PRO-PAC PACKAGING LIMITED — Capital/Financing Update 2011

Nov 10, 2011

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Pro-Pac Packaging Limited ACN 112 971 874

11 November 2011

Pro-Pac Packaging bolsters its presence in Western Australia

ASX listed national packaging group, Pro-Pac Packaging Ltd (ASX: PPG) today announced the purchase of the business and assets of Heron Professional Products.

Heron is a Perth based distributor of general industrial packaging products, personal protection equipment (PPE) and safety products with an emphasis on servicing the food sector. The business has experienced rapid recent growth and has current annualised turnover exceeding $3m.

The purchase consideration will be funded from Pro-Pac's existing cash resources and will include an issue to the vendors of 66,667 shares at 45 cents per share.

Commenting on the acquisition, Pro-Pac's CEO, Brandon Penn, said “ the purchase of the Heron business gives Pro-Pac an entrée into the food and related sectors in Western Australia and enhances the Group’s Western Australian operations. Linda Heron brings extensive food industry experience and when combined with Pro-Pac’s extensive product range, creates strong growth opportunities for Pro-Pac in Western Australia.”

For further information please contact Mr Brandon Penn, CEO, on Tel 02 87810500 or Mr Elliott Kaplan, Chairman, on Tel 02 90878022.

About PPG

Pro-Pac Packaging Limited is a diversified manufacturing and distribution company, providing innovative, flexible and rigid packaging solutions for a broad group of customers. PPG is headquartered in Sydney with operations in Adelaide, Brisbane, Melbourne and Perth. PPG’s securities are listed and quoted on the ASX.

For further information on PPG visit www.ppgaust.com.au

Pro-Pac Packaging Limited ACN 112 971 874 148 Newton Road, Wetherill Park NSW 2164 PO Box 6205 WPBC, Wetherill Park NSW 2164 Tel: 02 8781 0500 Fax: 02 8781 0599 www.ppgaust.com.au