SEEK LIMITED — Earnings Release 2005

Aug 21, 2005

MEDIA RELEASE 22 August 2005

Results for the year ended 30 June 2005 exceed prospectus by 10% Revenue growth of 75% to \$70m, EBITA growth of 104% to \$28.5m

SEEK Limited, the leader in the online employment market in Australia and New Zealand, today announced a net profit after tax (pre goodwill) of \$21.8m for the year to 30 June 2005, exceeding prospectus forecasts by 10%.

Key features of the result include:

• Sales revenue growth of 75% from \$40m in 2004 to \$70m in 2005 (4% above Prospectus)
• EBITA growth of 104% from \$13.9m in 2004 to \$28.5m in 2005 (6% above Prospectus)
• NPAT (pre goodwill) growth of 52% to \$21.8m (minimal tax was payable in the previous year)
• EBITA margins improved from 35% in 2004 to 41% in 2005 $\bullet$
• Earnings Per Share (pre goodwill) improved from 5.6 cents per share in 2004 to 8.1 cents per share in 2005

SEEK CEO, Mr Paul Bassat said: "We are extremely pleased with these results, with strong revenue growth translating into outstanding earnings growth and exceeding our Prospectus forecasts.

"Whilst we have had a strong operating environment during the 2005 year, more significantly, a key driver of earnings growth has been the ongoing structural move in employment advertising from print to online."

Mr Matt Rockman, Executive Director - Sales said: "We have had very strong advertising volume growth of 46%. Overall online employment advertising volumes arew by 31% in 2005, while volumes in print media declined by 6% over the year¹. We believe this trend is set to continue.

"In our Prospectus, we outlined a very clear strategy to deliver growth from the existing employment classifieds business and from new businesses. This result is evidence of the execution of that growth strategy."

^<sup>1 Source: ANZ Job Ads series

Mr Andrew Bassat, Executive Director - Business Development said: "We have targeted particular industries and particular geographic regions where our penetration is lower than our "traditional" markets. These industries and areas have delivered substantial improvements in advertising volumes, particularly in the last six months.

"We have also targeted the SME market and have seen a substantial increase in the number of SME customers."

"Operating expenditure remains very well controlled, despite significant investments made in the business during 2005. In the core business, there has been ongoing focus on product development and enhancement, with several major product innovations during the year. This enhanced the SEEK product offer not only to advertisers but also to jobseekers.

"One of the major achievements in 2005 was the establishment of the SEEK Learning business. We made rapid progress during the year and expect the rate of growth in the business to be sustained." Mr Andrew Bassat said.

SEEK also announced today that it has acquired Dynamic Web Training (DWT) as part of its expansion of the Learning business. DWT provides short classroom based training courses for popular software applications. A separate announcement made today contains more details of the acquisition.

SEEK Learning generated sales revenue of \$6m in 2005, in line with Prospectus forecasts.

SEEK will continue to target further acquisition opportunities in the learning market during 2006. Any acquisition must meet both the strategic and financial hurdles required to generate sufficient returns to shareholders.

"The 2006 financial year has started well and the Board is confident that SEEK will achieve the 2006 earnings forecasts made in the recent Prospectus." Mr Paul Bassat said.

Directors have declared a final dividend of 1¢ per share, fully franked. This is based on the period from the date of allotment of new shares under the IPO to 30 June 2005 and is in line with the current dividend policy. The dividend will be paid on 30^th September 2005 to shareholders who were registered at 16^th September 2005.

For further information or to arrange an interview please contact:

Paul Bassat I	Anne Wickham
Chief Executive Officer	Reputation
SEEK Limited	Telephone: 02 8252 7002
Tel: (03) 9510 7200	Mobile: 0419 185 664
	awickham@reputation.net.au