PRO-PAC PACKAGING LIMITED — M&A Activity 2011

Apr 4, 2011

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Pro-Pac Packaging Limited ACN 112 971 874

5 April 2011

PRO-PAC PACKAGING CONTINUES EXPANSION WITH A FURTHER ACQUISITION

ASX listed national packaging group, Pro-Pac Packaging Ltd (ASX: PPG) today announced the purchase of the business and assets of the Melbourne based niche bag importer and distributor, SPD International Pty Ltd.

The business will be immediately relocated and integrated into Pro-Pac’s new Victorian industrial packaging distribution and manufacturing site in Dandenong. The integrated business will provide the group with an expanded range of bag products and the ability to provide further innovative solutions to existing and new Pro-Pac customers. The business currently generates turnover of approximately $2.3m per annum and is forecast to be earnings per share accretive in the first year post acquisition.

The purchase consideration, related relocation costs and working capital investment will be funded from Pro-Pac’s existing internal cash resources.

Commenting on the acquisition, Pro-Pac’s CEO, Brandon Penn, said “The SPD International purchase is another exciting building block in Pro-Pac’s continued growth strategy, and this purchase will provide further access for the cross selling of the group’s product range into several large national customers, particularly in the retail sector”.

Enquiries

For further information please contact Mr Brandon Penn, CEO, Pro-Pac Packaging Ltd on 0418 607 211.

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 48 Newton Road, Wetherill Park NSW 2164 PO Box 6484, Wetherill Park NSW 2164 Tel: 02 8781 0500 Fax: 02 8781 0599

www.ppgaust.com.au