REA GROUP LTD — M&A Activity 2006

Mar 14, 2006

Market Release

14 March 2006

realestate.com.au in Formal Discussions to Acquire PropertyLook

realestate.com.au has entered into formal discussions to acquire 100% of PropertyLook Pty Ltd.

PropertyLook Pty Ltd is a commercial real estate website operating in Australia and New Zealand.

While negotiations are well progressed, they are still subject to due diligence and finalisation of deal terms. If the acquisition proceeds, it is likely that it will be completed within the next 30 days.

Transaction details will be released to the market immediately upon finalisation.

About realestate.com.au

Founded in 1995, realestate.com.au Ltd (ASX: REA) is rapidly emerging as a leading global online real estate media company, realestate.com.au is a member of the All Ordinaries Index on the ASX (Australian Stock Exchange) and currently has a market capitalisation of AUS\$440m.

realestate.com.au Ltd currently owns and operates four leading real estate websites - realestate.com.au, realcommercial.com.au, allrealestate.co.nz and propertyfinder.com.

• realestate.com.au is Australia's largest residential real estate site and was launched in 1995. Over 80 percent of Australian residential real estate agents advertise more than 350,000 properties for rent and for sale on the site. Each month, realestate.com.au is visited by over 2.8 million people from Australia and around the world.
• realcommercial.com.au is Australia's largest commercial real estate site and was launched in December 2002. It is used by over 600 commercial agents and business buyers who advertise more than 40,000 commercial properties and businesses for sale or for lease. Each month, realcommercial.com.au is visited by 150,000 people.
• propertyfinder, com is the UK's third largest residential real estate site and was jointly purchased by realestate.com.au and News International in November 2005. It is used by over 2,500 residential agents who advertise over 270,000 properties for rent and for sale across the UK and Europe. Each month, propertyfinder.com is visited by 1.1 million people from the UK and around the world.
• allrealestate.co.nz is New Zealand's third largest residential real estate site and was launched in August 2005, It is used by over 500 residential agents and is visited by over 150,000 people each month.

In addition, realestate.com.au Ltd operates Australia's leading real estate web site design business (realestate.com.au Web Services) and is a 50% equity holder in a mortgage broking business realestate.com.au Home Loans.

For further information contact

Simon Baker Chief Executive Officer realestate.com.au Ltd T: 03 9843 4281 M: 0402 045166 E: sbaker@realestate.com.au