NZHIA Press Release. Monday, August 20, 2001

The New Zealand Hemp Industries Association Incorporated is delighted with the Minister of Health’s announcement today regarding the issuing of some 11 licences to grow industrial hemp in New Zealand this year. The NZHIA also notes there are four or five licences to Deal in Cannabis Seed for the Cultivation of Industrial Hemp. The latter is required to actually import seedstock so the trials can actually go ahead.

This is an historic occasion and shows what can actually occur when Government and Industry work together for a common purpose said Mac McIntosh Chair/Research Team Leader, NZHIA. Now the difficult work really begins he added.

Many in the potential industry have desired to grow and manufacture with industrial hemp, some for nearly 12 years. This day is the reward for their persistence. All licencee's are aware that growing industrial hemp is a minor part toward a successful industry. Processing both in the field and in factory are critical components that will require significant Kiwi ingenuity and persistence to successfully resolve.

To facilitate this process NZHIA is seeking joint ventures with international companies particularly Fibrenova in Victoria Australia. There is Little doubt said McIntosh that there will be a certain amount of chaos this first season as lines of communication and supply are established and jockeying for positions occurs.

In an attempt to provide seestock in an orderly manner to those that desire them and have a licence the NZHIA has supported the formation of HempSeed Holdings ltd, whose stated objectives are:

· To facilitate the orderly importation of seed stocks of industrial hemp with an anticipated THC content of less than 0.35% for the purposes of supplying to licensed industrial hemp growers. · To facilitate the timely development of New Zealand Generic industrial hemp cultivars, to reduce reliance on offshore seed stock and create cultivars specifically to end user requirements. To research cultivar performance to ensure maximum economic advantage.

· To facilitate and provide technology based solutions for processing.

By Christmas 2001/02 NZHIA anticipate the first industrial hemp crops in over 40 years will be approaching harvestability.

Sincerely D.J. (Mac) McIntosh

· PS If you would like a picture of a Licence to Deal in Cannabis Seeds I can email one tomorrow provided the address where stored remains blank. (DJM) NZHIAI CONTACT DETAILS.

D.J.(Mac) McIntosh (Chair- Research team leader.) nzhemp@ihug.co.nz CEO HempSeed Holdings Ltd. email nzhemp@ihug.co.nz or hempseed@ihug.co.nz 25 Miles Crescent. Newlands. Wellington. 6004 Ph: 04 477-4336 Home Ph/Fax +64 4 938 4879 mobile 025 683-0663 Glenn Kelly (Secretary) hempster@ihug.co.nz PO Box 16209 Hornby CHCH. David Musgrave 03 6922-842 (Dep Chair-Waihi Bush Organic Farm - cold press Flaxseed, Borage and other plant, essential oils) djmusgrave@clear.net.nz Richard Barge (currently in England) (Treasurer-International fact finding/Cost analysis. ) richardbarge@hotmail.com Lindsay Newton 03 546-4387(Exec member/Engineering/Processing) admin@woolbloc.co.nz MA Freegard 07 888-9523 (Exec Member/Farming) Pirret@ihug.co.nz Tom Brown (Exec Member/Business/Technical) tjb@hemp.co.nz Katikati Bay of Plenty, New Zealand Phone: +64 7 549-3492 Mobile: +64 21-360-006 NZ Fax: +64 7 549-3496 NZHIAI MAIN Site :www.nzhia.com

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