Safe Effect appoints South African distributor

Western Australian braking systems company Safe Effect Technologies Ltd has announced the selection of South African group, Brakecore Supply Co. Pty Ltd, as its exclusive distributor of its Sealed Integrated Braking System (SIBSTM).

The Heads of Agreement allows Brakecore to immediately begin marketing SIBSTM products.

A comprehensive distribution agreement will be finalised within 90 days.

Safe Effect and Brakecore will commence by offering SIBSTM for Toyota Landcruisers and the soon to be released Toyota Hilux models. The development of SIBSTM variants for a range of other vehicles in use in South African mines is also likely.

Brakecore is a specialist and leading supplier of brake systems to the mining industry in South Africa servicing many of Safe Effect's Australian customers who also operate mines in South Africa, including BHP Billiton and Xstrata.

The market potential for SIBSTM products in South Africa is large due to government regulations that mandate the use of fail safe brakes in mining operations.

SIBSTM is an attractive product to South African mine operators because as well as meeting the fail safe requirements it does not have the speed limitations of alternative fail safe brake systems.

Safe Effect CEO Ken Johnsen said that Safe Effect was excited about the partnership with Brakecore to introduce leading edge Australian braking technology into South Africa.

THE FULL MEDIA RELEASE APPEARS BELOW

Safe Effect Appoints South African Distributor

Safe Effect Technologies Ltd is pleased to announce the selection of Brakecore Supply Co.
(Pty) Ltd of Ermelo, South Africa as exclusive distributor of the company's Sealed Integrated
Braking System (SIBSTM).

A Heads of Agreement has been executed this week by both parties detailing the key terms of
the distribution arrangement. The Heads of Agreement allows Brakecore to commence
immediately the marketing of SIBSTM products. A comprehensive distribution agreement will be
finalized within 90 days.

Brakecore is a specialist and leading supplier of brake systems to the mining industry in South
Africa servicing many of Safe Effect's Australian customers who also operate mines in South
Africa, These include BHP Billiton and Xstrata.

The market potential for SIBSTM products in South Africa is large due to government regulations
that mandate the use of fail safe brakes in mining operations. SIBSTM is an attractive product to
South African mine operators because as well as meeting the fail safe requirements it does not
have the speed limitations of alternative fail safe brake systems.

Safe Effect and Brakecore will commence by offering SIBSTM for Toyota Landcruisers and the
soon to be released Toyota Hilux models. The development of SIBSTM variants for a range of
other vehicles in use in South African mines is also likely.

Mr Ken Johnsen, CEO of Safe Effect said on his return from meetings with customers and
regulatory bodies in South Africa this week said, "Safe Effect is excited about this partnership
with Brakecore to introduce leading edge Australian braking technology into South Africa. South
African mine safety standards lead the world and we are pleased Safe Effect can assist our
multi-national and other customers in meeting these standards with a product that provides
additional cost saving and operational benefits."