SDI LIMITED — Capital/Financing Update 2005

Feb 3, 2005

SDI Limited

.Alt. N. 608 075 581 , A.S.N. 27 006 075 581

.ಹಾರ Office 59 Bunsdon St Bayswater, P.O. Box 314 | fax: +61 3 8727 7222 Victoria, 3153 Australia — Info@rati.com.au foll free 1 800 337 003 |

[ ph: +61.3 8727.7111 www.sd.com.au

4 February 2005

First half FY2005 Profit Guidance

Further to SDI's announcement on 23 December 2004, whereby the company indicated that its profit for the first half of the financial year 2004/05 would be minimal, the Company now expects net profit after tax to be approximately $100,000, subject to audit clearance. This result was achieved by a strong sales and profit performance for the month of December.

SDI expects to release its first half results on Wednesday 23 February 2005

For further information, please contact:

Mr. Gerry Bullon - Investor Relations 0418 106 675

Offices and subsidiaries in Brazil, Canada, Germany and the United States of America