MEDIA RELEASE

17 August 2006 (MR 06 - 10)

Perpetual confirms 13 per cent increase in operating profit Portfolio of strategic initiatives producing tangible benefits

Key highlights for the full year to 30 June 2006:

• Operating profit after tax up 13 per cent to \$131.5 million
• Ordinary dividend up 25 per cent to \$3.26 per share for full year
• Special dividend of \$1.00 per share

Financial performance

Perpetual Limited (Perpetual) today announced a 13 per cent increase in the company's operating profit after tax for the 2006 financial year to \$131.5 million on an Australian International Financial Reporting Standards basis.

Net profit after tax for the year to 30 June 2006 increased by 14 per cent to \$135.3 million.

Increased asset volumes, solid revenue margins and new product and business lines boosted total operating revenues by 12 per cent to \$394.1 million.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 20 per cent to \$212.5 million.

Perpetual's Chairman, Mr Robert Savage, announced that shareholders will receive a final ordinary dividend of \$1.64 per share, which will be paid on 12 September 2006 fully franked at 30 per cent for the year to 30 June 2006 (record date 28 August 2006). Combined with the interim dividend of \$1.62 per share paid in March 2006, this brings the total ordinary dividends received by shareholders to \$3.26 per share, an increase of 25 per cent on the previous financial year.

"The board is also pleased to announce a special dividend of \$1.00 per share fully franked at 30 per cent to be paid on 12 September 2006 (record date 28 August 2006)," he said. "This brings total dividends declared in respect of the 2006 financial year to \$4.26 per share."

Wealth Management

Perpetual Investments funds under management rose by 23 per cent to \$32.8 billion at 30 June 2006, highlighting robust equity market returns, the growing inflow of funds from new asset classes and the strong performance of Perpetual's asset management team. Funds under management in global equities increased by 17 per cent to \$2.1 billion.

Perpetual Private Clients funds under advice increased 14 per cent to \$6.6 billion. The result was generated by solid growth across the business, particularly in funds in financial advisory, which increased by 19 per cent to \$4.4 billion.

Corporate Trust

Perpetual Corporate Trust securitisation funds under administration grew to \$178.6 billion, or by 24 per cent, driven by the strength of the mortgage lending market and new issuance volumes in residential mortgage backed securities.

Strategic overview

Perpetual's Chief Executive Officer, Mr David Deverall, said that many of the initiatives implemented as part of the company's strategy launched in 2004 were producing tangible benefits. These included the:

• launch of the credit fixed interest business, which has attracted funds under management of \$2.8 billion to date, and has consistently outperformed benchmarks since its inception in February 2005. New credit and enhanced cash fund products had net inflows of \$1.9 billion for the year to 30 June 2006
• $\bullet$ launch of the Ireland-based global equities business through the establishment of PI Investment Management (PIIML). PIIML has fully operational teams in Dublin and London. Marketing efforts have now been extended to include the United States, following approval by the Securities and Exchange Commission in the United States to act as an investment adviser to institutions in that market, and the Netherlands
• expansion of the quantitative investments business with the launch of the OI Long Short Equities Fund in September 2005. The Fund has attracted commitments of approximately \$650 million to date
• development of Perpetual Private Clients as a key growth business for the $\bullet$ group, the result of a decision to participate more broadly in this strategically important part of the wealth management value chain. Revenue increased from \$62.7 million for the year to 30 June 2005 to \$73.0 million for the year to 30 June 2006, an increase of 16 per cent
• diversification of Perpetual Corporate Trust's service offering to include mortgage variations and the broadening of its responsible entity services to include superannuation funds
• streamlining of Perpetual Corporate Trust's business operations to improve $\bullet$ operational efficiency and reliability

Forecast

Mr Deverall said that the strategy had diversified and positioned Perpetual competitively in the financial services industry.

"The new financial year has begun positively and, subject to prevailing market conditions, we are confident of our ability to grow in 2007. We will update the market on our forecast for the half year to 31 December 2006 at our Annual General Meeting on 17 October 2006."

Please follow the link to a full copy of Perpetual's Annual Report 2006: Part One -Annual Review; and Part Two - Statutory Financial Statements. Please also find links to the media presentation and the analyst presentation on Perpetual's 2006 results.

For further information, please contact: Susan Morey Head of Corporate Affairs and Investor Relations Perpetual Limited Direct: 02 9229 3936 Mobile: 0409 746 385