PRO-PAC PACKAGING LIMITED — Capital/Financing Update 2012

Apr 3, 2012

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Pro-Pac Packaging Limited ACN 112 971 874

4 April 2012

Pro-Pac Packaging expands into the food services packaging sector

ASX listed national packaging group, Pro-Pac Packaging Ltd (ASX: PPG) today announced the purchase of the business and assets of Gallego Pty Ltd trading as Deandy Packaging (“Deandy”).

Deandy is a leading and innovative supplier of food services packaging, with a national customer base serviced from its Adelaide head office and distribution centre. Deandy has current annualized revenues in excess of $14 million and the acquisition is expected to be immediately earnings accretive.

The purchase consideration will be funded from Pro-Pac's existing cash resources and the issue of 3.2 million PPG shares.

Commenting on the acquisition, Pro-Pac's CEO, Brandon Penn, said “ the purchase of this business provides Pro-Pac with further expansion into the food services sector, which we believe has excellent growth potential and offers significant expansion and diversification opportunities for PPG, given our extensive national customer base. Deandy has a strong and experienced management team that will boost the expertise and experience of the recently created PPG Food Services division.”

For further information please contact Mr Brandon Penn, CEO, on Tel 02 8781 0500

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