SCHOOLBLAZER LIMITED — Earnings Release 2008

May 20, 2008

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

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

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PRESS RELEASE

INVESTMENT GROUP LIFTS FIRST HALF CORE PROFIT

Investment group HGL Limited (ASX: HNG) today announced a 14 per cent rise in Core Profit After Tax from $4.4 million to $5 million in the six months to March 31, 2008.

Following the 14 per cent rise in core earnings per share to 10.4 cents, directors have announced a commensurate 13 per cent rise in the group’s fully franked interim dividend from 6.2 cents to 7 cents a share.

HGL will recognise an after tax unrealised impairment charge of $7.7 million on the decline in the market value of its 13 per cent interest in funds manager MMC Contrarian (ASX code: MMA). In addition there has been a reduction of $10.3 million after tax in unrealised revaluation reserves, arising from valuing the other listed securities, including the company’s 6 per cent interest in funds manager Hunter Hall (ASX code: HHL), to market at 31 March 2008.

The reduction in the reserves and the impairment charge partially reflects the overall decline of share market values, especially in the funds management sector. As a result, HGL posted a Net Loss After Tax of $2.9 million.

The group’s 12 import and distribution businesses reported strong growth during the six month period, with Earnings Before Interest and Tax rising 31 per cent to $9.3 million, exceeding company forecasts.

Directors anticipate the businesses will continue to lift their profit contribution in the second half of the year.

Chief Executive Officer of HGL, Mr Kevin Eley, said “The strength of our operating businesses is a testament to our successful business model in which we invest for the long term in easily understood private businesses and provide management expertise to lift their performance to the next level”.

“Our latest acquisition, importer and distributor of collector model cars Biante, has been integrated smoothly into the group and its profit has exceeded expectations during the period. We are keen to acquire other distribution businesses which produce profit between $2 million and $10 million”, he added.

The businesses owned by HGL cover a broad spread of sectors, including beauty and skin care, speciality lighting, school uniforms and fabrics, as well as point of sale systems.

For further information call: Kevin Eley Tim Allerton HGL Ltd (02) 9221 7155 City PR (02) 9267 4511

HGL Limited ABN 25 009 657 961

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