CER Group Continues To Surge Ahead

Media Release

10 October 2007

CER Group Continues To Surge Ahead With Strong Third Quarter Growth

Statement made by David Warrick, Managing Director, CER Group Limited

• Group Q3 2007 sales grow by 60%

• Growth drivers were primarily from Australian successes with Certified Organics, and
continued domestic demand for NZ Nature

• VRM acquisition performing well with first time contribution to sales

CER Group Ltd (CER) has today announced another significant uplift in growth, with sales for the Group for the quarter ended September 30 moving it ahead by 60% on the same period last year.

Third quarter sales topped NZ$1.44 million, compared with NZ$894,000 during the third quarter of 2006,

CER’s Certified Organics business continued to grow in Australia in the third quarter after receiving initial commercial agricultural registration in July. This enabled Certified Organics to drive its first sales of its unique pine extract-based BioWeed Control herbicide to the Australian viticultural industry, and in doing so, lifted sales by 25% to $796,000.

Investment in sales and marketing is paying off for NZ Nature which achieved strong domestic sales growth of 24% on the equivalent period in 2006, reaching $320,000. Despite the adverse currency impact of the high New Zealand Dollar, domestic growth was supported by the continued upswing internationally for this business.

This quarter was particularly significant for the Group as it delivered on its aggressive growth and acquisition strategy with the purchase of the unique Australian sustainable environmental management company, Vital Resource Management (VRM).

VRM specialises in microbial products which treat soil and water. It has significant contracts with Queensland sugar cane growers and has excellent growth potential in Australia, New Zealand and internationally. In September VRM made its first sales contribution of over $300,000 to the Group, meeting expectations.

VRM adds a third business stream to CER Group and we are delighted with the significant momentum this new structure is delivering to the company’s growth and performance. We are committed to continuing this growth and with ongoing investment in our sales and marketing and continued strengthening of our management, I am confident we are well placed to deliver on this.

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