www.pelgroup.com

Pacific Environment Limited (PEL) is an environmental science and technology company trading on the Australian Securities Exchange (ASX) as ASX Code: PEH.

Its mission is to help organisations manage their ongoing environmental concerns.
PEL’s clients include organisations in all sectors of industry and government, both here in Australia and worldwide. PEL helps companies comply with environmental regulations, gain approvals for developments, reduce emissions, address greenhouse gas issues (in accordance to the National Greenhouse and Energy Reporting Act 2007) and identify cost saving and energy efficiency opportunities. In the government sector, they help define and implement policies and guidelines.

AMMA was engaged as a corporate advisor to the PEL Initial Public Offering (IPO) and successfully helped the company navigate a successful IPO through a very difficult financial market, one in which only 5 out of 100 companies slated for an IPO with the ASX actually made it to market.

First Quarter FY2011 Results and Potential Share Buyback

Following the positive results detailed in our FY2010 Annual Report (a summary of which can be found in my Chairman’s report announced to the ASX on 28^th September 2010), Pacific Environment Ltd (PEL) is pleased to announce an excellent start to FY2011 with the first quarter’s performance in line with the Board’s expectation for profitability and return to attractive fundamentals this fiscal year.

Consolidated operating revenues were $2.35m in the 1st quarter of FY2011, an increase of 31% over the previous corresponding period, reflecting a significant increase in demand for the Group’s service offering.

The consulting business units continue to employ new resources and with high workloads across all these units, in conjunction with continued management of operational and corporate overheads, we can also report an EBITDA of $540k compared to $167k in the previous corresponding period.

These results are summarised in the following table.

         Note:  All figures for the first quarter of FY2011 are unaudited.

Both our cashflow and balance sheet also greatly improved over the FY2011 first quarter due to:

• the support from our founders converting their convertible notes early (refer ASX release dated 31 August 2010);
• the on-going reduction of aged creditors; and,
• improved cash performance resulting from improved profitability.

During the first quarter of FY2011 the Company opened a new office in South Australia and has plans underway to open offices in Western Australia and Gladstone this fiscal year, in line with opportunities arising in the resources sector.

As per our earlier advice, the Board also expects to close off funding within the next two months of $2,000,000 and will use this to both:

1. continue to reduce our balance sheet liabilities; and,

2.  investigate a share buyback if our share price remains undervalued compared to both our balance sheet and prospective enterprise ratios for the year.  By way of explanation, the Board is concerned that a number of very small trades can have a significant impact on the Company’s share price, therefore the Company could instigate a share buyback to protect shareholder value

Dr Merv Jones

Chairman