NewsletterMay 2006

Sunshine Coast Community Financial Services LimitedABN 12 100 576 261

Board of Directors, Sunshine Coast Community Financial Services Limited, 36A Maple Street, Cooroy, QLD 4563

Jim Kefford (Chairman), Peter Billinghurst (Treasurer/Secretary), Lew Brennan, Fred Broomhall, Len Daddow, Karla Hobson, Geoff Nicolls, Jay Pashley, Greg Reddaway, Bruce Smith, Louis Formosa.

This June, we will celebrate the 8th anniversary of the first Community Bank®branch opening in Victoria. What an impact the concept has made in these first years:

• Over 175 Community Bank®branches nationwide, partnering with 150 Bendigo Bank branches in the network

• 45,000 Community Bank®Company investors

• $3.8 million in Community Bank®profits distributed to local projects

• $3.5 million in dividends paid to local shareholders

And this is just the beginning!

Only about half of the network is reporting ongoing profits as the majority of the branches work towards maturity and profit.

The common denominator for the most successful Community Bank®branch in the Group is the full support of their communities.

• In Henty, NSW, a farming community of only 900 people, a $1.6 million community hall has just

opened. This is the work of Community Bank® EMPOWERMENT.

Other communities have received:

· New computers for a primary school

· Lights for a community football ground

· Safe driving courses valued at $1,000 each for every new driver in Maldon, Victoria

· A new St. John’s ambulance to assure a rural community has the best possible services for the residents

· Community bus for the elderly

These community grants are in addition to excellent dividends being paid to shareholders:

The Sunshine Coast group of Community Bank®branches is eagerly looking forward to paying our first dividend and awarding our philanthropic grants, but first we need an ongoing profit and that depends on YOU, our shareholders. Make that effort to move your banking accounts...do something for the good of your community and yourself at the same time.

Shareholder dividends and community projects abound

To increase awareness of Lead On, the youth engagement initiative of Bendigo Bank, Karen Miles, Executive Director of the Noosa Lead On, organised a luncheon hosted by John Goddard, Chief Operating Officer Queensland for Bendigo Bank Limited and Jim Kefford, our Chairman.

Attending were representatives of business, service clubs and of course, the Lead On student participants who told of their successes while participating with Lead On. A silent auction on the day also raised nearly $3,000 to support the efforts. Lead On, in just two years in Noosa,

has already worked with some 250 young people to engage them in meaningful work experiences including designing and producing a dress for Noosa District High School Principal, Cate McMillan, to wear to the end of year formal events last season.

Participants in the Lead On Program, Samuel Humbert and Emma Gibbs with Lead On Manager Karen Miles (centre).

Bendigo Bank supports youth

Seated just inside the door, our team leader in Cooroy, Jenny Sheriff, looks after all of your banking needs. Doonan resident, Jenny, is the mother of two children, aged eight and four, so there is no need to ask what she does in her spare time, though you will frequently see her around the area helping with community projects. She had 15 years of banking experience prior to joining us last year. Our Customer Service Officers are Gaye Smithard, Jenny Acworth, Emily Harwood and Lisa Sloman in Eumundi. Most days in Cooroy you will also see Graham Sandaver, an agricultural lending specialist and Michael Ansell, our Financial Planner.

Manager John Edds, of Tewantin Community Bank®Branch, has worked in the banking sector for 41 years in both rural and city locations. John and his wife Barbara moved to the Sunshine Coast last year. John spends his spare time kayaking, watching all codes of football and enjoying his three

grandchildren. Completing our team in Tewantin are Sue Bamford, Customer Relationship Officer, and Customer Service Officers Barbara Schilds and Jill Marshall.

Manager Judy Davis, of Marcoola Bendigo Bank Branch and Peregian Agency, adds another 35 years of banking experience to our team. She’s travelled the world and has worked in banking while in New Zealand, the USA and United Kingdom. Judy is passionate about the Peregian/Coolum/Marcoola area as she has two children who attend school and work in the area and she is committed to ensuring that her family has a future in the area. She is an avid supporter and past officer for Coolum District Netball Association and is currently Secretary of the Coolum Chamber of Commerce and a volunteer for the Coolum Kite Festival. Customer Service Officers Ros Love and Johanna Koepnick greet clients in Marcoola.

