REA GROUP LTD — Capital/Financing Update 2006

Market Release

realestate.com.au LTD ACQUIRES PROPERTY LOOK AND STRENGTHENS LEADERSHIP POSITION IN ONLINE COMMERCIAL PROPERTY

Today realestate.com.au Ltd (ASX:REA) is announcing that it has finalised the agreement to acquire PropertyLook Pty Ltd for $9.05 million. This is in line with realestate.com.au Ltd's announcement to the market on 14 March that it had entered in to formal discussions to acquire PropertyLook Pty Ltd.

PropertyLook Pty Ltd operates propertylook.com.au, a commercial property website. During March, propertylook.com.au had 60,601 visitors viewing 2,400 listings from 175 agents across Australia and New Zealand. The main advertisers include Australia's four largest commercial agents - CB Richard Ellis, Colliers International, Jones Lang LaSalle and Knight Frank.

Over the next six months, propertylook.com.au will be merged with realcommercial.com.au, realestate.com.au Ltd's commercial property website. realcommercial.com.au has been Australia's largest commercial property website since launch in 2002 and during March this year attracted 142,131 visitors viewing 42,000 listings from over 600 commercial agents and business brokers.

Simon Baker, Managing Director of realestate.com.au Ltd, said "The combination of the two commercial sites clearly positions realcommercial.com.au as the leader in online advertising of commercial property in Australia and provides an entry point into the New Zealand market."

"Over the next six months we will upgrade the existing realcommercial.com.au website to include the best features of propertylook.com.au and realcommercial.com.au. In the meantime, both sites will operate in parallel with clear linkages between them."

"We believe that the combined operations will provide agents, their vendors, and their landlords with the most cost effective way to advertise to Australia's largest and most qualified online commercial property audience. We are extremely pleased to have Australia's four largest commercial real estate companies and all of the PropertyLook members as customers of realcommercial.com.au," said Simon Baker.

David Woolford, Chairman of PropertyLook, said the acquisition is great news for the commercial real estate industry.

"We have looked at all options and believe that the merger of propertylook.com.au and realcommercial.com.au will provide an enhanced service to the commercial market and to the clients of all commercial agents"

About realestate.com.au Ltd.

Founded in 1995, realestate.com.au Ltd (ASX:REA) is rapidly emerging as a leading global online real estate media company, realestate.com.au is a member of the All Ordinaries Index on the ASX (Australian Stock Exchange) and currently has a market capitalisation of A$420m.

realestate.com.au Ltd currently owns and operates four leading real estate websites - realestate.com.au, realcommercial.com.au, allrealestate.co.nz and propertyfinder.com.

• realestate.com.au is Australia's largest residential real estate site and was launched in 1995. Over 80 percent of Australian residential real estate agents advertise more than 350,000 properties for rent and for sale on the site. Each month, realestate.com.au is visited by over 2.8 million people from Australia and around the world.

• realcommercial.com.au is Australia's largest commercial real estate site and was launched in December 2002. It is used by over 600 commercial agents and business buyers who advertise more than 40,000 commercial properties and businesses for sale or for lease. Each month, realcommercial.com.au is visited by 150,000 people.
• propertyfinder.com is the UK's third largest residential real estate site and was jointly purchased by realestate.com.au and News International in November 2005. It is used by over 2,700 residential agents who advertise over 250,000 properties for rent and for sale across the UK and Europe. Each month, propertyfinder.com is visited by 1.3 million people from the UK and around the world.
• allrealestate.co.nz is New Zealand's third largest residential real estate site and was launched in September 2005. It is used by over 500 residential agents and is visited by over 150,000 people each month.

In addition, realestate.com.au Ltd operates Australia's leading real estate website design business (realestate.com.au Web Services) and is a 50% equity holder in a mortgage broking business realestate.com.au Home Loans.

About PropertyLook Ptv Ltd

Launched in 2001, Property Look Pty Ltd is Australia's second largest commercial property website and clearly focused at the premium end of the market. It is the only site that has the listings of the four leading commercial property agents - CB Richard Ellis, Colliers International, Jones Lang LaSalle and Knight Frank.

Propertylook.com.au's sister site, propertylook.co.nz, serves the New Zealand market.

In March 2006, the site had 60,601 visitors viewing 2,400 listings from 175 agents across Australia and New Zealand.

Prior to acquisition, the site was owned equally by CB Richard Ellis, Colliers International, Jones Lang LaSalle and Knight Frank.

For further information contact

Simon Baker MD & CEO realestate.com.au Ltd T: 03 9843 4281 M: 0402 045166 E: [email protected]