SELECT HARVESTS LIMITED — AGM Information 2007

Oct 25, 2007

SELECT HARVESTS LIMITED 2007 ANNUAL GENERAL MEETING

CHAIRMAN’S ADDRESS

Ladies and Gentlemen,

2007 was a tough but, nevertheless, successful year for the company. We delivered a net profit of some 28 million dollars – an increase of 6% above last year’s result. The company’s balance sheet and cash flow remain strong, which has enabled us to pursue future growth as well as increasing dividends.

We have built our business around a number of basic fundamentals:

• The international competitiveness of Australian almonds:

• Scale and mechanisation opportunities;

• Strong local and international consumer demand, and;

• Stable pricing and returns.

These strong fundamentals remain intact.

2007 saw our biggest ever planting program. 11,800 acres of new almond projects (including 1,000 acres of our own) has increased the area under our management by 44% to 38,600 acres and this has provided a sound platform for future growth in management services revenue and will also boost sales-income from our company-owned orchards. We are now the second largest grower worldwide and firmly positioned as a global player.

Over the last 12 months our Almond production has doubled to 12,000 tonnes. Based only on current plantings this figure will more-than-quadruple over the next six years. To cater for this rapid growth our processing facilities are being expanded via the commissioning of stage-one of a new almond processing plant. This state-of-the-art facility is the largest in the Southern Hemisphere and a great tribute to the hundreds of man-hours spent, both here and in the United States, by our project team. The plant is nearing completion and will be fully operational in early 2008 in time to process next year’s crop. It will take our processing capacity to approximately 40,000 tonnes catering for our needs through to 2011. Further upgrades will be planned in line with future crop expectations.

Also, as part of our plan to seek-out other growing areas we have - over the past two years - been developing an almond project in Western Australia. We have actively progressed this during the year and now expect stage-one (approximately 3,000 acres) to commence in 2009.

Going forward:

• We are assessing new financial structures for almond investments for 2009 and beyond;

• • Our development team continues to review expansion opportunities beyond the Murray Darling Basin and, at the sane time, is investigating alternative tree varieties that have proven successful in different regions overseas;

• We have also committed to develop over 4,000 acres of new orchards for Timbercorp in 2008.

Our food business continues to experience difficult trading conditions in the retail sector applying pressure to both revenue and margin. The business was reviewed during the year and we have realigned its core activities to suit our almond crop first-and-foremost. A new management and operations team is focusing on key brands and supporting our almond sales. They are undertaking a rationalisation of operations-and-production facilities to deliver significant efficiencies and cost savings. We expect this program to be finalised by June 2008. The major focus of this division in the future will be to provide channels to sell our almonds and increase the added value processing-activities of our future crops.

The uncertainty created by the continuing dry conditions within the Murray Darling Basin is impacting on our business and our share price. We are managing through this period of uncertainty while continuing to develop our business framework for future growth. I will deal with water supply in more detail shortly but first I want to talk about the current exchange rate and future growth:

After a period of a lower Australian dollar we are now experiencing 30-year highs. This has had the effect of lowering the Australian almond price. Despite this the international market remains strong and the Australian dollar prices that we are trading-at remain within historical ranges.

We anticipate that we will continue to create growth opportunities in the future from:

• Increased returns from our increasing acreage of mature and producing orchards;

• Increased tonnages from our company owned orchards over the next 7 years;

• Increased added value sales as our total almond tonnages grows, and;

• Development of new orchards.

Let me now deal with water supply.

Our orchards (and our investors’ orchards) have been established with permanent high security water rights. As the name suggests these rights provide the highest degree of water security necessary for permanent plantings. Last year Victorian irrigators in our region received their first restrictions on record with a 95% allocation. This had a minor impact on operations. However, the low water storages at the start of this season and the continuing record dry-spell have severely impacted the outlook for this year. We had planned for this, carrying forward water from last year to meet our early season requirements and advancing purchasing of licenses for our young orchards to utilise on mature trees.

As you are aware the dry conditions have persisted and, as we approach the end of the rain season, we are sitting on an 18% allocation with little prospect of an increase above 30%.

We have responded to these persisting dry conditions by developing a drought management plan whereby we will apply around 80% of normal watering to our trees.

Experience with our older orchards tells us that this level of watering is still capable of producing average crops and maintains the future productive capacity of our trees.

With regards to our own orchards we are putting arrangements in place to source temporary water, at a cost to our 2007/2008 profit of approximately $4 million pre-tax. We are also working with our investor-growers and project-managers to help them contain their waterpurchasing costs by putting drought management strategies in place for their orchards.

In terms of future strategies we are investing in a number of irrigation trials adopting a range of new technologies aimed at more efficient and lower water use.

Our view is that water supply from the Murray Darling Basin will return to a more secure and consistent level (as has historically been the case). In the interim the lower supplies will impact our returns and may delay new developments attached to this water source.

The management team are competently working through this period and remain committed to the company’s future prosperity. In the meantime I can report that all of our orchards under Select Harvests’ management are doing very well and we do have a record almond crop established for the 2008 harvest.

On that note, I would like to thank all of our staff, John Bird and his management team together with the Board for their efforts over the last year.