Axiom Properties Limited

The Directors of Axiom Properties Limited are pleased to announce that pursuant to the Strategic Alliance Agreement signed between the company and its major shareholder, Pivot Group, in October 2006, it has entered into two separate transactions that will involve Axiom completing development opportunities in Caboolture, Queensland and in Brighton WA.

The Caboolture opportunity will see Axiom purchase land from Pivot for valuation, and will then construct a purpose built Medical Centre for an ASX Top 150 company, Symbion Health Ltd. The terms of an Agreement to Lease and Lease have been agreed and executed. Under the terms of the Lease, Symbion will take a 10 year lease of the property with fixed annual growth increases on very attractive terms. A fixed lump sum construction contract has also been negotiated and agreed with the builder.

The Brighton WA opportunity will see Axiom purchase land on Marmion Ave, Brighton from Pivot for the construction of a purpose built childcare centre. Brighton is a part of the fast growing northern corridor region of WA. Under the terms of that lease, DayCare Australia Pty Ltd will take a 15 year lease of the property with fixed annual increases, also on very attractive terms. Final negotiations with the builder will see Axiom entering into a fixed lump sum contract for the construction of the premises.

Executive Director Ben Laurance said, “both of these opportunities represent an outstanding return on equity to shareholders. These developments have a combined end value of ~$7m and the superior returns they offer provide Axiom with some quality development opportunities for completion in a short space of time.”

“These projects also add to Axiom’s spread of developments across Australia. In addition to Axiom’s Western Australian projects at Port Geographe in Busselton and the 100 St George’s Terrace office development in Perth, Axiom will now have a project in Queensland and is actively pursuing other projects in Melbourne and Adelaide”, he said.

“It’s pleasing that the Strategic Alliance Agreement executed with Pivot in October 2006 is already providing opportunities for Axiom”, Mr Laurance said.

Both the Caboolture and Brighton projects are subject to shareholder approval, expected to be sought in February.

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Appendix 3B

AXIOM CANAL LOT SALES BOOMING

The Port Geographe joint venture, in which Axiom Properties Limited has a 40% stake, has sold a further 29 lots in less than a week in the latest stage of its canal subdivision near Busselton for $14.8 million. These lots have sold for an average of more than $500,000, and the last remaining lot in the latest release is being sought by a number of buyers at well over $1 million. The latest prices were up 23% on the prices achieved in the first four stages which were sold in one day in January this year. Axiom Executive Director, Ben Laurance, said the sales were all made to purchasers who had registered their interest in the first four stages of the project. “We now have sales contracts for 157 lots for nearly $70 million, and we still have a large register of buyers who have missed out in the first five stages,” Mr Laurance said. “The joint venture, which includes Macquarie Bank and Luke Saraceni, has 621 lots approved, and we are forging ahead with the civil works as quickly as possible to fulfil the demand,” Mr Laurance said. “During the next five years, Axiom shareholders can expect to receive their share of a total of more than $300 million in sales,” he said. “Our sales agent, Geoff Hanson, attributes the success of Port Geographe to its special location facing north across Geographe Bay, and each lot being absolute waterfront,” Mr Laurance said.

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Appendix 3Y

Quarterly Report 31 December 2006

Axiom signs strategic alliance with Pivot Group

Axiom raises $13M in strategic placement

www.axiompl.com.au

Registered Office: Level 18, 109 St Georges Tce Perth WA 6000
Postal Address: PO Box Z5351St Georges Tce Perth WA 6831