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Fletcher Building - Upon Separation

Fletcher Building - Upon Separation From The Fletcher

Challenge Group- Selects Citibank For Nyse Listed Adr Program Fletcher

Challenge Energy Sold To Shell And Apache Corporation

SYDNEY, 28th March 2001./MediaNet International-AsiaNet/Citibank today announced that Fletcher Building Limited, New Zealand's leading building materials manufacturer and distributor, has selected Citibank as depositary for its American Depositary Receipt (ADR) program upon its separation from the Fletcher Challenge Group. The shares have begun trading on the NYSE under the symbol "FLB" (CUSIP #339305104).

Each American Depositary Share (ADS) represents 10 Fletcher Building Limited Shares, which trade on the New Zealand Stock Exchange (NZSE) and the Australian Stock Exchange (AUX). Citibank was the depositary for the Fletcher Challenge Group prior to separation.

Fletcher Challenge Building is one of three divisions of the Fletcher Challenge Group forming separate corporate entities under the Separation Transactions, effective today, becoming a newly created stand-alone publicly listed company. Under the Building Transaction, holders of Fletcher Challenge Building Shares will receive, in exchange for each Fletcher Challenge Building Share, one fully paid share of Fletcher Building Limited.

In a parallel manner, Holders of Fletcher Challenge Building ADSs will receive, in exchange for each Fletcher Challenge Building ADS, one fully paid ADS of Fletcher Building Limited.

As a result, Fletcher Challenge Building Shareholders and holders of ADSs will hold shares or ADSs of the new company, Fletcher Building Limited, respectively, and will cease to have any ownership interest in Fletcher Challenge.

Completion of the sale of Fletcher Challenge Energy to Shell and Apache Corporation is a condition of the Building Transaction. As part of the Energy Transaction, the assets and liabilities of Fletcher Challenge Energy will be transferred to Shell and Apache Corporation.

The consideration to be received by holders of both Fletcher Challenge Energy Shares and ADSs comprises three distinct components: cash; an entitlement for shares in Capstone, an innovative, US-based microturbine energy company; and a trade for shares in Rubicon, a new entity formed to focus on innovative business development.

"We are pleased to support Fletcher Building Limited as it enhances its United States market presence through the Separation Transaction," said Kurt Schneiber, Global Managing Director, Citibank Depositary Receipt Services. "This is a fine example of how ADRs can facilitate the company's goals and target US investors who wish to diversify globally within specific sectors." "Citibank's support has been excellent as we offer ADSs of our newly separated company to U.S. investors," said Michael Andrews, Interim Chief Executive of Fletcher Building Limited. "We are ready to strengthen our business through this listing on the NYSE as we strive to deliver the best value outcome, over time, to shareholders."

Following the Separation, Fletcher Building's business will consist of all the activities historically conducted by Fletcher Challenge Building including:

New Zealand's sole manufacturer of gypsum plasterboard - A significant participant in the New Zealand steel industry - A major producer of aggregate,cement and concrete products in New Zealand and South America - A wood panel manufacturer with associated value adding operations - An extruder of aluminium components for windows and doors - A distributor of a wide ranger of building materials in New Zealand - A substantial construction contractor in New Zealand, Australia and the South Pacific Islands - A major builder of residential homes in New Zealand

ENDS

Further information can be found at www.fletcherbuilding.com.

Citibank Depositary Receipt Services leads the market in bringing quality issuers to the US market and promoting ADRs as an effective capital markets tool. Citibank began offering American Depositary Receipts in 1928 and today is the market leader, widely recognised for delivering high quality, highly liquid programs to its customers.

Citibank Depositary Receipt Services is a part of Citibank Worldwide Securities Services (WWSS), a business within Citigroup's Global Corporate and Investment Bank. WWSS serves global issuers, investors and intermediaries through the world's largest and most acclaimed proprietary custody and clearing network, spanning 51 countries and territories. It currently provides securities services to more than 2,500 customers worldwide and has $4 trillion in assets under custody. WWSS is the industry's premier custodian of cross-border assets, top ranked global clearer and recognised leader in depositary receipt services, and agency and trust services.

Citigroup (NYSE:C), the preeminent global financial services company, provides some 120 million consumers, corporations, governments and institutions in more than 100 countries with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, insurance, securities brokerage and asset management. Major brands under Citigroup's trademark red umbrella are - Citibank, Travelers, Salomon Smith Barney, First Associates, Citifinancial and Primerica.

Ends

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