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Capital notes issue fully subscribed

27 July 2004

Capital notes issue fully subscribed

Delegat's Group Limited's $35 million issue of unsecured, subordinated Capital Notes has been fully subscribed within the offer period. Demand was such that no public pool was required.

The Capital Notes carry a fixed interest rate of 9.75 per cent, with interest paid quarterly in arrears through to maturity in November 2007.

Westpac Institutional Bank was the Lead Manager and Underwriter of the issue. Graham Turley, Head of Debt Capital Markets New Zealand, says the issue was well received by the market.

The Capital Notes of Delegat's Group Limited have been accepted for listing by New Zealand Exchange Limited and will be quoted on the NZDX index upon completion of the allotment procedure.

Quotation and trading is expected to begin tomorrow, 28 July 2004.

Delegat's Group chairman Bob Wilton says the support for the Capital Notes issue is a significant step in the winemaker's strategic plan and underpins its global expansion.

"We are well positioned to capture the international demand for our award winning Oyster Bay„µ brand."

For the financial year to June 2005 Delegat's Group is projecting revenue of $60 million and a net profit after tax of $5.15 million, an increase on the forecast net profit after tax for the June 2004 year of $1.2 million and sales of $31.6 million.

The proceeds of the capital notes issue will be used for working capital and to repay bank debt, which will release pre-arranged funding for the construction of a $70 million winery in Marlborough next year.

The Capital Notes offer was the first opportunity in 50 years that the public has had to invest in the family owned winemaker.

Delegat's Group is committed to raising at least $40 million in new equity later next year.

ABN AMRO Craigs Limited was Co-Lead Manager and Organising Participant to the Capital Notes issue.

Perpetual Trust Limited is the Trustee for the Capital Note holders.

New Zealand Stock Exchange Limited accepts no responsibility for any statement in this announcement.

ENDS


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