The net tangible asset backing of Australian Foundation Investment Company Limited shares at 30 September 2008 was $4.62 per share before tax (last month $5.07) and $4.01 after tax (last month $4.32).

The before and after tax numbers relate to the provision for deferred tax on the unrealised gains in the Company's investment portfolio. The Company is a long term investor and does not intend disposing of its total long term investment portfolio. Under current Accounting Standards, the Company is required to provide for tax on any gains that may arise on such a theoretical disposal, after the utilisation of brought forward losses.

Presentation to the Australian Investors' Association

Shareholder Meetings

Net Asset Backing Past 12 months