REA GROUP LTD — M&A Activity 2005

Oct 17, 2005

Allens Arthur Robinso

Date	18 October 2005	ABN 47 702 595 758
Page	1 of 3	The Chilley Tower2 Chifley Square
From	Richard Kriedemann / Andrew Wong	Sydney NSW 2000Australia
То	The Manager, Company Announcements Office,	Tel 61 2 9230 4000Fax 61 2 9230 5333
	Australian Stock Exchange, Sydney	Correspondence
Fax	1900 999 279	GPO Box 50Sydney NSW 2001AustraliaDX 105 Sydney
		www.aar.com.au

Fax enquiries ring 61 2 9230 4631

Dear Sir/Madam

News Limited - Takeover Offer for realestate.com.au Limited (REA)

News Limited announces that it will increase its cash Offer for REA shares from $2.00 to $2.50 per share. We are instructed that this is News Limited's final Offer and it will not be increased again.

Attached is a Fourth Supplementary Bidder's Statement dated 18 October 2005 pursuant to s647(3) of the Corporations Act, which incorporates a notice of variation under s650D of the Corporations Act to increase the Offer price.

News expects to complete despatch of the Fourth Supplementary Bidder's Statement by this Thursday 20th October, 2005.

Regards

Richard Kriedemann Partner Richard.Kriedemann@aar.com.au Tel 61 2 9230 4326 Attach

Andrew Wong Lawyer Andrew.Wong@aar.com.au Tel 61 2 9230 4141

Our Ref RXKS: ALWS: 205472285

cbls S0111609617v1 205472285

sum over the content and the professional proportion personal information and is intended solely for the named addresses. It is confidential and may beThis document and any following pages may contain personal information

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Wews Limited

18 October 2005

Dear realestate.com.au investor

NEWS LIMITED INCREASES OFFER PRICE FOR REA SHARES AND DECLARES ITS OFFER FINAL.

On behalf of News Limited (News), I am pleased to announce an increase in the price that News offers for all the shares in realestate.com.au Limited (REA). The Offer price is increased from $2,00 to $2,50 cash per share. That price is now within the value range ascribed to REA shares by Lonergan Edwards in its independent expert's report of 24 August 2005. This is News' final Offer. It will not be increased again.

The Offer is scheduled to close at 7pm (Sydney time) on 28 October 2005.

An updated Acceptance Form was sent to you on 5 September 2005. If you have not already accepted News' Offer, you can do so by completing that Acceptance Form (or the Acceptance Form previously sent to you). If you hold REA shares through your broker, you should call your broker if you wish to accept.

If you have already accepted News' Offer, you will be sent a cheque for the additional consideration due to you.

REA optionholders

You may be entitled, or may become entitled prior to the expiry of the Offer, to exercise some or all of your REA Options. If you exercise REA Options and are issued REA ordinary shares before the expiry of the Offer, you will be able to accept the Offer in respect of those REA ordinary shares.

If you wish to accept the Offer in respect of those REA ordinary shares, simply complete the enclosed Acceptance Form and return it in the envelope provided (pre-paid in Australia). When completing the Form, you must insert in the box titled "Your holding in realestate.com.au Limited" the number of REA ordinary shares you hold. Your completed Form must be received at the Adelaide office of Computershare Investor Services Pty Limited by no later than the close of the Offer, currently 7.00pm (Sydney time) on 28 October 2005.

Yours sincerely

John Hartigan Chief Executive Officer

*This letter forms part of the supplementary bidder's statement of News Limited dated 18 October 2005.

Introduction 1.

This document is a supplementary bidder's statement dated 18 October 2005 under section 643 of the Corporations Act and a notice of variation under section 650D of the Corporations Act. It is the fourth supplementary bidder's statement issued by News Limited (ACN 007 871 178) (News) in relation to its takeover offer for realestate.com.au Limited (ACN 068 349 066) (REA) dated 15 August 2005.

This Supplementary Bidder's Statement supplements and is to be read together with the Bidder's Statement dated 1 August 2005 given by News to REA, the first Supplementary Bidder's Statement dated 15 August 2005, the second Supplementary Bidder's Statement dated 5 September 2005 and the third Supplementary Bidder's Statement dated 13 October 2005.

$2.$ Increase in Offer Price and declaration of final Offer

News gives notice that it varies the Offer by increasing the price payable for each REA Share from $2.00 to $2.50. This is News' final Offer. Accordingly, references to "$2.00" In the Bidder's Statement when referring to the Offer are replaced with references to "$2.50" and the reference to "$126.0" million in section 7.1 of the Bidder's Statement is deleted and replaced with "$157,001,385".

As at the date of this notice, News has voting power of 43.72% in REA.

З. Other

$3.1$ Lodgement with ASIC

A copy of this Supplementary Bidder's Statement was lodged with ASIC on 18 October 2005. This Supplementary Bidder's Statement will prevail to the extent of any inconsistency with the Bidder's Statement. Neither ASIC nor its officers takes any responsibility for the contents of this Supplementary Bidder's Statement.

$3.2$ Defined Terms

Words defined in the Bidder's Statement have the same meaning in this Supplementary Bidder's Statement, unless the contrary Intention appears.

$3.3$ Authorisation

This Supplementary Bidder's Statement has been approved by a resolution passed by the directors of News.

DATED: 18 October 2005

SIGNED for and on behalf of News following a resolution of the directors of News

John Hartigan, Director