Carter Holt Harvey Builds Regional Leadership

640 Great South Road Telephone 64-9-262 6000

Manukau City Facsimile 64-9-262 6099

Private Bag 92106

Auckland, New Zealand

Carter Holt Harvey Continues To Build Its Regional
Leadership Position

Carter Holt Harvey has agreed to acquire Norske Skog’s Tasman kraft pulp manufacturing business at Kawerau for US$130million (NZ$311million).

An additional payment of up to US$10 million will become payable depending on global pulp prices over the next two years.

Carter Holt Harvey CEO, Chris Liddell, said this is a significant acquisition for the company and further confirmation of Carter Holt Harvey’s commitment to regional leadership.

“We’ve consistently said we will invest the COPEC funds at the right time, on the right opportunities and at the right price. This acquisition is a significant and tangible demonstration of this strategy.

“We look for opportunities where the industry has attractive growth options, where a business is performing well, and where we can add value because of our expertise. Tasman Pulp delivers on all of these.”

Kent Blumberg, Chief Executive for Pulp and Paper, said the market for bleached softwood kraft pulp is very attractive, and one where radiata pine has a natural advantage.

“This business has a strong customer base in Australasia and demand in Asia is growing significantly. Asia is a major importer of softwood pulp, as the region grows mostly hardwood. In addition, pulp based on radiata fibre has benefits in niche innovative products such as fibre cement.

“This gives New Zealand producers a real market advantage and we’re excited about the potential to add value through customer focused innovations.”

The company also expects to gain real synergies between Kinleith and Tasman Pulp both operationally and in marketing, and with Norske Skog on the Kawerau site.

“Not the least of these,” said Mr. Blumberg, “are product development opportunities that will come from the combined expertise of both pulping operations. We look forward to bringing our customers enhanced products and services over the coming years.”

With this acquisition, Carter Holt Harvey will own two of the lowest cost pulp producers in the world.

Norske Skog acquired the integrated Tasman mill, comprising the kraft pulp and newsprint operations, from Fletcher Challenge’s Paper business in July 2000. Tasman Pulp is situated in Kawerau, in the Bay of Plenty, New Zealand and its annual production capacity is 285,000 tonnes.

The acquisition is conditional upon receiving final ACCC clearance and completing final due diligence. It is anticipated that these conditions will be satisfied during the course of this week. The acquisition will take effect on 30 April 2001.

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For further information please contact:

Dellwyn Stuart Telephone: +64 9 262 6018

General Manager Communications

Jim Whineray Telephone: +64 9 262 6053

Manager Investor Relations

Invitation

Conference Call for Media and Analysts

At 11.30am New Zealand time, Monday 26 March, there is an audio conference call on this announcement with CEO Chris Liddell.

To dial into the conference call please take the following steps;

In New Zealand

Dial: 083032, wait for the voice prompt then dial the 6 digit PIN# 726329, followed by the hash key

International

Dial: +64 83 083032, wait for the voice prompt then dial the PIN# 726329, followed by the hash key

You will then hear a little bleep, which means you are connected to the call.

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