SCHOOLBLAZER LIMITED — Earnings Release 2004

May 25, 2004

Level 5, 34 Hunter Street Svdnev 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

ASX+MEDIA RELEASE

26 MAY 2004

ACQUISITIONS, REVALUATIONS AND CAPITAL GAINS BOOST HGL PROFIT BY 200%

HGL invests in import and distribution businesses that distribute market leading branded products (ASX Code: HNG) as well as being a major shareholder in boutique fund manager, MMC Asset Management.

For the six months to 31 March 2004, HGL reported a 200% per cent lift in net profit after tax and minorities to $6.3 million from $2.0 million in 2003. Directors attributed this strong performance to recent acquisitions by HGL, capital gains and revaluations from its listed securities portfolio.

The profit after tax and minorities before revaluations and capital gains was $2.6 million compared to $1.5 million in 2003.

HGL made two acquisitions in 2003, BLC Cosmetics Pty Limited, exclusive distributor of Thalgo skin care and beauty products in Australia, and Sydney Point of Sale (SPOS), supplier of price ticketing, shelf management systems and merchandise displays to retailers.

These acquisitions together with HGL's other import and distribution businesses, drove EBIT from import and distribution businesses from $4.4 million to $6.2 million during the six month period.

Currently, HGL has $41.2 million invested in 11 import and distribution businesses, with this business portfolio reporting a 30% EBIT to capital employed return.

HGL's $18.8 million listed securities portfolio, boosted profit after tax with $3.7 million in capital gains & revaluations (2003; deficit of $700,000). These included after tax revaluation surpluses from HGL's investment in Hunter Hall International ($2.7 million) and MMC Small Companies Fund ($300,000).

Directors declared an unchanged interim dividend of 4.2 cents a share, fully franked, to be paid on the July $6.2004.$

For the full year, directors believe a profit after tax & minorities of between $5.0 and $5.5 million is achievable before any revaluations and capital gains from HGL's listed securities portfolio. As at 31 March 2004, HGL has a pre-tax unrecognised surplus of $5.4 million on its investment in Reinsurance Australia Corporation.

According to HGL's chief executive officer, Mr Kevin Eley, the results confirmed the long term value of investing with management in import and distribution businesses.

"To this we have added a 38% investment in boutique fund manager MMC Asset Management. MMC has $250 million of funds under management and also manages $205 million on behalf of MMC Contrarian Limited, a listed investment company. This role is performed in conjunction with HGL through an ongoing alliance." Mr Eley added.

HGL continues to search for import and distribution businesses to buy, where the return is likely to exceed 20 per cent of capital employed, and is targeting to invest $30 million over the next few years.

For further information: Kevin Eley on 02 9221 7155, mobile 0414 457 254