PPK GROUP LIMITED — Interim / Quarterly Report 2006

Mar 13, 2006

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

14 March 2006

Company Announcements Office Australian Stock Exchange Limited

For Release to the Market

PLASPAK GROUP LIMITED - HALF YEAR PROFIT ANNOUNCEMENT

Operating Profit Before Tax of $2.43 million (up 20.9%)

Interim Dividend 2.75 cents per share fully franked

In the six months ended 31 December 2005, Plaspak Group Limited ("Plaspak") recorded an operating profit before tax of $2.43 million, an increase of 20.9% on the corresponding period in the previous financial year.

Profit after tax is $1.863 million, an increase of 11.6%.

The higher operating profit and reduction in inventory levels generated a net cash flow from operating activities of $5.6 million, a considerable improvement on the previous corresponding period.

The directors have decided to maintain the interim dividend at 2.75 cents per share fully franked. The final dividend will be determined by the second half results.

Plaspak's traditional plastic packaging businesses faced difficult trading conditions in the first half, which conditions have shown little sign of abating. Raw material prices have remained at high levels. Major long term customers and traditional sources of work have continued the trend of sourcing supply from or relocating their manufacturing and filling operations to South East Asia. This trend has counteracted the efforts and success of management in increasing sales to and the number of Australian based customers. Although achieving an increase in sales of 5%, the negative factors have meant a basically unchanged performance and earnings contribution by the plastics packaging businesses.

The increase in operating profits in the first half has been achieved as a result of the performance of Rambor and York Precision Plastics, the two businesses retained by Plaspak following the acquisition of York Group Limited in early 2005. Both Rambor and York Precision Plastics have continued to trade to expectations and have provided Plaspak with the opportunity to diversify its operations and earnings.

To increase earnings in the plastic packaging businesses a general 5% price increase has been implemented as from 1 January 2006 for all non-contract customers. Prices for major contract customers continue to be governed by contract arrangements which basically reflect raw material prices and other input cost movements.

The directors also continue to seek out and review opportunities to grow the potential of the York Precision Plastics and Rambor businesses and other complimentary activities. Further initiatives will be undertaken when appropriate opportunities arise.

LSK

Colin Ryan Chairman

Contact regarding Announcement:

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