PPK GROUP LIMITED — Earnings Release 2005

Feb 2, 2005

PLASPAK 61 2 9521456

No.0986 $P - 1/1$

25-27 WARATAH STREET KIRRAWEE NSW 2232 AUSTRALIA

TELEPHONE: (02) 9521 8444 FACSIMILE. (02) 9521 4561

PO BOX 297 JANNALI NSW 2226 AUSTRALIA

www.plaspak.com.au

3 February 2005

Company Announcements Office Australian Stock Exchange Limited

For Release to the Market

HALF YEAR UPDATE

On 8 November 2004 Plaspak informed the market that forecast operating profit for the first half of the year would be approximately 30% less than in the first half of the 2004 year. Strong sales and a commensurate strong profit result in November reinforced this expectation.

Unexpected and unseasonably low sales in December compounded with the previously detailed year to date difficulties in the plastics packaging industry have resulted in an operating profit (based on preliminary unaudited accounts) of $1.93 million for the first half (down 46%).

The profit after tax $1.588 million is 37% down on the 2004 first half.

Positive factors which will influence the second half for Plaspak include:

• settlement of the sale of the Yalgar Road Kirrawee property which at this stage has been delayed to $(a)$ enable finalising the installation of a sprinkler system upgrade necessary to meet requirements arising as a result of the change in use of the property;
• $\langle \mathbf{b} \rangle$ renewal of the Plaspak-Colgate supply contract, with increased products and volumes, for a further term of 3 years; and
• $(c)$ recovery of higher raw material costs by increased prices which have been accepted by major customers.

In addition, Plaspak has now acquired 96.7% of York Group Limited and will within the next month proceed with compulsory acquisition of the remaining minority shareholdings. The York Group Limited acquisition will be earnings per share positive as from 1 February 2005.

Barring unforseen circumstances, the Board of Directors intends to maintain the company's interim and expected final dividends at prior year levels.

Colin Ryan Chairman

Contact regarding Announcement:

Mr David Hoff, Managing Director on (02) 9521-8444