SCHOOLBLAZER LIMITED — Earnings Release 2006

Nov 28, 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.hgl.com.au

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29 November 2006

HGL LIFTS CORE PROFIT 6%, EPS 23% AND DIVIDEND 14%

HGL (ASX code: HNG) is pleased to announce a substantial lift in earnings, a strong balance sheet and a company well positioned for continued growth over coming years. The financial performance of HGL for the year ended 30 September 2006 is summarised below:

• Core profit increased 6% to $7.4 million (2005: $7.0 million)
• $\bullet$ Core earnings per share increased 5% to 15.5 cents per share (2005: 14.7 cents)
• Dividends per share increased 14% to 11.6 cents fully franked per share (2005: 10.2 cents) $\bullet$
• Profit after tax increased 23% to $9.1 million (2005: $7.4 million)
• Earnings per share increased 23% to 18.9 cents (2005: 15.4 cents) $\bullet$
• The return on shareholders funds from all sources was 21% (2005: 7%). $\bullet$

Core profit was derived from three sources:

• Profits from eleven import and distribution businesses;
• A 37% shareholding in MMC Asset Management, a boutique fund manager, combined with management fee income from MMC Contrarian: and
• Dividend income from our listed securities.

HGL Strategy

HGL's focus is to invest in import and distribution businesses and funds management activities in conjunction with the people who run these businesses. HGL has for 20 years invested on the Australian Stock Exchange and has acquired import and distribution businesses both through takeover offers and through acquiring privately owned businesses. HGL continues to exploit the skills acquired in these two activities for the benefit of shareholders.

Results in Brief

The results from the import and distribution businesses were less than management's growth target. This reflects a temporary slowdown in some market sectors between April and July. We are pleased to note that trading levels are now back at expected levels.

The contribution from our MMC interests was pleasing. After our year end HGL announced that we had accepted an offer from MMC Contrarian Limited (ASX Code MMA) for our 37% shareholding in MMC Asset Management Limited and for the cancellation of our management agreement. This offer is subject to the approval of MMC Contrarian's shareholders at a meeting expected to be held in January 2007. HGL's consideration will be satisfied by the issue of new shares in MMC Contrarian. We anticipate a profit after tax of about $6.5m on this transaction. HGL is likely to become the largest shareholder in MMC Contrarian with a 6% stake in a sizeable listed investment company poised for growth. The HGL Board believes this should prove to be an exciting long term investment for HGL.

HGL Limited

ABN 25 009 657 961

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.hgl.com.au

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The market value of listed securities rose $8.2m to $30.8m largely underpinned by a $4.9m increase in the value of Hunter Hall International Limited and a $0.8m increase in Calliden Group Limited. HGL holds 6% and 7% respectively of the equity in those two listed companies.

Profit after tax from all sources was up 23% and included capital profits on the sale of securities of $$1.1m(2005 $0.2m)$ .

Acquisitions

HGL seeks to increase its investment in import and distribution businesses through acquisitions where the return is likely to exceed 20%. Over the last five years HGL has invested approximately $40 million in acquisitions and continues to seek long term investment in businesses that import branded goods.

In October 2005 HGL acquired JSB Lighting for an anticipated total consideration of $9m; we are delighted to advise that earnings to date have been above budget. During the year management reviewed many other possible acquisitions but they did not meet our strict guidelines; we continually review potential acquisitions.

Shortly after year end HGL acquired the 15% in J Leutenegger it did not previously own and then introduced the J Leutenegger Chief Executive as our new 20% equity partner in that business.

Dividends

The final dividend will be increased by 7% to 6.2 cents fully franked (2005: 5.8 cents) and will be paid on 20 December 2006. The total dividend for the year will be 11.6 cents (2005: 10.2 cents).

Outlook

The management team remains focussed on growing current businesses and making additional acquisitions that satisfy our risk and return criteria to deliver long term value to shareholders.

For further information, please contact

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

About HGL

• HGL (ASX code: HNG) owns 11 import and distribution 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 partially owned by their management

HGL Limited

ABN 25 009 657 961

investing in businesses