PMP gets out of sheetfed printing

As part of the agreement the two publicly listed companies will enter into a long term strategic
relationship under which Promentum’s Penfold Buscombe business will provide sheet-fed
printing services to PMP. This year PMP’s sheet-fed operations generated annual revenues in excess of $50 million. The addition of this amount of printing will lend further credibility to Penfold Buscombe’s claim to be Australia’s largest sheetfed printer.

The integration of the businesses is expected to begin February 2005.

As an integral part of the transaction, Penfold Buscombe and PMP will enter into a Print and
Co-operation Agreement with a minimum term of five years. Promentum will refer to PMP as preferred supplier all web printing orders it receives in the course of doing business, while PMP will do the same for Promentum with regard to sheetfed printing.

Promentum will issue PMP approximately 14.1 million of its shares at an agreed price of
$1.70 per share as consideration for the transaction (implying a transaction value of $24
million). As a consequence, PMP will become the largest shareholder of Promentum with
approximately 26 per cent of the enlarged group.

PMP has committed to retain its shareholding in
Promentum for at least three years (except in circumstances of a takeover offer being made or
a Scheme of Arrangement being proposed for all Promentum shares). PMP will appoint a non-executive director to the Promentum Board.
The transaction is subject to approval by Promentum shareholders.

According to Promentum CEO Alistair Hill, the latest transaction will pose no problems for the acquisitive company, which this year has already absorbed Websdale Printing. “The PMP sheet-fed business is an excellent
strategic fit for our Penfold Buscombe business and enables us to strengthen our presence
in each state. We will now have the leading market position in Queensland, New South
Wales, Victoria and Tasmania. Penfold Buscombe has a track record of successful integration of acquisitions, ensuring a smooth transition process and maximizing revenue opportunities.”

According to PMP CEO David Kirk the company’s sheetfed printing, while important, is not the company’s main area of focus. “We have a major management
focus and improvement plan for our core web printing business; by contrast, sheet-fed has
not been given the management time and capital the business requires and deserves.

“This transaction provides a neat solution to the future of our sheet-fed businesses, and the major customers of those businesses – including PMP – in conjunction with the leading sheet-fed printer in Australia.

“The management and employees at our sheet-fed sites worked hard to improve
performance in 2003/4 – and in all cases succeeded in doing so. We are very pleased to
have found such a solid future for these businesses with an expert, broadly based and well
capitalised sheet-fed player.”
Kirk indicated PMP would book an accounting profit from the sale of approximately $12
million. PMP will retain its Zillmere and Cheltenham sites.