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Tranz Rail responds to Toll comments

Tranz Rail responds to Toll comments

Auckland, New Zealand- Tranz Rail Holdings Limited {NZX: TRH}

In response to media comments attributed to Toll Holdings Managing Director Paul Little, Tranz Rail can confirm that there have been limited discussions with Toll Holdings regarding improvements they could make to their offer to make it more acceptable to Directors and shareholders.

The Tranz Rail board wants to reconfirm their recommendation that shareholders not accept Toll Offer in its current form.

Board Chairman Wayne Walden says, Tranz Rail understands the reasons why Toll needed to extend its offer and wants to emphasise that an extended offer period has no impact on the company's financial stability.

"The company's forward cash flow estimates, which are regularly updated, will see us through the seasonal lows and are currently tracking ahead of our forecasts.

"The Board of Tranz Rail is disappointed that Mr. Little has once again made misleading statements about the company's viability and near term prospects and can only assume that this is to generate momentum for their bid.

"The company is seeing the year on year benefits of its operational improvement strategy. On time arrivals for July 2003 was 84% up from 77% in July 2002. Volume on the network, has also shown a 3.3% uplift over the same period last year with an increase of 9% in the service sensitive Intermodal Traffic.

"The Board will continue to review any changes to the Toll Offer or any alternative offers with the best interests of shareholders in mind," says Mr Walden.

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