PRG Rights Issue to Fund Growth Strategy

FOR IMMEDIATE RELEASE
PRG Rights Issue to Fund Growth Strategy

Pacific Retail Group (NZSE: PRG) announced today that it intends in the near future to undertake a rights issue to raise additional capital to fund its ongoing growth and acquisitions strategy.

The Company intends to raise up to $20 million from existing shareholders. The Board expects to announce full details of the offering after a PRG Board meeting in the near future.

Peter Halkett, Chief Executive Officer of PRG stated that the cash issue has the full support of PRG's major shareholder, Cullen Investments Limited, and that the proceeds of the issue will be used to fund PRG’s growth strategy, including acquisitions.

"We are considering a number of interesting opportunities including our bid for Bendon, which now looks likely to proceed,” he said. “The additional equity will provide us with a great deal more flexibility."

At the company’s annual meeting, last September, shareholders authorised the issue of up to 15 million shares to institutional investors, refreshing a previous resolution. “The Board felt that a pro rata rights issue would better allow all shareholders to participate in new opportunities,” said Halkett.

ENDS

About Pacific Retail Group
Pacific Retail Group is an NZSE-listed retail company. The appliance, electronics, computer and homeware retailer has 99 stores and annual sales of over $400 million, trading through its Noel Leeming, Bond & Bond, Computer City, Living & Giving, Big Byte and finance activities through Pacific Retail Finance brands.

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