WSI And SFO

NEW ZEALAND WOOL SERVICES INTERNATIONAL LIMITED
MEDIA RELEASE – 16 SEPTEMBER 2011

SFO / WSI

New Zealand Wool Services International Limited (WSI) has been mentioned in articles in relation to investigations by the Serious Fraud Office (SFO).

WSI is not being investigated by the SFO.

WSI continues to operate as New Zealand’s premier scourer and exporter of coarse wools. It has just recorded its best ever trading year.

The SFO investigations are understood to relate to South Canterbury Finance having provided funding to two major shareholders of WSI. Those shareholders have been placed in receivership and the shares are being offered for sale. This has no effect on the business or operations of WSI.

WEL / WOOLCo Capital Raise

Many investors, farmers, and shareholders are confused by the capital raise announcements made by Wool Equities Limited (WEL) this week.

The following are key facts which potential investors need to consider;
• The WEL proposal is not a WSI initiative and the Board of WSI learnt about it at the same time as the public were informed.
• WEL does not have any agreement with the receivers who hold 64% of the company's shares for the purchase of that key stakeholding.
• A full takeover of the company would require 90% shareholder support.
• WSI has received much pressure from a number of its shareholders and other investors who are keen to avoid a Cavalier Wool Holdings wool scour monopoly to proceed with a WSI capital raise. This possibility is currently under consideration.

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