$300 Million Dual Currency Debt Offer Launched

July 29, 2005

MFS Pacific Finance Launches $300 Million Dual Currency Debt Offer

Leading New Zealand finance company MFS Pacific Finance Limited has launched a new prospectus for an offer of $300 million of Secured Debenture Stock and Notes in both New Zealand and Australian dollars.

The innovative offer will target New Zealand residents with Australian dollar savings or cash deposits who want to invest in a secure facility backed by diversifying their investment into the growth of the Australian economy and the proven performance of the manager.

MFS Pacific Finance, which was established in 1999, is New Zealand’s third fastest growing finance company* with more than $140 million in funds under management and has undertaken this new offer as part of an aggressive growth strategy.

The latest offer is made up of NZD$200 million in Secured Debenture Stock and NZD$100 million in Notes with terms of six months, one, two, three, four or five years with interest ranging from 9 - 9.25 per cent for the Debenture Stock and 11 - 11.5 per cent for the Notes†.

MFS Pacific Finance Chief Executive Officer Nigel Lane said the dual currency offer was designed to give investors greater investment flexibility based on their own personal investment requirements.

Investors in the securities will continue to gain exposure to the Australian economy while providing choice in the currency in which they make their investment.

“There are a large number of New Zealand investors that hold cash deposits in both currencies and this product aims to provide them with greater opportunity as to how to invest their money.” he said.

Deposits will be predominantly invested in loans to various entities involved in the Australian property market through opportunities sourced from MFS Pacific Finance’s parent company MFS Limited (ASX: MFS).

MFS Limited (www.mfsgroup.com.au) was established in 2000 and is listed on the Australian Stock Exchange with a market capitalization in excess of $350 million.

The company has a AUD$2.7 billion asset portfolio made up of equity funds, income funds and a range of tourism related assets including the Falls Creek and Hotham ski resorts in Victoria, resort management and holiday group BreakFree, Peppers resort group and the Sheraton Mirage resorts at Port Douglas and on the Gold Coast.

BreakFree recently entered the New Zealand market with a substantial stake in the Queenstown resort industry. Peppers already has a number of five star retreats and resorts in New Zealand.

“Since listing earlier this year, MFS Limited has established itself as one of Australia’s most innovative fund managers and this offer by its subsidiary, MFS Pacific Finance, is all about giving investors the opportunity to enhance their income by drawing on the skills of its parent company,” Mr Lane said.

“Given the strong pipeline of opportunities provided by MFS Limited, the number of loans to our Australian borrowers will continue to represent the majority of the loan portfolio,” he said.

As part of the offer, MFS Limited and MFS Pacific Finance have entered into an agreement whereby the parent company stands behind the loan investments made.

This is the second combined Debt Securities prospectus issued by MFS Pacific Finance, but the first prospectus where multi-currency securities are being offered. MFS Pacific Finance currently has more than NZD$145 million in debt securities on issue now.

All interest rates are current as at 11 July 2005, and are subject to change and may be withdrawn at any time. Notes are Unsecured. The Secured Debenture Stock will be of equal ranking in all respects with other Secured Debenture Stock issued by MFS Pacific Finance from time to time and will be secured by a first ranking security interest, subject to permitted prior charges, over the assets and undertakings of MFS Pacific Finance. MFS Limited does not, nor does any other entity or person, guarantee the Debt Securities referred to in this media release.

The minimum investment is NZD$5,000 or AUD$5,000 and all investments must be made on the relevant application form. Interest will be paid quarterly in accordance with the current Rate Card, either by way of quarterly payment or compounding of interest.

For a copy of the latest Investment Statement in relation to this offer, you can contact MFS Pacific Investor Relations on 0800 200 468 or your financial adviser, or visit MFS Pacific Finance’s website at www.mfspacific.co.nz.

ENDS

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