SCHOOLBLAZER LIMITED — Board/Management Information 2006

Oct 3, 2006

Level 5, 34 Hunter Street Sydney NSW 2000 GPO Box 4406 Sydney NSW 2001

Phone: +612 9221 7155 Fax: +612 9233 2713 Email: hol@hol.com.au Web: www.hol.com.au

New partner in J Leutenegger

On 4 October 2006 Chris Roche became HGL's new equity partner in J Leutenegger Pty Limited. Leutenegger is one of HGL's eleven import and distribution businesses and is a Sydney based fabric and haberdashery importer whose product ranges include the market leading DMC and Beutron collections.

Chris Roche has acquired a 20% shareholding in Leutenegger with the other 80% being held by HGL. Chris has been with Leutenegger for many years and became Chief Executive in 2004. We are delighted that he accepted our invitation to become HGL's long term equity partner in this business.

On 3 October 2006 HGL acquired from lan Garrow the 15% of Leutenegger it did not already own. Ian had been HGL's partner in the business and was CEO from 1995 until 2004. We are very grateful to lan for building the business whilst he was CEO and for helping Chris Roche during the handover period.

HGL looks forward to assisting Chris Roche build J Leutenegger over the coming years and thanks customers, suppliers and staff for their valued support.

HGL has invested $40m in acquisitions over the past four years, has minimal debt and is well placed to continue developing its current businesses and pursuing further acquisitions.

PG Miller Chairman HGI I imited 4 October 2006

About HGL

• HGL (ASX code: HNG) owns 11 import and distribution businesses
• HGL is continuously seeking to acquire easily understood businesses
• HGL has a 37% investment in boutique equity fund manager MMC Asset Management Limited
• All businesses within HGL are held for the long term and are effectively partially owned by their management

For further information please contact:

Kevin Eley Chief Executive Phone (02) 9221 7155 Mobile 0414 457 254