Issued by Waikato Regional Airport Limited

NEWS RELEASE
March 19, 2009.

AIRPORT TO CALL UP $12m CAPITAL FROM COUNCILS

Hamilton International Airport is to call up $12 million in unpaid capital
from its five council shareholders.

Announcing this today, chairman of Waikato Regional Airport Limited, Jerry
Rickman, said the capital is to be paid in July.

This is the first capital call-up since the Crown¹s share in the airport was
sold to the shareholding councils in 1993 for around $3 million.

Since then the councils have seen the net asset value of the airport, with
its 266 hectares of land, increase to over $60 million.

Increased land holdings, runway extensions, car parking improvements, and a
$15.5 million terminal development over the past 15 years have all been
funded from operating profits, debt and some land sales.

According to Mr Rickman, the capital will be used to retire debt which is
currently at $16 million.

³Reducing debt levels is critical when we are facing a massive drop in
revenue from the suspension of our international business when Air New
Zealand withdraws transtasman services on April 25,² he said.

The new capital will also allow the airport company to meet its upcoming
obligations for the development of its new commercial and industrial estate,
Titanium Park.

The park covers 63 hectares and has just recently been rezoned from rural
and aviation use to commercial and industrial.

Titanium Park is about to go on the market in a joint venture with
McConnell Property, part of the McConnell Group, New Zealand¹s largest
privately owned property, construction and infrastructure group.

As 50 percent shareholder, the Hamilton City Council will be required to
inject $6 million of capital.

The Waikato, Waipa and Matamata Piako District Councils¹ share will be
$1.875 million each.

Smallest shareholder, the Otorohanga District Council, is to contribute
$375,000.

Directors of the airport company met last week to formally consider the
implications of Air New Zealand¹s decision to terminate international
services.

Taking into account the current economic environment and the financial
impacts on the airport, the board moved to formally resolve to call up the
unpaid capital.

Copies of the resolution have now been delivered to the councils.

Mr Rickman said the shareholding councils had made a joint decision in
September, 2004, to subscribe to unpaid capital to support airport
development.

A ³letter of comfort² from the shareholders effectively guaranteed bank
debt, allowing the airport to proceed with the terminal development.

³With Air New Zealand about to suspend transtasman services, this will have
a major impact on the airport¹s future financial sustainability,² he said.

³Given our current debt levels, the loss of revenues from international
operations has forced the board to rethink the airport¹s long-term
position.²

Mr Rickman said the board had no choice but to ask the shareholding councils
for capital.

³We have consistently kept the shareholders fully briefed regarding the
risks under various airport scenarios,² he said.

³Times are tough with the current economic situation but the aviation
industry is a cyclical one,² he said.

³This investment by the shareholders will allow the airport to continue with
its long-term plans,² he said.

Mr Rickman also signalled that the airport is continuing with the
designation process to secure the ability to extend the runway in the future
when required.

³The capital injection will ensure the airport is in a strong position to
take up opportunities that will arise when the economy picks up,² he said.

³The shareholders fully understand the serious outcome from Air New
Zealand¹s decision to terminate all transtasman flights from Hamilton.²

Mr Rickman confirmed that the airport company is still in discussions with
several low cost airlines.

But it was unlikely that a replacement carrier would enter the market
immediately after Air New Zealand exited transtasman operations, he said.

Meanwhile, the company has announced its financial performance for the six
months to December 30, 2008, reporting a $57,000 after tax operating
surplus.

This compared to $4.39 million for the same period in the previous year
which included property sales of $3.99 million.

Total revenues were $3.5 million compared to $7.7 million, and expenses of
$3.45 million against $3.09 million.

Mr Rickman told shareholders that international passengers had dropped 20
percent for the same period in the previous year.

This was caused by a 43 percent decline in Australian passengers travelling
to Hamilton and seen as a direct result of the low cost carrier, Freedom,
being replaced with a full service Air New Zealand product.

Eight percent fewer regional passengers travelled on transtasman services,
but with fewer flights available.

On the domestic front, the airport reported a four percent decline in
passenger numbers also with fewer flights.

Mr Rickman said this was the outcome from the recession as well as
significant airline competition out of Auckland.

The net value of the airport company, after liabilities, was reported at $60
million.

ENDS

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