market fluctuations."

-ends-

or

For further information, please contact:

Mr David Deverall Managing Director Perpetual Trustees Australia Ltd Ph: (02) 9229 9087

Vivienne Kailofer Corporate Communications Perpetual Trustees Australia Ltd Ph: (02) 9229 3936