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Site Traffic Shows Significant GrowthTraffic growth on our website strengthened during May and June, with May traffic at over 380,000 unique visitors and increasing further to over 440,000 unique visitors in June. Clearly, the ASX Listing process during this period boosted both our public profile and website traffic volumes. That said, we remain confident that the continuing growth through June also demonstrates the benefits of our search engine optimisation (SEO) initiative which has been driving strong growth in unique visitors since the beginning of the calendar year. This is illustrated in the chart in figure 1.

A further source for optimism has been the significant growth in real estate agents and agent offices using the onthehouse.com.au website to display listing content, sales successes and contact details. Evidence of this can be seen in figure 2.

Our Consumer Online division provides extensive real estate content in the Australian real estate market via our on-line platform, Onthehouse.com.au. We believe the key to commercialising this division lies in utilising our desirable content to attract site visitors and then monetising this traffic. Encouragingly, we have seen significant progress with this strategy over recent months.

Consumer On-Line

Traffic source: Google Analytics. Report source: Company Data

Figure 1

Reports GeneratedUnique VisitorsVisits

onthehouse.com.au -Reports Generated, Unique Visitors, Visits

New Agent OfficesNew Agents

New Agencies is the number of new agents advertising properties each monthon www.onthehouse.com.au

Figure 2

Number of New Australian Agents & Agent Offices each month listed on onthehouse.com.au

Following our listing on 3 June 2011, we have focused our efforts on implementing a strategy for the integration of our three divisions being: Consumer Online, Real Estate Agency Solutions and Information and Analytics.

In consultation with the senior management team, we have developed a 100 day plan to ensure the smooth implementation of this initiative. I am extremely pleased with the efforts of our team in both the successful integration of our divisions and in the progress achieved thus far. We have a very talented and enthusiastic team of people who are committed to delivering our vision and I trust this update provides you with an insight into our progress to date.

CEO Update

Michael FredericksManaging Director & CEO

Shareholder NewsISSUE 1 / / AUGUST 2011

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Onthehouse.com.au Website EnhancementsThe company has recently released enhancements to its ‘Find an Agent’ section on the onthehuose.com.au website. (pictured in figure 3). This new service lists real estate agent offices and individual agents across the country, providing free promotion of real estate agency offices and individual agent profiles, sales listings and rental listings. This feature has been successful in significantly enhancing our agent engagement.

In addition to new offerings, we continually undertake regular usability and technical testing to ensure Onthehouse.com.au attracts and engages site visitors. These activities are critical for the maximisation of revenue growth for the company.

New Product ReleasesBoth Console and PortPlus have had new products under development. Mobile and iPad applications for the real estate agency Sales Management (Client Manager) and Rental Management (Live Agent) applications are currently being launched.

The Client Manager mobile application empowers agents with mobile property sales and industry content applications which are easily utilised while out of the office. Live Agent is an innovative mobile-enabled property maintenance inspection tool which allows agents to manage inspections in real time while in the field.

These two applications utilise leading edge mobile technology and are particularly well suited to those in the real estate profession. Importantly, both applications further demonstrate our ability to provide innovative products to the significant Australian real estate industry.

Traffic Monetisation UnderwayIn June we appointed “The Ad Network” to assist in selling advertising on our website. As a result of this appointment, advertising for July and August has now been fully sold. We are encouraged by the quality of the customers who have purchased the advertising inventory, which include some of Australia’s leading financial brands. The medium term outlook appears promising, with robust demand indications for our September advertising sales.

Figure 3

Real Estate Agency SolutionsThe Real Estate Agency Solutions division provides front and back office tools for real estate agents. In order to gain a better understanding of the issues of the industry and to ensure the new combined company delivers a service that exceeds the expectations of our customers, I have meet with many of our real estate agency clients since we acquired Console and PortPlus. This is an important dialogue and I will continue to talk with the industry on a regular basis.

