Elders Finance Continues To Produce Record Profits

Elders Finance Continues To Produce Record Profits

MEDIE RELEASE

September 21st 2002

Media Release For immediate distribution

ELDERS FINANCE CONTINUES TO PRODUCE RECORD PROFITS

Audited figures show net trading profit exceeds $14 million

Elders Finance Limited today announces an after tax operating profit of $14.1 million from normal trading activity, another record result for the privately owned finance company during the 2002 fiscal year ended June 30.

The audited results reveal that revenues grew by 60% to more than $57 million compared to $34.2 million for the same period during 2001. In addition, the net operating surplus after taxation, increased from $9.5 million to $14.1 million.

Hanover Group, Chief Executive Officer, Mr Kerry Finnigan believes that Elders Finance success could be attributed to several critical factors; a sound business strategy and a culture of disciplined corporate governance from an experienced and competent team.

"Our people have done an excellent job by running the business incredibly well with efficient internal processes and continually focussing on improving profitability - which has all contributed to cultivating a formidable financial base."

"Coupled with the present positive economic conditions, Elders Finance's sound management has clearly been influential in achieving the outstanding results."

Over the past twelve months, the company's asset base has substantially grown from $300 million to $490 million for the previous year.

Shareholders continue to demonstrate their support in the business by growing equity levels from $25.4 to $36.5 million.

Executive Director and shareholder, Mr Mark Hotchin says; "As well as maintaining high levels of equity, Elders Finance has maintained a strong balance sheet including over $50 million in cash reserves - which means good news to our investors."

"All in all, the numbers speak for themselves. Looking to the future, our outlook continues to be very positive, Elders Finance is committed to consolidating its performance by retaining our diverse lending portfolio and continuing to ensure the long-term security for our investors, "says Mr Finnigan.

Elders Finance is a member of Hanover Group, New Zealand's largest privately owned financial services group*. Hanover is due to disclose its end of year financial results shortly.

(*Source: 2002 KPMG Annual FIPS Report)

ENDS

RELEASE PREPARED BY MARKOM PR LIMITED FOR HANOVER GROUP LIMITED

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Background

ELDERS FINANCE LIMITED http://www.eldersfinance.co.nz/

Business subsidiary of Hanover Group, Elders Finance is 100 percent New Zealand owned and has been a significant part of the country's financial landscape for nearly two decades - tracing its history back more than a century.

The projects Elders Finance lends to covers a broad base of New Zealand's core sectors, mainly on short-term mortgage. These sectors include property, forestry, tourism, healthcare, agriculture and business equipment leasing.

As of June this year assets under management exceeded $400 million.

HANOVER GROUP LIMITED http://www.hanover.co.nz

Hanover Group is New Zealand's largest privately owned finance company* with more than 600 employees and assets of over $750 million.

The Hanover group of companies pursues a broad range of finance opportunities that are leveraged through the company's consolidated structure. This provides a diversified asset base and ensuing benefits for investors.

The group includes finance companies Elders Finance, Nationwide Finance, United Finance, Leasing Solutions, Elders Home Loans, Hanover Securities, FAI Finance, Australian Finance Direct, NZ Home Bonds and Onesource (formerly, strategic investments: Cogent Communications and U-Bix).
(Source: 2002 KPMG Annual FIPS Report)

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