CER Group Businesses Both Trading Profitably

August 8, 2007

CER Group Businesses Both Trading Profitably

- New Zealand Nature revenue on track for $6 million for full year

- Certified Organics receives important US and Australian registrations for herbicide products

Statement based on presentations made by the Chairman, Dr Wayne Cartwright and Managing Director, David Warrick, at CER Group’s annual meeting in Auckland on August 6

The combined trading operations of publicly listed CER Group recorded an EBIT of $393,000 for the six months ending 30 June 2007, an increase of 79% on 12 months previously*.

Sales for the six months from its two businesses, Certified Organics and NZ Nature, were up 10% to $2.78 million.

“Both businesses made major progress in the first half of the financial year, and are on track to record their best-ever performances, said Chairman Dr Wayne Cartwright.

“NZ Nature increased EBIT by 23% to $318,000 and sales by 24% to $1.8 million.

“If sales volumes continue on present trends, revenue for NZ Nature for the full year will be in excess of $6 million.”

Currently, NZ Nature is achieving 43% of its sales offshore, with its major markets being Europe (19%) and North America (17%). More than two thirds of its sales are of products made from sheepskin, silk, possum and merino.

The business has appointed direct marketing specialist Steve Butler to head its operations, and to drive further international growth.

“In addition to recording its first trading profit of $75,000 against a loss of $40,000 last year, Certified Organics has made a major break through in achieving registrations in two critical international markets,” said Mr Warrick.

“Australia has approved ‘first stage’ commercial agricultural registration of our patented herbicide product, and we have also received United States Stage 1 EPA registration for indoor and non-food use.

“Both registrations open up significant and new markets for our organic biological control products.

“In Australia, the South Australian Government has reconfirmed is branched broomrape eradication programme, with a sales value of up to $700,000. In the United States we are targeting to introduce product to this market in late 2007 or early 2008.”

* CER Group Limited is preparing its unaudited half year result for release to the market shortly. The trading results of the operations provided in this statement do not include Group corporate costs.

ENDS

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