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Nathans Finance expanding in Australia and the US

Media Advisory
July 13 2006


Nathans Finance expanding in Australia and the US


- New Zealand finance company Nathans Finance NZ Limited (“Nathans”) is investigating expansion into the United States and Australia and intends to register finance companies in both these markets.

- The two overseas finance companies will raise funds on the wholesale markets in those countries.

- These funds will be principally used to help finance people in the US and Australia into the 24seven and Shop24 vending machine franchises being sold under the franchise programme of Nathans’ NZX-listed parent company, VTL Group Limited (“VTL”).

- Approximately 80 vending machine franchises are expected to be sold in the US for the 2007 year under the 24seven vending licensing programme, with an average loan value of $US180,000 each.

- In Australia VTL is selling around 15 vending machine franchises a year with an average value of $A200,000 each.

- Nathans loans to 24seven and Shop24 franchisees are made on a commercial arms length basis and must meet the requirements of the prudent lending guidelines adhered to by the company.

- The relationship Nathans has with both 24seven and Shop24 provides the company with a growing source of quality lending clients in the form of both new and existing franchisees, who require commercial loans to purchase or grow their business.

- Nathans had total assets of $155 million at December 31, 2005, with some 7,000 depositors.

- Nathans specialises in commercial lending and provides loans to a broad range of commercial entities. Nathans does not lend into the ‘higher risk’ consumer areas, such as vehicle and retail consumer lending.

Comment from Nathans Finance Chairman Roger Moses:

“The expansion overseas is designed to support the rapid growth of VTL’s 24seven and Shop24 franchising activities in both the United States and Australia.”

“Because VTL works closely with its franchise operators and is able to monitor their operations electronically on a day to day basis, Nathans Finance has not yet had to write off a single bad debt in its five years’ of operation.”

“Essentially this is a quality business base for Nathans, which we will be able to execute more effectively through the establishment of separate finance companies in the US and Australia.”

“Nathans Finance is playing a key part in facilitating VTL’s successful acquisition-based expansion programme in overseas markets.”

About VTL Group Limited

VTL Group Limited (NZX:VTL) is a global franchisor, with its franchised brands represented internationally including Australasia, North America, UK and Europe. VTL Group's franchise model is supported by a complete management system including its leading-edge proprietary technology and financing. The company's primary growth strategy is based around purchasing quality electronic vending equipment, including through acquisition, for 24seven or the manufacturing of its Shop24 units, installing proprietary control technology and building a network of franchised owner/operators.

ENDS

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