Update On Merger Approvals

7 February 2008

Update On Merger Approvals

The Commerce Commission has cleared the proposed merger between Cadmus Technology Limited (Cadmus, NZX Code CTL) and Provenco Group Limited (Provenco, NZX Code PVO).

Rick Christie, chairman of the proposed board, said both companies are pleased with the approval.

"We are encouraged by the Commerce Commission's clearance of the proposed merger," he said.

"We have been moving steadily forward on the detail of the proposed merger and are finalising shareholder documentation, including an independent expert report from Grant Samuel, and other approvals".

Mr Christie said he expected shareholder documents to be sent to shareholders of both companies by early in March, with a target completion date before the end of March 2008.

The Commerce Commission release by Chair Paula Rebstock said that the Commission was satisfied that the proposed acquisition would not have, or would not be likely to have, the effect of substantially lessening competition in any of the relevant markets

Mr Christie confirmed that both companies shared a vision of one merged company that combined highly-competitive technology, market share and access to capital and disciplined governance.

"There is a sound commitment at senior level through both companies to create a truly international technology company that is proud to be New Zealand owned and New Zealand domiciled. Late last year the two companies announced the composition of a board, to be confirmed if the merger is approved by shareholders of both companies.

Current Provenco chairman Rick Christie, will be an independent chairman. Peter Maire and Thiam Beng Lau represent Cadmus, Robert Bryden and Chris Morrison are from Provenco, and two additional independent directors are yet to be determined.

Mr Christie said the proposed combined operations would have a greater presence in Asia Pacific, with the two companies providing the scale needed for international growth.

ENDS

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