Company

News 2010

Western Australian based property development company, Port Bouvard Limited ("Company") (ASX: PBD), advises it has varied terms of its Oceanique Construction Facility (Facility) with lender, St George Bank.

Effective today, covenants to the Facility are varied to the following:

• Reduction of limit by $40 million (i.e. from $101 million to $61 million) at 31 December 2010;
• Reduction of limit by $35 million (i.e. from $61 million to $26 million) at 30 June 2011; and
• Reduction of limit by $26 million (i.e. closure of facility) at 31 October 2011

The December coveant was relaxed from the previous reduction requirements of $75 million.  The Company has already satisfied the revised coveant and expects to meet the remaining coveants by settlements of pre-sold apartments and new sales from the marketing campaign which commenced on 31 October 2010.

Since the commencement of Oceanique settlements, the Company has settled apartments equalling $50.2 million in gross sales. All net proceeds have been applied to reduce debt.

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Mr Stephen Court
Executive Director
Port Bouvard Limited
T: +61 8 6436 2200

Mr John Wroth
Chief Executive Officer
Port Bouvard Limited
T: + 61 8 6436 2200

David Tasker
Professional Public Relations
T: +61 8 9388 0944 / +61 8 433 112 936
E: david.tasker@ppr.com.au