Our team

Positioning for growthWith the explosive growth of the Community

Bank®branch network, Bendigo Bank has enhanced our franchise even further by regionalising the overall management of the Bank and creating seven regions for Queensland where before there were three. This ensures that our professional team and our volunteer Directors receive Bendigo Bank management support from our new Regional Office in Maroochydore.

Garth Seymour, who has been our area Business Banker, steps up to a Regional Manager’s role. His former position has been filled by Geoff Power who will come from another Sunshine Coast financial institution and a second position has been created to be filled by Paul Hampson, currently a Bendigo Bank business banker in Cairns. With two in support, this very experienced team will be assisting our Managers to grow our Community Bank®branches and work with our clients.

Peregian Beach agency now open

We have opened our Agency in the Peregian Beach Pharmacy. Most banking services are available from the Agency each weekday morning. Manager Judy Davis from Marcoola oversees the facility and is available for visits with local businesses or residents to discuss lending needs. Enquire at the Agency. There is also a 24/7 ATM.

Opening this additional facility concludes our current building program. With five retail outlets and six ATMs, we now have a Community Bank®branch within easy reach of some 85,000 people.

The goal of the volunteer Board now is to assist our Managers to maximise this infrastructure and introduce new customers to the Community Bank®branch. We hope, you as a shareholder, will assist us in this work. The more we all collectively talk up our Community Bank®branches, the sooner we reach profit and return the first dividend to you. When the dividends begin and we also start distributing money back to community projects, you should naturally then see the share price rise as well. So, every account helps get us toward the goal.

We’re open longerAs excellent personalised customer

service remains a top priority with Our Bank we would like to remind you that we have extended banking hours in Cooroy, Tewantin and Marcoola, from 9.00am - 5.00pm Monday to Friday. Cooroy and Tewantin branches are also open Saturday morning from 9.00am - 12 noon. We’re there when you need us.

When should shareholders expect to see a dividend?

We’re tracking very well against the expectations set out in the prospectus issued when Tewantin and Marcoola joined our Company. Our business plan suggested it would be three years from the time we opened until the Company would be profitable and be in a position to pay a dividend. The business plan projects we will be in profit with reserves by June, 2007.

I have heard that some Community Bank®Companies are paying dividends in double digits, is that true?

Yes, several Victoria based Community Bank®Companies are indeed paying 15 and 16 cent fully franked dividends as they have become profitable. These examples are the early sites which started with the Community Bank®concept nearly eight years ago. With the support of our community, there is no reason our company will not grow to that level. Remember too, we pioneered the Community Bank®concept on the Sunshine Coast and our budgets have had to reflect a slower growth as we educate the people in our area to the concept of a community owned bank.

The Board seems to be constantly giving money to local charity organisations, shouldn’t we get a dividend first?

Shareholders will indeed be compensated FIRST when the Company reaches profitability. The money we have given out (over $22,000 in local grants) has been an incentive payment we have received from Bendigo Bank, for achieving certain growth levels. This money is designed for us to market our branches at a local level. The fact that we get excellent publicity from this effort actually shows that we are doing our job well.

Are members of the Board or staff available to speak with local organisations?

Absolutely, service clubs, sporting clubs, school groups. We are happy to discuss the benefits to anyone who will listen. The more people we can inspire to become a Community Bank®customer, the sooner we reach profitability and can later help those groups. A representative of our Board of Directors is happy to talk to your organisation about the company and the Community Bank®concept. Our branch Managers will cover off on specific banking and finance products and services. Contact the branch or call the Chairman on 0438 138 866 to organise.

The shares seem to be trading at a loss, why?

