PPK GROUP LIMITED — Capital/Financing Update 2006

Oct 16, 2006

25-27 WARATAH STREET KIRRAWEE NSW 2232 PO BOX 297 JANNALI NSW 2226 TEL: 61 (2) 9521 8444 (B) FAX: 61 (2) 9521 4561

17 October 2006

The Manager Company Announcements Office Australian Stock Exchange Limited Level 4, 20 Bridge Street SYDNEY N.S.W 2000

For Release to the Market

Dear Sir/Madam

Receipt of Transitional Services Payment Plastic Packaging Business Sale

PPK Group Limited ("PPK") is pleased to announce that it has satisfied the first of two agreed performance criteria under transitional service arrangements with the purchaser of its plastic packaging business.

As a result, PPK has received a performance payment of $2.5 million.

PPK will also be entitled to an additional payment of up to $2.5 million for the provision of transitional services upon achievement of the remaining agreed performance criteria which must be satisfied by 31 March 2007.

The sale of this business was completed on 1 September 2006.

Yours faithfully PPK GROUP LIMITED

Robert Nicholls Company Secretary