Shareholder NewsISSUE 1 / / AUGUST 2011

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Clear Product RoadmapA broader product offering utilising ‘best of breed” elements from both Console and PortPlus, along with enhanced content from Onthehouse.com.au, is being developed. This moves us towards the delivery of a ‘one-stop-shop’ solution for real estate agents. Our aim is to consolidate and then improve on our market leading position in this area by offering a superior product and attractive value proposition to customers. To this end, I am pleased with the progress which our team has made is this endeavour.

Real Estate Agency Solutions Delivering ResultsThe Real Estate Agency Solutions division has achieved its statutory revenue forecasts for FY2011 as detailed in the prospectus. Furthermore, the division has achieved cost savings as budgeted and is progressing ahead of schedule in its process of operational integration.

We are indeed fortunate to have a proven and reliable earning stream upon which to build the other aspects of our businesses. The key indicators for this division are on track and we look forward to continued good performance.

Information and Analytic Services

Corporate ActivitiesActive Consolidation and Our 100 Day PlanOnthehouse Holdings Ltd actually acquired Console and Portplus on 27 May 2011 and I am pleased to say that our 100 day plan is progressing well. We have successfully implemented the requisite restructuring across the group after conducting the appropriate due diligence. We are also in the process of consolidating our technological infrastructure and as indicated earlier, delivering the benefits of product integration in consultation with a number of our leading clients.

Increased Investment in Residex to 50%We are pleased to announce that Onthehouse has entered into a formal agreement to acquire a further 40% interest in Residex Pty Limited which increases our ownership interest in Residex to 50%. The pricing for this transaction was contained in the Company’s prospectus.

The acquisition of Residex provides significant strategic benefits for us. Importantly, it facilitates the integration of substantially greater depth to the Onthehouse database from one of Australia’s oldest and most respected real estate data businesses. Residex has access to proprietary real estate information collected over its 20 plus year history and has developed one of Australia’s leading automated valuation methodology (AVM) technologies. As a standalone business, Residex has developed a high calibre and diversified customer base, including Government agencies, banks, mortgage brokers, real estate agents and developers.

We are confident that gaining access to Residex’s intellectual property and technology will greatly enhance our operating performance across the Group and in particular, within the Consumer Online division. Specifically, the onthehouse.com.au portal will benefit substantially from the application of the market leading Residex valuation solution which will provide an additional and value-adding tool for the Australian public to obtain further information on the value of their property.

Shareholder NewsISSUE 1 / / AUGUST 2011

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Attracting a Highly Talented TeamOnthehouse is pleased to announce a number of senior management appointments to the company.

Frank Swain joins us in a Sales Management capacity to enhance momentum in our agent awareness and engagement process. Frank has considerable experience in senior executive roles including Queensland State Manager and National Sales Manager with RP Data, and more recently assisting Pricefinder in a sales management capacity.

Jason Verstak has been appointed to the role of Marketing Manager. Jason has extensive real estate industry experience hav-ing held the positions of National Marketing Manager and National Strategy Manager for First National Real Estate for over nine years, an organisation with over 500 branch offices throughout Australia and abroad.

Emma DeMarco is an accomplished HR adviser with over 10 years’ experience working in both the IT and real estate indus-tries. Emma’s previous roles include HR advisory at an ASX-listed software development company and HR manager at one of the leading Real Estate agencies in Brisbane. Emma joins the team to align the HR strategy and people management functions of the company.

We also say goodbye to Craig Thwaites, the previous CEO of Console Australia. We wish Craig well and thank him for his efforts in shaping the success of the Console business in his three year term.

I look forward to providing you with further updates on the company and our on-going development as we progress with our focused business plan.

Sincerely,

Michael FredericksManaging Director & CEO

Onthehouse Holdings Limited ACN 150 139 781 Level 9, 348 Edward Street Brisbane QLD 4000p. 07 3243 4322 f. 07 3243 4300 e. shareholders@onthehouse.com.au w. onthehouse.com.au

Shareholder NewsISSUE 1 / / AUGUST 2011