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Life Pharmacy Market Update

Life Pharmacy Market Update

Life Pharmacy Limited (NZX: LPL) today issued an update to the market, prior to the Company’s Annual Meeting to be held next week.

Chief Executive Tim Roper said that the Company projected reporting a net profit after tax of $2.08 million for the twelve months to 31 March 2006.

Associated Life Pharmacies are expected to record aggregate revenues of $96.5 million, and deliver an EBITDA of $8.7 million, which would return dividend income to the Group of $2.1 million (representing 49 percent of the operating profits of 17 Life Pharmacy stores and one Unichem branded pharmacy).

Based on these projections the Company expects to be able to declare a dividend of 4.43 cents per share for the 2006 year.

Mr Roper said that the Company was issuing this update in order to meet its obligations to provide continuous disclosure and to have meaningful discussions with shareholders and analysts over the next week.

“The founding transactions and subsequent compulsory acquisition of shares were completed in March 2005,” said Mr Roper. “With that behind us we are able to realistically assess our performance expectations over a full years’ trading.”

Chair Elizabeth Coutts said that Life Pharmacy had strong operating net cash inflow and an investment fund of $1.0 million. “Funds will be maintained and leveraged to meet short term investment needs,” she said.

The Company has a corporate banking facility in place with the National Bank to support potential acquisitions, cover a seven-year refit cycle and provide a $2 million overdraft facility. The arrangement will be presented to shareholders for consideration and approval at the Company’s Annual Meeting.

Life Pharmacy has reported a parent company net profit after tax (NPAT) of $582,000 for the twelve months ended 31 March 2005. The Company recorded revenues of $2.18m for the period. The Company will pay shareholders a dividend of 1.23¢ per share (fully imputed), with the payment date set for 2 September 2005. The dividend payout will be covered from associated company dividend receipts.

About Life Pharmacy

Life Pharmacy Limited owns the Life Pharmacy brand and holds a 49 per cent shareholding in 17 pharmacy companies, representing 17 of the 21 Life Pharmacy stores operating throughout New Zealand. Stores are located in Auckland, Hamilton, Bay of Plenty, Wellington and Christchurch. Aggregate underlying turnover of all Life Pharmacy stores was over $100 million in 2005.

The Life Pharmacy brand and concept was established in 1995 to create a retail offering that was readily differentiated from existing pharmacy chains.

ENDS

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