Mitsubishi Electric Sells To NZ Directors

MEDIACOM-RELEASE-MELCO-NEW-ZEALAND

It is announced that the shareholding of Melco New Zealand will change.

Local shareholders Ron Woodrow and Ken Lilley will purchase an additional 46% of the Company from Mitsubishi Electric, leaving the Company 95% in the hands of the New Zealand based investors.

Ron Woodrow will be the major shareholder with around an 84% stake, with Ken Lilley holding 11%. Mitsubishi Electric will retain 5% share of the Company.

Melco New Zealand will still continue to distribute Mitsubishi Electric products such as Air Conditioners, Dehumidifiers and Audio/Visual products.

Ron Woodrow, the Managing Director of Melco, sees the change as positive for all parties and is reported as saying:

"This represents a major change for both companies. While Melco New Zealand has always been one of the top performing Mitsubishi Electric subsidiaries in the world, in recent years our business has moved towards a mix of products from various manufacturers.

In addition to the Mitsubishi business, Melco has exclusive agency agreements with Aiwa and Thomson Multimedia- RCA and also distributes a wide range of products to the Computer and Electronics industries.

It is likely that Melco will retain all of its core business after the changes, but that an immediate re-evaluation of each area of the Company will be undertaken with a view to improve efficiencies and streamline operations. Mitsubishi Electric is very strong Internationally in Air Conditioning Products, and this is an area where we anticipate strong growth with our ComfortMaster and City -Multi range.

Mitsubishi Electric will still retain New Zealand's strongest distributor to represent its product range, without having to be involved in the day to day management of the business.

Melco New Zealand, in turn, will now be free to pursue a wide range of new opportunities, particularly in the field of Internet and E-Commerce related activities"

Mitsubishi Electric previously held 51% of the Company.

BACKGROUND INFORMATION

About Melco New Zealand.

Melco was formed by Ron Woodrow in 1981. Mitsubishi Electric purchases 51% in 1982, the Company has been a major supplier to the New Zealand Electronics market ever since and over the years has had major marketing successes which included taking the Mitsubishi Black Diamond brand of VCR and TV products, and more recently the Mitsubishi Oasis Dehumidifiers, to No 1 market share. The Company also continues to distribute a wide portfolio of other products from other brand names, including Aiwa, Thomson Multimedia-RCA, Microsoft, IBM, Maxtor and Seagate.

The Company has offices in Auckland, Wellington and Christchurch.

Melco was the first New Zealand Company to utilise the Internet to interact with its customers and dealers at the start of the Internet era in 1995, and its website at http://www.melco.co.nz has always been considered a leader in its field.

DIRECTORS/SHAREHOLDERS

PROFILES - MELCO NZ

Ron Woodrow * Founder

* Majority Shareholder

* Managing Director

Ron Woodrow founded Melco New Zealand in November 1981 (having left Thorn EMI) to pursue the distribution of Mitsubishi Video Recorders in New Zealand.

Mitsubishi purchased 51% of the Company in 1982. Although primarily founded on Consumer Product (see Company Profile), Melco New Zealand formed an Electronics business in 1985 and has been a leader in distribution of Computer peripherals and finished goods since this time.

Mr Woodrows interest in the Computer Industry lead to him purchasing ICONZ, a New Zealand based I.S.P. in 1995, and to further investments in Web ads and NZ City both high profile web based businesses formed between 1997 and 1999.

Recent events have now seen Mr Woodrow increase his holding in Melco New Zealand to 84% and further invest in Capital Network Holdings - a Wellington based business to Business to Business Fibre Connection Company.

Ken Lilley * Executive Director

* Company Secretary

* Shareholder

* General Manager, Marketing

Joined Melco in 1986 and has been a Director and Shareholder since 1992. Mr Lilley is largely responsible for the Consumer Division of the company and holds the portfolios of Executive Director and General Manager, Marketing.

With the recent introduction of new brands and the advent of E- Commerce, Mr Lilley is now at the forefront of the model by which the retailer and supplier can benefit from the virtual shop whilst still providing the required value that necessitates a "bricks and mortar" channel.

Mitsubishi Electric Corporation, Japan

Continues to hold 5% of Melco New Zealand.

Ends

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