SELECT HARVESTS LIMITED — AGM Information 2005

Oct 23, 2005

SELECT HARVESTS LIMITED 2005 ANNUAL GENERAL MEETING

CHAIRMANS ADDRESS

Ladies and Gentlemen.

This has been an exciting year for us. Our profits increased by 40%, dividends increased 60%, and our share price has almost doubled.

The three key indicators we use to measure progress were all positive:

• Almonds under management increased,
• The 2005 almond crop was a record, and
• $\bullet$ We increased the sales base of our Food Products Division.

Almond orchard investments continue to increase in popularity. Prices are at record highs while world demand continues to grow, and there is a similar trend for our food products range in the Australian market.

Our real challenge has been to maximize these opportunities.

Our Managing Director, John Bird will shortly give you a more detailed overview of the company's performance.

In the meantime I would like to recap on where the company has come from and where it is headed.

When I joined the company some nine years ago, our initial focus was to exit a number of activities centred on the garden products market and to concentrate our future efforts on our almond business.

At that time (1996) we owned some 1,900 acres of mature almond trees and in the preceding 8 years no new plantings had taken place due to a combination of cash constraints, minimal horticultural inputs and poor production yields.

Our initial focus and effort was on the rehabilitation of our orchards with improved horticultural management and increased inputs in terms of water and nutrients.

The next few years saw major improvements in yield moving towards best practice.

The resultant increased production together with a higher almond price paid for the replacement of dilapidated processing equipment with a state of the art USA plant providing a better quality product at a lower cost and, as importantly, excess capacity to accommodate future crop growth.

While Australia produces only a small proportion of the world's almonds we recognized our quality and yields were superior to California. Hence the opportunity of competing on the global market was a reality.

At the same time initial indications of increasing world consumption suggested good potential for sustained price increases in coming years.

Therefore, we felt well positioned to substantially increase our almond activities.

While a strong believer in the prospects of growing almonds in Australia we were mindful of the capital requirements and the delaved income of new developments and the ongoing variability of the income stream and therefore felt the best way to achieve scale and earnings certainty was to create a model in which we developed new orchards for external investors that we then manage on a fee for service basis.

As a result, our income stream is now based on the area under management and the tonnes produced rather than the selling price of almonds.

We commenced this program in 1998 and our initial progress was modest as almonds had little exposure in the investment community and our initial annual plantings were in the order of 500 acres.

From these humble beginnings the establishment of a strategic alliance with the Timbercorp Group in 2001 saw the acceleration of our annual plantings which were added to more recently by developments for the SAI Group.

Today we manage over 15,700 acres for external investors and 18,000 in total including our own orchards.

We expect to plant a further 7,000 acres in 2006 with further major developments planned for future years

We now manage in excess of 60% of Australia's orchards and are recognized as a world player as both a grower and processor of almonds.

The demand for almond investments remains strong and we are scaling up our tree nursery and development resources to support increased developments in 2007 and beyond.

The second component of our development activities in recent years was to become more involved in the processing and marketing of our almonds to participate in added value processing and to move closer to the consumer.

Again, if we go back eight years, the company was effectively a farm gate seller using agents to sell our crop with no control over the selling process or the destination of our product.

Our aim has been to build more sustainable distribution for our current and future almond production.

With this as our objective we have, over the last 6 years, made five acquisitions providing us with a base to produce a full range of nut-based products.

The consolidated group resulting from this strategy is what is now known as our Food Products Division where we have attained a market leadership position in Australia.

We market through the Lucky, Sunsol, Meriram, Nu-vit and Soland brands and today we supply over 35% of supermarket nut products.

You will find our products in all supermarket categories in which nuts are ranged snacks, cooking needs, breakfast cereals, health foods, and fresh produce, as well as numerous manufactured products in confectionery, ice cream, bakery, cake mixes, and spreads - to name a few.

We operate from two manufacturing sites in Brisbane and Melbourne employing over 150 staff and processing some 15,000 tonnes of product per annum.

We service all major supermarkets and smaller independent retailers and run a national merchandising team of 40 staff to service our brands in the stores of the major retailers.

The synergies with our almond business are firmly established. Approximately one third of our current almond production is further processed in some way in our Food Products Division and this will continue to grow in the future, providing secure channels for our crop.

In addition, our in-house sales team has developed export markets for our almonds including India, Japan, China, UK, Spain, Russia, Holland, Germany, France and the UAE.

Our markets are showing strong growth with a growing awareness of the health benefits of nuts amongst customers and health professionals. Consumers are moving towards healthy snacking and natural products and our brands are well positioned to capitalize on this trend.

There has been a great deal of expansion and consolidation in recent years and the groundwork is firmly in place for us to expand our business in the future.

These results have been achieved through the dedicated efforts of John Bird and his staff at our various locations.

It has been a real team effort, and on behalf of my Board and our shareholders, our thanks to these people for a job well done. We look forward to the future with justified enthusiasm.

Max Fremder Chairman

24 October 2005