PPK GROUP LIMITED — AGM Information 2007

Nov 13, 2007

25-27 WARATAH STREET KIRRAWEE NSW 2232

PO BOX 3006, KIRRAWEE DELIVERY CENTRE NSW 2232

TEL: 61 (2) 9521 8444 ◙ FAX: 61 (2) 9521 4561

14 November 2007

Company Announcements Office Australian Securities Exchange Limited

For Immediate Release to the Market

CHAIRMAN'S ADDRESS

2007 ANNUAL GENERAL MEETING

Performance Overview

PPK Group Limited ("PPK") reported an after tax profit of $10.1 million, or the earnings equivalent of 15.9 cents per share, for the year ended 30 June 2007.

During the year under review, PPK completed the sale of its traditional plastic packaging business and its other plastics manufacturing operation, York Precision Plastics Pty Ltd ("YPP"). The sale of these businesses represented a strategic departure from plastics manufacturing by PPK.

The reported pre-tax profit for the year of $16.8 million consisted of the following:

• $10.3 million from the sale of the plastic packaging business;
• $0.4 million from the discontinued operations of the plastic packaging business and YPP; and
• $6.1 million from continuing operations consisting of PPK-owned industrial property, Rambor Pty Limited and investments.

Dividends

During the year, the Board declared:

an interim and final dividend each of 3.25 cents per share, fully franked, thereby maintaining the yearly dividend of 6.5 cents fully franked; and

CHAIRMAN'S ADDRESS 2007 ANNUAL GENERAL MEETING

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a special fully franked dividend of 5 cents per share, bringing the total dividends paid in respect of the 2007 financial year to 11.5 cents, fully franked.

Capital Management Strategies

With the company virtually debt free following the sale of its plastics packaging business, the Board determined it appropriate to instigate suitable capital management initiatives

These initiatives commenced with an on market share buy back of up to 10% of PPK's issued capital which was announced to the market on 19 September 2006 ("Initial On-Market Buy-Back"). The Initial On-Market Buy-Back was completed on 13 November 2006.

Subsequently, shareholder approval was sought and obtained, at the Annual General Meeting convened on 21 November 2006, to increase the on-market buy-back to 25% of the issued capital of PPK ("Subsequent On-Market Buy-Back").

Consequently, PPK has acquired 7,151,289 shares under this capital management programme thereby reducing the number of shares on issue at the present time to 61,001,816.

The Subsequent On-Market Buy-Back will end on or by 21 November 2007.

The Board will continue to monitor the on-going capital requirements of the Company.

Strategic Direction

On completion of the sale of its plastics manufacturing businesses, PPK retained as its on-going business and investments:

• Rambor Pty Limited ("Rambor") which designs, manufactures and sells a range of proprietary products to the mining industry;
• a property at Riverwood in New South Wales leased to the new owners of YPP;
• an extensive profile of industrial properties leased to companies operating the plastic packaging businesses at Arndell Park and Kirrawee in New South Wales, Virginia in Queensland and Dandenong in Victoria;
• a property located at Seven Hills which is currently listed for sale;
• two (2) vacant sites, one at Arndell Park in New South Wales and the other at Virginia in Queensland, which are currently being considered for possible development opportunities; and
• investments in private companies Vend-Tech and Ezi Automation.

CHAIRMAN'S ADDRESS 2007 ANNUAL GENERAL MEETING

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The retained business and investment portfolio continues to provide PPK with stable core income in the form of rent from long term leases supplemented by earnings from the Rambor business. In addition, PPK continues to invest in the strong core research and development capabilities of the Rambor business with a determined focus on market expansion through export initiatives and the introduction of new products to market. These efforts are expected to provide leverage for continued growth of the Rambor business and consolidate its long term earnings potential.

PPK has also sought to identify and invest in appropriate public and private businesses in which there exists the opportunity for PPK to be actively involved in the management of these businesses utilising its core management expertise.

Consistent with this strategic direction, PPK has made a number of investments in public companies during the year including:

Industrea Limited (ASX Code: IDL)

Industrea Limited is a major supplier to the mining industry in Australia and overseas, both as an agent and a manufacturer.

Allied Brands Limited (ASX Code: ABL)

Allied Brands is the franchise owner in Australia of Baskin Robbins Ice-Cream, Cookie Man and Kenny's Cardiology.

Frigrite Limited (ASX Code: FRR)

Frigrite is a fully owned and operated Australian company and a market leader in the field of climate control solutions (refrigeration and air conditioning) for both the food and beverage market and the general community.

Cool or Cosy Limited (ASX Code: COS)

Cool or Cosy is a leading supplier of air conditioning and insulation products and services to the domestic, commercial and industrial markets.

Recently, PPK reduced its holding in Industrea Limited by selling a total of 6,000,000 shares which realised a pre-tax profit on disposal of approximately $2.5 million of which pre-tax profit of:

• $1.2m was recognised in the financial year ended 30 June 2007; and
• $1.3m will be recognised in the December 2007 half year.

CHAIRMAN'S ADDRESS 2007 ANNUAL GENERAL MEETING

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PPK is now the largest single shareholder in both Frigrite and Cool or Cosy and the Company will continue to explore suitable investment opportunities which have the potential to add value for its shareholders.

Economic Outlook

Despite the recent interest rate rise and the prospect of a further increase, the Australian economy is exhibiting solid growth, near full employment, rising domestic demand and increasing activity in the mining and infrastructure sectors. The combination of these factors is expected to present further opportunities for the Board to pursue increased returns for PPK shareholders. The anticipated continuation of these economic conditions and expected outcomes should compliment the intention of the Board to maintain its current policy of paying an annual fully franked dividend of 6.5 cents per share.

Colin Ryan Chairman