News

Style Limited announces that it has recieved a confidential preliminary approach from an international private equity firm.

In the view of the Board, the discussions have not materialised to a point that would warrant further disclosure at this time.

Style Limited will provide the market with further updates should anything eventuate from any further discussions.

Style Limited is also pleased to provide the market with an Inaugural Company Forecast which includes brief commentary on key events in sales and operations.

INAGURAL COMPANY FORECAST AND COMMENTARY

Style Limited wishes to provide the shareholders with a broad 12 month revenue and earnings guidance for Financial Year 2008.

The revenue range and earnings forecast range for FY 2008 is:

	FY 2007 (Actual)	FY 2008 (Forecast)
Revenue	$19.8m	$60.0-80.0m
EBITDA	$1.8m	$14-20m

The bulk of the Company's revenue and earnings forecast is expected to be delivered in the 2nd half of FY 2008.

The Company belives there are several factors which will influence the end result, and therefore the Company deems it prudent to issue revenue and earnings range at this point. Some of the influencing factors include:

• Timing of the Company's increased production capacity; and
• Ability of the Company to deliver on the rapid ramp up of sales in new and growing markets.

Style's CEO Greg Johnson said "we continue to be excited about the Company's growth over the next few years and particulary in the coming 12 months as the Company's operation is now sufficiently established to deliver sustainable and profitable results."

Additional Commentary

The Board and Management of Style believe it is now appropriate after 3 years of sustained investment into production capacity, R&D, market development and establishment of reliable sales channels for its patented renewable product suite to provide a range of shorter term (12 month) revenue and earnings guidance to the market.

The Board of Style Limited notes that the business continues to trade in a particulary strong growth phase which is expected to continue beyond the 12 month forecast period. The Board cautions that changes in future economic conditions may impact on performance and shareholders should expect a degree of variance. This variance is reflected in the range approach to the guidance given by Style at this stage of the COmpany's development.

In Q1 2008 the Company expects the following events to influence its results:

1. Installation of the new production capacity is being completed but is late and has delayed an increase in production.

As previously advised the Company has sourced additional manufacturing lines for its finishing factory in Anji. This plant was scheduled to be operational by June 2007. Shipping delays and completion delays have meant that the new machinery will now be commissioned to start production in the first week of October 2007. The machine is currently in the factory and going through routine testing.

2. Product Delays to Market

The delay in the new plant coming on stream in turn delayed the launch of the Company's new product lines by 4 months. Despite this the forward order book for the new range continues to grow and production targets are on stream for Q2 2008. The new products broaden the spectrum of potential end-customers avaliable to the Company and its distributors in line with Style's longer term strategy.

3. Buckwold Western's short term volume reduction

The delay in the realse of the new products has had a short term impact on deliveries to its major North American client. With the new plant coming on stream at the beginning of October 2007 sales to Buckwold will revert to plan inline with a catch up provision as part of the exisiting partnership and 3 year forward purchasing contract. The full contracted sales will not be produced for the September Quarter (Q1FY2008).

Style continues to increase sales in line with the growing Effective production capacity. Style is focused on increasing the Effective Production Capacity of the facilities to reach its current Machine Output Production Capacity of greater than 4 million square metres (up to approx. 5 million with peaking shifts) which is achievable on exisiting finishing machinery with all efficiencies and broader supply chain operations optimized.

While this FY 08 Q1 result is anticipated to be slightly weaker than Q4 07, the Board belives that the combination of:

1. A significant production capacity increases in Q2 with the final commissioning of the new plant
2. Sales contract and order book growth from the American and European sales
3. Plus additional sales commitments being made by exisiting distributors

Will enable Style to deliver within the target range and continue to deliver value and performance to shareholders over the coming 12 months.

About Style Limited
Style Limited listed on the Australian Stock Exchange {ASX:SYP} in April 2004 and has controlling 100% interest in our manufacturing company Anji Ya Feng Bamboo Products Limited, based in Anji. The factory produces unique, patented flooring made from strand woven bamboo with a timber appearance and an extremely high hardness rating. The flooring is suitable for all types of usage from residential housing and units through to commercial buildings.

Media & investor enquiries
Stephen Roux
stephen(AT)stylelimited.com {TMPGTSTR}