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ASX Announcement 26 June 2009

REA Group and News International enter non binding heads of agreement for potential sale of UK online business

REA Group Ltd (through its UK subsidiary REA Group Europe Limited) and News International Ltd have entered in to a non binding heads of agreement for the potential sale of all or part of their jointly owned UK online business, which runs the propertyfinder, hotproperty and UK propertyshop websites. The process is subject to due diligence and the parties completing negotiations and signing binding contracts.

REA Group Ltd confirms to the market that even if this transaction successfully proceeds to completion, it is unlikely to have any impact on the guidance provided by REA Group Ltd in its ASX announcement of 28 May 2009. This is that the potential impact of this transaction for REA Group’s net profit after tax and minority interest together with the other potential impairment costs relating to REA Group’s business in Hong Kong and UAE is anticipated to be a reduction of net profit after tax and minority interest in the range of A$26million to A$28 million.

For further information please contact:

Georg Chmiel Chief Financial Officer +61 3 9843 4262

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REA Group Limited ABN 54 068 349 066 Level 1, 678 Victoria Street, Richmond Vic 3121, Australia t +613 9897 1121 f +613 97987 1114 w rea-group.com