Shareholders’ Council Comment On Fair Value

For Immediate Release
27 May 2004

Shareholders’ Council Comment On Fair Value Share Price

Fonterra Shareholders’ Council is pleased that independent valuer Standard & Poor’s CVC has signalled an improvement in the co-operative’s performance with an increase in the valuation range.

Yesterday Fonterra’s Board of Directors announced a Fair Value Share price of $4.69 for the 2004/05 season, the midpoint from within a valuation range of $4.34 and $5.05 provided by Standard & Poor’s Corporate Value Consulting. The share price is an increase of seven per cent on the previous season’s price of $4.38.

A key role of the Shareholders’ Council, as set out in the company’s constitution, is to appoint an independent valuer to determine the Fair Value Share Range.

Council Chair Tony O’Boyle said: “The Council has been monitoring the valuation process over the course of the last season to ensure that it remains fair, independent and transparent. Standard & Poor’s is a firm of international repute and the Council has confidence in their expertise.

“The rise in the share price reflects the valuer’s view that the performance of Fonterra has improved during this season. This is good news for shareholders and they can take heart in this announcement.”

ENDS

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