ABN: 19 003 677 245 PO Box 553 Strawberry Hills NSW 2012 Unit 1A, 207-209 Young Street Waterloo NSW 2017 Ph: +61 (2) 9699 7444 Fx: +61 (2) 9699 5386 The purchase represents an exciting opportunity for Quantum Energy Limited. It will now have two business operations, both of which have significant growth opportunities in Australasia and the rest of the world. The operating result for InSight in the first seven months of 2006 financial year and financial years ended 30 June 2005 and 2004 are as detailed below: June 2004 June 2005 7 months to Jan 2006 Revenue 17,365,146 16,866,948 13,185,614 EBIT 5,378,030 5,088,699 4,786,639 Net Profit after tax 3,768,168 3,627,467 3,350,647 The proposed acquisition is subject to approval by ordinary resolution of shareholders as a consequence of Mr John Walstab being a director of Quantum and a majority shareholder of InSight. In addition, as the InSight business is expected to be a significant contributor to the Quantum Group in terms of revenue and profits and because it is in a diversified sector from the Quantum Group’s primary focus of the heatpump technology sector, the proposed transaction will also be submitted for shareholder approval under Listing Rule 11.1.2. In this respect, shareholders will be receiving meeting materials in the next 4-6 weeks which will include a Notice of Meeting and independent experts report setting out all relevant information for shareholders to properly consider this proposed transaction. The meeting will be held 28 days following the despatch of those meeting materials. The advantage of the transaction is Quantum Energy Limited will now have two businesses, both with significant growth opportunities. Quantum Energy Technologies Pty Limited A manufacturer and distributor of advanced renewable energy solutions, specialising in hot water, heating and cooling products for residential, commercial and industrial applications. It has manufacturing operations in China, including the recently wholly owned foreign subsidiary established in Shanghai to provide sufficient product for both Australia and international sales.
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