Fletcher Forests Foreign Exchange Hedge Closed

Fletcher Challenge Forests Foreign Exchange Hedge Closed

AUCKLAND, 16 August 2002 – Fletcher Challenge Forests announced today that it has closed a foreign exchange contract that it had entered into, to hedge the proposed acquisition of the assets of the Central North Island Forest Partnership.

A gain of approximately $1.8 million was realised on this foreign exchange transaction, which will significantly offset the costs incurred in relation to the proposed transaction.

The hedge transaction was a cancellable forward exchange contract to purchase USD 250 million at a fixed USD/NZD exchange rate of 0.465. The option was exercisable on 30 August 2002 with settlement on 27 September 2002.

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