Feltex Offer Update

News Desk,

Turnerco presented to the Feltex Board on 8 September 2006 a viable rescue package for Feltex Carpets. The Feltex Board submitted this Offer to the ANZ Bank on 8 September 2006 and said it was prepared to recommend it to shareholders.

Our rescue package would see the company re-capitalised and refinanced to enable Feltex to remain listed on the NZX and trading as a New Zealand company.

Importantly the rescue package would save Feltex, its staff, shareholders and creditors from the ANZ’s alternative, which is to enforce its security.

Our bid is backed by our capital and expertise, some of New Zealand’s most successful business people and significant numbers of Feltex staff and shareholders all prepared to stand behind it.

We have consistently made our commitment to this rescue package clear to the Feltex Board and the ANZ Bank and have met all the Bank imposed deadlines in order to urgently secure the future of Feltex. This has included obtaining a funding facility from the Bank of New Zealand to refinance Feltex and become the company’s Bank going forward.

During our negotiations with the ANZ Bank over the past two weeks we have provided them with the approved Bank of New Zealand funding term sheet and confirmation of the Turnerco and other Core Investors’ commitment to providing or underwriting $63.5m of capital and mezzanine debt.

The rescue package provides Feltex shareholders with a choice about their future with the company and the option to share in any upside from an improvement in the company’s trading and financial positions.

The uncertainty over the company’s future and its funding is now leading to the gradual demise of Feltex. This is regrettable.

Should the ANZ agree to our proposal we stand ready to recapitalise Feltex, subject to the EGM vote.

It is critical to allow Feltex shareholders the opportunity to vote on the future of Feltex at the company’s EGM.

Regards
Graeme and Craig Turner

ENDS

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