MEDIA RELEASE

29 May 2007 (MR 06 - 13)

Perpetual forecasts profit increase of approximately 18 per cent

In his annual '2007 May letter to shareholders', the Chairman of Perpetual Limited (Perpetual). Mr Robert Savage, today forecast an increase in operating profit after tax for Perpetual in 2007 of approximately 18 per cent over the prior year result of \$122.4 million. The outlook is subject to market conditions over the remainder of the financial year.

Mr Savage took the opportunity of the announcement to highlight the focus of Perpetual's key strategic priorities, which were reviewed in March:

Perpetual Investments

• $\rightarrow$ We will maintain our focus on creating outstanding investment performance in Australian equities and continue to offer a range of new and innovative products which leverage that performance. These include self managed accounts, structured products such as the new Perpetual Protected Investments series and geared investments. We expect this will strengthen revenue margins in our Australian equities business over time.
• $\rightarrow$ We will continue to arow funds under management in our other asset classes by strengthening our sales and support capabilities in international equities, credit, mortgages, property and infrastructure.

Perpetual Private Clients

→ We will continue to accelerate growth in Perpetual Private Clients' share of the high net worth investor market by building high quality adviser teams and improving our support capabilities.

Perpetual Corporate Trust

We will continue to leverage our capability and market position as a securitisation trustee by rapidly driving growth in our mortgage services business and becoming an industry hub and outsource partner of choice to the lending industry.

"During the second half of the year, we continued to invest in the implementation of our strategy," he said. "We are funding our strategic initiatives directly from operating earnings while continuing to drive earnings growth."

As at 30 April 2007, funds under management in Perpetual Investments stood at \$39.4 billion, an increase of \$6.6 billion or 20 per cent since 30 June 2006; funds under advice in Perpetual Private Clients were \$7.6 billion, an increase of \$1.0 billion or 15 per cent since 30 June 2006; and funds under administration in Corporate Trust were \$196.3 billion, an increase of \$17.7 billion or 10 per cent since 30 June 2006.

A full copy of the '2007 May letter to shareholders' is available on Perpetual's website.

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