Release of New Certification Scheme Rules and Appointment of
JAS-ANZ Accredited Auditors

We would like to inform you of important changes to the Good Environmental Choice Australia (GECA) ecolabelling scheme. These changes are part of a series of measures we announced in September 2009 that would take place over the 18 month period to the end of March 2011.

GECA has adopted new Certification Scheme Rules which provide guidelines on how GECA, its auditors and licensees will work together from 1 April 2011. Implementation of these Scheme Rules represents the next major step in GECA's commitment to continuous improvement in its offerings and operations.

The new Scheme Rules apply to:

• new applications for certification to the GECA program
• applications for re certifications that are due but have not commenced by 31 March 2011
• applications for certification of additional products or other variations to existing licences from existing licensees.

The Scheme Rules provide transparent, robust and comprehensive rules for the operation of GECA's Environmental Choice Australia program.

The new Scheme Rules include the following key changes, effective 1 April 2011:

1. All enquiries about the program and new applications for assessment should be made in the first instance to GECA. An auditor may forward these if acting as an agent of the applicant, to assist those seeking, renewing or extending GECA certification.

2. Auditors for the GECA Scheme must be JAS-ANZ accredited 'Conformance Assessment Bodies' (CABs). NCS International (NCSI) is currently the only firm qualified to audit for the Scheme. We expect to announce the availability of other JAS-ANZ accredited CABs in the coming months.

3. GECA Licenses will not expire or require recertification every 3 years, but will remain valid while certain conditions are met. These conditions include regular surveillance audits and the potential for random audits.

More information can be found in the 'GECA Scheme Rules Frequently Asked Questions' on our website http://www.geca.org.au/the-scheme-rules.html

Auditing Arrangements

We are pleased to confirm that NCS International has obtained JAS-ANZ accreditation as a Conformity Assessment Body (CAB) against the GECA Scheme Rules. NCS International Pty Limited (NCSI) is a wholly owned subsidiary of the National Association of Testing Authorities Australia (NATA), and one of Australia's foremost independent third-party verification and auditing bodies for a range of national and international management system standards - including quality, environment, safety and product certification programs. Further information about NCSI can be found here. GECA have full confidence in NCSI's ability to satisfy the needs of existing and future licensees in the GECA program.

As announced earlier this year, we continue to work towards offering a panel of JAS-ANZ accredited auditors to assess products and services against the GECA Scheme Rules. We will inform licensees and the market as progress is made. We have endeavoured to take you with us on this journey via communications since late 2009, and we appreciate your continued support of and participation in GECA's program.

We acknowledge the contribution made to sustainable production and procurement in Australia by Petar Johnson, the founder of GECA and the Environmental Choice Australia program, and thank him and the Environmental Assurance team for acting as GECA's exclusive auditor to this point.

About GECA

GECA is the pioneer of ecolabelling in Australia, and is an organisation founded on best practice. Operation under the new Scheme Rules will allow us to maintain our focus on delivering a rigorous and effective ecolabelling program to help reduce adverse environmental impacts of products and services manufactured or purchased in Australia.

GECA is a member-based, independent, not for profit organisation funded by licensing fees. Every dollar earned by the program is reinvested in the program: to develop and update standards, to better manage and market the Environmental Choice Australia Ecolabel. There are no shareholders who personally benefit from the GECA ecolabelling program.

The commencement of the new Scheme Rules and the appointment of NCSI as the first of a panel of independent Conformity Assessment Bodies will strengthen the organisation's successful delivery of credible eco-labelling now and in the future, and help GECA in continuing to raise Australian purchaser and manufacturer interest in taking practical steps to contribute to environmental sustainability generally.