share placement

Envirozel Limited (ASX: EVZ) is pleased to announce it has raised $10.0M via the issue of
20,000,000 shares at $0.50 each, in a placement to assist in funding the acquisition of TSF
Engineering.
The company has previously advised the market in recent weeks via two ASX
announcements of its intention to acquire the business of TSF Engineering for $14 million.
Settlement is expected to occur on August 31st 2007.
The placement was undertaken by Southern Cross Equities Limited and strong demand was
received from a range of new and existing institutional and high net worth investors. The
pricing of the issue at a 2% premium to VWAP for the preceding 7 trading days reflects the
market’s continued enthusiasm for Envirozel’s well enunciated acquisition strategy
evidenced over the past 18 months.
Envirozel’s Executive Chairman, Mr Gordon McKern in commenting on the placement said:
“We appreciate the continued support of Southern Cross Equities and their client base of
leading fund managers and sophisticated investors and recognize their importance in the
execution of the company’s previously articulated acquisition strategy which focuses on
profitable companies that service infrastructure, construction and water based industries.”
“The new shares issued will represent 10% of the expanded issued capital of Envirozel upon
settlement.”
Mr McKern further stated:
“This placement underpins the financial strength of the company allowing the company to
maintain moderate gearing levels and be well positioned for continued expansion.”