NZ Nature continues Rapid Growth

Media Release

10 May 2007

NZ Nature continues Rapid Growth

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

·         Q1 2007 sales grow 25%

·         Driven by North American sales, continued domestic strength

·         Reflects impact of sales and marketing investment

CER Group Ltd (CER) has today announced that sales at its New Zealand Nature business for the quarter ended 31 March 2007 have grown 25 percent on the equivalent quarter in 2006.

First quarter sales topped NZ$867,000, compared with NZ$694,000 during the first quarter of 2006,

Despite the challenges created for the business by a high New Zealand Dollar, overseas sales soared by over 27% in this period, primarily coming from growth in the North American market.

This overseas growth was complemented by a 20 percent uplift in domestic sales.

This strong result demonstrates the benefits that New Zealand Nature has received from its acquisition by the CER Group and, in particular, the CER Group’s emphasis on investing in sales and marketing. The company is now also reaping the rewards from improved quality control put in place in 2006, which is being reflected in increased customer re-order rates.

This sales result comes on the back of the CER Group announcing a Share Purchase Plan for current shareholders, which aims to raise up to NZ$3.5m. The capital raised will be used to further fuel the rapid development and growth of the CER Group.

CER also recently declared its first annual operating profit and has appointed Mr. Robin Levison to its board to strengthen its capabilities for appraisal and integration of selected potential acquisition opportunities.

The businesses within the CER Group have significant momentum, and the corporate structure has the necessary expertise to deliver an increase of pace in the operations and performance of CER.  I have every confidence we are excellently placed to deliver further growth and increase shareholder value.

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