Revenue Surges At Reinvigorated CER Group

Media Release
1 March 2007

Revenue Surges At Reinvigorated CER Group

Statement made by David Warrick, Managing Director, CER Group Limited

• Focused strategy delivering platform for future growth
• Strong momentum created in Certified Organics business
• New Zealand Nature Company performing ahead of projections
• Revenue growth generates Group’s first operating profit

CER Group Ltd (CER) has today announced its full year results for the year ended 31 December 2006, delivering 86% revenue uplift on the prior year and a strong platform for future growth.

CER is delighted that it has been able to deliver an operating profit for the first time in the Group’s history, at the same time as making significant marketing and infrastructure investment to deliver on the Group’s aggressive growth strategy.

The result comes from CER’s clear strategic focus of investment for sustainable growth, with both parts of the Group contributing to this promising result. We have invested in the development of new products and infrastructure, along with extensive marketing activities, and the annual result clearly shows the benefits of this approach in the revenue and gross margin growth.

The key success factors driving the result were performance from the New Zealand Nature Company ahead of the projections developed for its acquisition in 2005, and a marked upturn in revenues from the Certified Organics business.

New Zealand Nature Company sales revenue grew in both domestic and overseas markets, primarily North America. Certified Organics’ operation continues to concentrate on growing its overseas sales base and has been especially successful in Australia.

Key achievements for the year include Certified Organics’ first order of Bio Weedkiller in the Americas, worth over $100,000, and the relocation of New Zealand Nature Company to a new facility in Nelson, which provides more storage and improved distribution capacity to support the plans for significant sales volume growth.

During 2006 the Group has also successfully renamed as “CER Group”, providing a brand that can carry the business forward.

The Board considers that the Group’s prospects for 2007 remain strong, and sales in the first weeks of the new year show continue to show significant growth.

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