SAFEROADS HOLDINGS LIMITED — M&A Activity 2008

Feb 19, 2008

==> picture [286 x 61] intentionally omitted <==

20 February 2008

The Company Announcement Platform Australian Stock Exchange

Acquisition of Bob Panich Consultancy Pty Ltd

The Directors of Saferoads Holdings Limited (ASX:SRH) advise that the Company has entered into an agreement for its wholly owned subsidiary Saferoads Pty Ltd to acquire the net assets of Bob Panich Consultancy Pty Ltd (BPC) and its related entities.

BPC produces and supplies an extensive range of traffic signal equipment to meet the current Australian Standard AS 2144, and is the Australian Distributor for GE LED (Light Emitting Diode) lanterns. Products include Traffic Lights, Pedestrian Lights, Accessible Systems and Signal Accessories provided to both Australian and International customers.

BPC has approximately 15% market share in Australia. Based in Ryde, NSW, BPC will be immediately integrated into Saferoads and, though the existing national sales network of Saferoads, Management is confident that strong growth will be achieved. All current BPC staff including Mr Bob Panich will remain with the company.

The purchase consideration is $3.05 million plus stock which represents a 3 times EBIT multiple. BPC has audited financial statements to 30 June 07 which indicate an EBIT of $1.1 million on sales of $4.6 million. The acquisition will be earnings per share accretive immediately, and fits closely with Saferoads’ strategic direction as a supplier and installer of road safety equipment.

The acquisition will be funded through an existing debt facility with the Commonwealth Bank of Australia. The Company continues to maintain its conservative balance sheet.

The anticipated completion date will be 31 March 2008.

==> picture [171 x 49] intentionally omitted <==

Darren Hotchkin Managing Director

SAFEROADS HOLDINGS LIMITED ABN 81 116 668 538

PO Box 340, Drouin, Vic, Australia 3818 Phone: 1800 060 672 Fax: 1800 060 673 Web: www.saferoads.com.au