MEDIA RELEASE

21 February 2007 (MR 07 - 03)

Perpetual delivers consistent profit growth; continues to invest in strategy

Key highlights for the half year to 31 December 2006

• 18 per cent increase in operating profit after tax
• 34 per cent increase in net profit after tax $\bullet$
• Funds under management up $4.0 billion to $36.8 billion $\bullet$
• Revitalised Perpetual Private Clients' business nearly 20 per cent of group profit

Financial performance

Perpetual Limited (Perpetual) today announced an operating profit after tax of $68.8 million for the half year to 31 December 2006. This represents an 18 per cent increase on the prior corresponding period to 31 December 2005 and is a significantly better result than Perpetual's forecast increase of 10 per cent given to the market at the Annual General Meeting in October 2006.

Net profit after tax increased 34 per cent to $98.8 million for the same period. This figure includes operating profit after tax plus a $30 million profit on the sale of a portion of Perpetual's investment portfolio.

On behalf of the board, Perpetual's Chairman, Mr Robert Savage, and Chief Executive Officer, Mr David Deverall, announced an interim dividend to shareholders of $1.73 per share fully franked (record date: 2 March 2007), representing a 7 per cent increase on the prior corresponding period of $1.62 per share.

Given its increasingly important role and the distinctive nature of its business model. Perpetual Private Clients was disclosed separately.

Mr Savage said Perpetual Private Clients now contributes almost 20 per cent of group operating profit after tax.

"We are delighted with this outcome for Perpetual Private Clients, which is a key component of our strategy to diversify our portfolio of businesses," he said.

Review of operations

Mr Deverall said Perpetual had focused its efforts on building performance track records in its new asset classes and continuing its investment in the delivery of strategic growth initiatives.

"We have continued to expand our asset management teams in Perpetual Investments, added to our front line sales capabilities in Perpetual Private Clients and recently acquired the business operations of Wignalls Lenders Mortgage Services in Perpetual Corporate Trust," he said.

Perpetual Investments' operating profit before tax rose 21 per cent to $70.4 million for the six months to 31 December 2006 from $58.0 million for the six months to 31 December 2005. Revenue for Perpetual Investments, including the global equities business, increased 15 per cent to $141.1 million for the six months to 31 December 2006 from $122.5 million for the previous corresponding period. Funds under management (FUM) by Perpetual Investments grew $4.0 billion or 12 per cent to $36.8 billion as at 31 December 2006 and grew by 21 per cent over the balance as at 31 December 2005. The $4.0 billion increase from 30 June 2006 comprised net inflows of $0.7 billion, mostly into new asset classes, and $3.3 billion in market and other movements driven largely by continued excellent returns from the equities markets and solid performances from our asset management teams.

Perpetual Private Clients' operating profit before tax grew 12 per cent to $17.9 million from $16.0 million for the prior corresponding period. Divisional revenue increased 13 per cent to $39.6 million for the six months to 31 December 2006 from $35.2 million for the six months to 31 December 2005. Funds under advice (FUA) grew by 9 per cent to $7.2 billion in the six months to 31 December 2006 and by 18 per cent for the 12 months from 31 December 2005, primarily the result of good service delivery, new clients and improved retention rates.

Perpetual Corporate Trust increased its operating profit before tax for the first half to $17.2 million from $15.6 million for the same period in 2005, a rise of 10 per cent. Divisional revenue increased 12 per cent to $32.2 million for the six months to 31 December 2006 from $28.7 million for the six months to 31 December 2005. Funds under administration (FUA) managed by Corporate Trust grew by 4 per cent from the balance as at 30 June 2006 to $185.0 billion as at 31 December 2006 and grew by 21 per cent over the balance as at 31 December 2005. The impetus for growth continues to be the attractiveness of the Australian securitisation market to overseas investors. the increased uptake of securitisation as a funding tool by the banking sector and the growth of the non-bank sector in which almost 100 per cent is securitised.

Outlook

Mr Savage and Mr Deverall said the fundamentals of the industry were strong.

"These are bolstered by the many opportunities emerging for each of our core businesses around superannuation in 2007 and beyond. We will update the market on our forecast for the year in the Chairman's 'Letter to shareholders' in May."

A copy of Perpetual's Half Year Report to 31 December 2006 is available on Perpetual's website at: http://www.perpetual.com.au/shareholder\_centre/publications.htm

For further information, please contact:

Susan Morey Head of Corporate Affairs and Investor Relations Perpetual Limited Telephone: 61 2 9229 3936 Mobile: 61 409 746 385

Tim Scott Manager Corporate Affairs and Investor Relations Perpetual Limited Telephone: 61 2 9229 9491 Mobile: 61 429 169 447