Online Stockmarket Trading Update

Greencross Limited is pleased to announce that the Company has entered into an agreement to acquire the equity share of the Victorian veterinary clinics held by Babtec Holdings Pty Ltd.   Animal Emergency Centre which includes – Mt Waverley (59%); Animal Emergency Centre – Hallam (59%); Animal Emergency Centre – Frankston (59%); Anvet Werribee (50%); Petsfirst Hoppers Crossing (50%); Williamstown Veterinary hospital (100%); and Point Cook animal Hospital (100%). Greencross has agreed to acquire Babtec’s equity share of each of the above businesses, for $4.95 million.  Consideration will be made up of a combination of debt and cash reserves.

Babtec, which owns equity interests in the above seven veterinary practices in Melbourne, will provide Greencross with an expanded geographic presence in this market and enhance the Company’s positions the largest veterinary services provider in Australia.

The acquisition is an excellent strategic fit for Greencross as it consolidates the Company’s position as the largest veterinary operator in Australia increasing the number of animal hospitals and clinics by over 15% from 45 to 52, delivers Greencross significant scale benefits and synergy potential across supplier agreements, marketing and systems integration and expands the geographic presence in thecompanion animal market of Victoria which represents one of the largest domestic markets for companion animals per capital. The acquired practices can be absorbed into the Greencross group with little additional overhead incurred at the company level and once integrated there is potential to deliver improved margins in line with Greencross existing group margins.

Greencross’s Managing Director, Dr Glen Richards said, “The acquisition of these Babtec assets is a significant step in achieving the company’s strategy of consolidating the fragmented veterinary industry. We are excited about the integration of these practices into Greencross as well as expanding our footprint in the major pet owning market of Melbourne.” The acquisition is expected to be completed on 30 September 2010.

Greencross was established in 2003 and has grown to be Australia’s leading veterinary services company through the acquisition and integration of 45 practices around Australia. Greencross’s strategy is to continue to consolidate the fragmented veterinary services industry in Australia and is focused on delivering exceptional veterinary medicine and levels of care to its patients. The company’s vision is to be the practice of choice for employees, clients, patients and shareholders.

www.greencrossvet.com.au

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