NEWS RELEASE                                                              Embargo: for release: 7 January 2008



         Too much insulation is a poor investment
By installing unnecessarily high levels of insulation in Australian homes, building designers and
homeowners are wasting money that would be better invested in other household energy saving
devices.
Australian Cellulose Insulation Manufacturers Association (ACIMA) President, Laurie Moylan,
said in Melbourne today that the optimum amount of insulation for a home will vary depending on
a combination of local climate and energy costs.

ACIMA represents those cellulose insulation companies who supply more than 80% of Australia's
cellulose insulation---the world's most environmentally friendly insulation-- to the annual $650
million national retail insulation market.

Mr. Moylan said a 2007 research report on the diminishing returns of insulation by leading
Australian energy consultant, James Fricker, has modeled cost savings for insulation in various
Australian climate conditions.

"In an Australian cool winter climate such as Melbourne, Fricker's research shows that if installing
ceiling insulation to achieve the statutory minimum RT3.7 (i) saves $2000 per annum for heating,
further increased insulation to RT5.0 might save only an extra $43 per annum. Likewise, the
additional greenhouse gas emissions reduction would also be small, perhaps less than 0.3tCO2 per
year.

"Also, for an air-conditioned home in Brisbane, increasing your ceiling insulation level above the
statutory minimum of RT2.7 to RT5.0 might only save $100 per annum in air conditioning
electricity. And if walls are uninsulated and glazing unshaded, comfort improvements might not
even be noticed."

Mr. Moylan said if the money spent on increasing the ceiling insulation both in Brisbane &
Melbourne were instead spent on other energy saving devices, such as a water-saving showerhead,
the economic return to a homeowner is a much better investment.

"Fricker's research confirms that the correct choice of insulation for a dwelling is the one that
minimises the life-cycle cost for the particular energy and insulation costs at that location." (ends)
(¹). RT is the total thermal resistance which equals the system resistance plus the indoor & outdoor air film resistances.
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For further information contact:

Laurie Moylan (0418 359 454) or Kevin Herbert (0418 679 131)