Commencement of internalisation discussions

• Abacus Group in preliminary discussions to internalize Storage King's management
• Independent board committee formed to evaluate any proposal on behalf of ABG securityholders
• Potential for current Abacus MD to continue, with Storage King CEO to be appointed

Abacus Group (ASX:ABG) has advised that it is in preliminary discussions with Abacus Storage King (ASX:ASK) regarding the potential internalisation of ASK's management functions. To consider any proposal that may emerge from these discussions, the ABG Board has established an independent board committee (IBC). The IBC will consider the terms of any proposal on behalf of ABG securityholders and will engage with the independent board committee formed by ASK. In the event that agreement is reached between the ABG and ASK Boards and an internalisation were to proceed, the Boards have agreed in principle that Steven Sewell would continue in his current role as Managing Director of Abacus Group, while Nikki Lawson would be appointed as Chief Executive Officer of Abacus Storage King. These discussions are in the early stages and there is no certainty that any transaction will proceed. Securityholders do not need to take any action at this stage. ABG will keep the market informed in accordance with its continuous disclosure obligations. The IBC has appointed Morgan Stanley Australia Limited as its financial adviser and Allens as its legal adviser.