With over 1.7 million shares on issue, the most transparent method for us as a Company to manage the shares was to list our company on the Bendigo Stock Exchange (BSX) – a free and open marketplace. If someone has shares to buy or sell, they advise a broker of their requirements, BSX then works to complete the sale. At this point, those in need of selling shares seem to be willing to accept a loss in exchange for the availability of immediate cash. As we report a profit and dividends are paid, experience indicates that the share price should increase, particularly if the dividend paid is higher than the going rate for term deposits.

How can I learn the latest information about the Company?

The BSX web site (www.bsx.com.au) is quite comprehensive. From the home page select ‘markets’ from the selection bar, then down the left hand side, select ‘Community Boards’ this will lead you to a section called ‘Prices and Research’. From the drop down menu in the centre of the page, use the arrow to go down to ‘Sunshine Coast Community Financial Services Limited’. From there you can select from six topics that will update you on the latest trades, press releases, and demand for shares. You do not need a password or code for this site as it is reporting public information.

Does the Community Bank® branch offer all the services of other banks?

Absolutely and we add personal service at no extra charge. When you need to speak with your branch, simply dial the branch number and speak directly with the Manager or staff. Your Community Bank®branch offers term deposits, business and personal lending, credit cards, overseas transfers, money orders, travel insurance, internet banking, telephone banking and even a call centre if you do need help outside of our extended banking hours. Our partner, Bendigo Bank, is a $15-plus billion financial institution that has been in business for 148 years.

Can Community Bank® branch customers bank nationwide?

Bendigo Bank has a 329-strong branch network in every State of Australia and the ACT. The first Bendigo Bank branches are planned to open in the Northern Territory within the next 12 months.

In fact, your Bendigo Bank ATM card can be used throughout the world. Our Company operates branches in Cooroy, Tewantin, Marcoola and a Customer Service Centre in Eumundi and an Agency in Peregian Beach with ATMs at each location and another ATM at Noosa Harbour.

Frequently asked questions to the Chairman and Managers

www.bendigobank.com.au Bendigo Bank Ltd, Fountain Court, Bendigo VIC 3550 ABN 11 068 049 178 AFSL 237879. (BMP213) (17/05/06)

Cooroy 36 Maple Street

or phone: (07) 5447 7131Monday to Friday 9am - 5pm

Saturday 9am - 12 noon

Tewantin 105 Poinciana Avenue

or phone: (07) 5440 5289Monday to Friday 9am - 5pm

Saturday 9am - 12 noon

Marcoola 932 David Low Way (opp Surf Air)

or phone: (07) 5448 8582Monday to Friday 9am - 5pm

Share InformationShareholders looking to buy or sell shares in

Sunshine Coast Community Financial Services Limited can now do so on the Bendigo Stock Exchange. Sunshine Coast Community Financial Services Limited trades under the stock code SSC on the BSX. ABN AMRO Morgans Ltd in Noosaville are able to trade on the BSX. For any orders relating to Sunshine Coast Community Financial Services Limited please call Matthew Auger on (07) 5449 9511.

To sell shares, all we require is your share certificate, name, address, contact number and bank account details. To buy shares please call for an appointment and we can complete an account application with you.

Appointment of a new Director

Louis Formosa, Eumundi property developer and macadamia nut farmer, has been appointed to the Board of Directors the Company to represent the interests of that area. Louis brings an extensive business background to our Board and we welcome his volunteer contributions.

Eumundi Customer Service Centre, Lot 20 Memorial Drive, Eumundi, 4563 or phone (07) 5442 8119

Monday 9am to 12:45pm Tuesday Closed Wednesday 9am to 1:45pm Thursday/Friday 9am to 12:45pm Saturday 9am to 12 noon.

Tewantin Manager John Edds joins the coast guard in celebrating Community Bank® support of their boating efforts.

‘Dancing with the stars’ watch out... Piggy (excellently played by pharmacist Nicole Cave) celebrates the opening of the Bendigo Bank Agency in Peregian Beach while dancing with Chairman Jim Kefford.