Page 1 of 2 ASX Release 24 August 2006 Community Life Limited Enters into Heads of Agreement with LV Living Limited 1. to explore and co-operate in the development of a number of CLF properties 2. for CLF to acquire 40% of the issued capital of RewardsCorp Pty Ltd subject to due diligence Community Life Limited (“CLF”) holds a number of development sites that have development approvals for the construction of seniors’ living accommodation. Directors of LV Living Limited (“LVL”) and CLF have been in discussions in respect of a number of collaborative areas including possible joint-ventures on projects, funding and participation in the RewardsCorp business. Subsequent to these discussions, LVL and CLF have signed a Heads of Agreement to progress a number of initiatives to conclusion. Key points within the Heads of Agreement are: 1. LVL and CLF are to enter into a co-operation agreement that defines the overall involvement between the two organisations. 2. Subject to feasibility studies, LVL and CLF will enter into a joint-venture and/or development services agreement in order to apply LVL’s Seetek cost-effective housing construction system and Extra Care DMF concepts. 3. LVL may be engaged as preferred supplier of housing for the Maryborough site for use of the Seetek cost-effective building system. 4. LVL and CLF are to further review CLF projects in Bendigo and Newcastle to determine if there are any opportunities for co-operation in these developments. 5. LVL and CLF are to negotiate the joint management arrangements of the Property Trust that is being established by CLF and to appoint Responsible Officers to manage the trust on behalf of the parties. LVL and CLF intend to subsequently raise funds into the trust for investment across a number of segments including affordable housing for over 55’s and housing projects for major mining companies. Community Life Limited ABN 38 104 475 345 Level 6, 28 Clarke Street Crows Nest NSW 2065 Australia Telephone 02 9432 3999 Facsimile: 02 9460 9888 [email protected] www.communitylife.com.au Page 2 of 2 6. Subject to due diligence, CLF is to enter into a share sale agreement with multiple parties for the purchase of 40% of the issued capital in RewardsCorp Pty Ltd for $3.724 million; a. where LVL’s interests in RewardsCorp will be purchased for $2.4 million in cash and; b. Bririan Investments Pty Ltd and JAI Investments Pty Ltd (the founding members of RewardsCorp Pty Ltd) will sell down a portion of their equity for $1.324 million to be paid in cash. About RewardsCorp Pty Ltd RewardsCorp is in the business of the design and implementation of leisure-based sales promotions, rewards programs and incentives for national and international organisations. www.rewardscorp.com.au About Community Life Limited (ASX:CLF) For further information on Community Life please refer to our web site at www.communitylife.com.au or email [email protected]. -- ends --
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