Ariadne Announcements

MEDIA RELEASE 2 July 2007

Ariadne Announcements

Diversified property and investment group Ariadne Australia Limited (ASX: ARA) today announced the following:

- The sale of the three south-east Queensland properties, marketed by Jones Lang LaSalle (JLL) in December 2006 / January 2007, are now unconditional. Gross realised proceeds are $24.0 million of which $7.6 million was received by 30 June 2007. The balance will be received in the first half of the new financial year.

- The sale of Ariadne’s 50% interest in Viridian Noosa Trust Pty Ltd (The Viridian Noosa Resort Project) to Macquarie Bank Real Estate for $27.15 million was completed and settled on 27 June 2007.

- The New Zealand Overseas Investment Office has approved Ariadne’s 50% acquisition of Orams Marine Village in Auckland. Settlement for this acquisition was completed on 29 June 2007 and Ariadne commenced management of the business on 30 June 2007.

The south-east Queensland properties, marketed by JLL comprise: - A 3,254 sq m (approx.) mixed-use development site at Newstead in Brisbane, known as the Portal III parcel - Stage III of Element on Coolum, a vacant 1.076 hectare development site on Queensland’s Sunshine Coast The Morris Marina and Industrial estate, located 14 kilometres east of Brisbane’s CBD.

The Portal II Parcel at Newstead and the Morris marina and Industrial estate were purchased by listed construction company Watpac Limited.

The vacant site at Element on Coolum was sold separately to Zaclie Developments. Ariadne Australia’s Chief Executive Officer Murray Boyte said the company’s property activities were focused on a combination of ongoing development and strategic disposal.

“Ariadne will continue to acquire and develop property, and will continue to capitalise on these investments when the market is strong,” Mr Boyte said. Ariadne Australia Limited ACN 040 474 067 ABN 50 010 474 067 Level 23, Central Plaza One 345 Queen St, Brisbane Qld Australia, 4000 GPO Box 286 Brisbane, Qld 4001 T +61 7 3220 1111 F +61 7 3220 1211 www.ariadne.com.au.-CONTINUED – “These latest transactions complete the current rationalisation of Ariadne’s property portfolio, enabling the release of capital for deployment in our core activities of property development, car parking, investments and marinas,” Mr Boyte said.

Mr Boyte said the sale of the three south-east Queensland properties, together with the sale of its interest in Viridian Noosa Pty Ltd, allows Ariadne to capitalise upon future acquisition opportunities in the marketplace.

“Ariadne is continuing to develop and invest in property as well as diversify into high growth sectors where our specialist expertise can add value. This includes expanding into the management rights sector and marina market,” Mr Boyte said. “Our investment in marinas reached a key milestone earlier this month (6 June 2007) when we announced our intention to acquire a 50% interest and management control of Orams Marine Village in Auckland. Private equity investors have acquired the remaining 50%.”

“This transaction fits neatly within Ariadne’s strategic objective of investment in, and management of, marina and marine service groups.”

JLL Regional Director of Sales Geoff McIntyre said the sales, marketed as The South East Queensland Collection, attracted significant national interest. “This was a very opportune time for Ariadne to dispose of these assets, with the south-east Queensland property market continuing to outperform competing markets around the country,” Mr McIntyre said.

“The Morris Marina and Industrial estate attracted significant interest from the development sector, with its close proximity to Brisbane’s main arterial roads and location within the Australia Trade Coast precinct ensuring strong tenant interest into the future.

“Significant local and national interest was received given the limited supply of quality commercial development sites located close to road and water transport infrastructure near the Brisbane CBD.”

“Portal III at the gateway to Newstead Riverpark, Brisbane’s largest ever mixed use urban renewal project, has excellent commercial development fundamentals benefiting from high accessibility and exposure.” Ariadne’s recent strategic activity has included diversification into property management and letting rights. In May Ariadne announced the new brand for its joint-venture Management Letting Rights business with Watpac, ‘Mint Resorts and Apartments’

Mint fits Ariadne’s strategy of expanding property-related activities with ongoing facilities management characteristics, creating a recurring income stream for shareholders. Mint has been successful in securing outstanding 4-star rated properties in prime coastal tourist and corporate CBD locations and currently has approximately 800 units under management.
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