Burgerfuel Raising $15 Million To List On NZAX

Attention Business Editors
For immediate release
June 19th, 2007

BurgerFuel raising $15 million to list on the NZAX

New Zealand's fastest-growing gourmet burger chain BurgerFuel is putting its customers first as it plans to list on the NZAX after raising $15 million with an issue of 15 million shares at $1 each, with a one-for-five option to buy additional shares at the same price in 18-months' time. Minimum subscription is for $1000 worth of shares and options.

Funds raised from the issue will be used to fund the company's national and international growth aspirations, primarily in New Zealand, Australia, Europe and the United States. BurgerFuel currently has 19 outlets in New Zealand and one in Sydney.

The company, known for its irreverent approach to marketing its products, is also showing innovation in its fund-raising programme. It is:

* Giving its 70,000 VIB members (very important burger connoisseurs) first chance to subscribe for shares, giving them an exclusive chance to take up the share offer until June 25th when the prospectus is available to the wider public.

* Allowing people to subscribe for shares on-line through www.burgerfuel.com/shares.

* Providing on-line credit card purchase facilities for investors. BurgerFuel will be the first company to provide this facility in New Zealand and it is believed to be a first in Australia.

* Giving the issue a strong in-store presence with "IPO Share Ambassadors" working in all BurgerFuel stores from June 25th to assist potential investors.

* Using special software that will allow potential investors to view the prospectus on-line, ensuring it is down-loaded in a matter of seconds.

* Backing up its offer with an attention-getting, fun, advertising programme that will kick off from June 25th.

BurgerFuel shares will also be available through the normal sharebroking channels, with Grant Samuel acting as NZX Sponsor and Lead Manager.

The issue values the whole company at $60 million and VIBs and other public shareholders will end up owning a 26.7% shareholding, with the balance principally held by staff, associate directors and the promoters of the offer; the founder and managing director of the company Chris Mason and Executive Director, Josef Roberts. Both Chris Mason and Josef Roberts have entered into stand-still agreements running for 12 months in respect of their shares.

Chris Mason says the company has been investing heavily in scaleable systems, processes and the international protection of its name, brand and trademarks to give it the platform necessary to create an international brand that appeals to modern consumers.

"We have spent a considerable amount protecting our branding and trademarks in all key markets around the world.

"Initially we will be generating momentum by building and operating company outlets in Australia where we already have our first store. These stores will eventually be sold to franchisees to recoup the capital expenditure for redeployment in continued store development in that market.

"We will also be investing the money raised in exploring and entering other key markets around the world.

"We aim to be a real growth story and this issue is about giving New Zealanders the opportunity to be part of that."

He says BurgerFuel, now in its 12th year of operations, has been gearing up to give it the capacity to drive its expansion plans.

"We are looking to create shareholder value by building a high-value international brand in the growing fast-food market in which consumers are increasingly looking for high-quality, healthy and tasty food, rather than the standard offerings.

"We see this capital raising as an opportunity for New Zealanders to invest in a growth company that will in its initial stages be investing heavily ahead of its planned growth curve, at the expense of immediate dividends. Investors will also share in the growing brand equity of BurgerFuel.

"We believe the more we invest now the bigger we can become later on."

The company's board of directors is made up of independent directors Mr Peter Brook (Chairman), who is also a director of ING Property Trust; Mr Carl Howard-Smith, who is a director and legal adviser to Mainfreight and Mr Emmet Hobbs, who is Chairman of Hire Pool and a director of Mainfreight.

Chris Mason and Josef Roberts are also directors. Josef Roberts was the founder and CEO of the Red Bull energy drink business in Australia and New Zealand.

He sold those companies back to its Austrian parent company in 2002, after which he became a major shareholder in BurgerFuel.

Printed prospectuses will be available in all BurgerFuel stores on June 25th but can now be viewed online at www.burgerfuel.com/shares. The issue has just opened to VIBs and will be open to the general public on June 25th. It is scheduled to close at 5pm, Monday July 16th.

In line with the options available for NZAX listings, the prospectus does not include any profit projections. It says that BurgerFuel's sales rose 54% last year and are now at $16 million a year and growing.

Currently BurgerFuel serves over 35,000 burgers a week and has 20 outlets, with three more scheduled to open soon in New Zealand, including one in Queen St Auckland, and one planned for Kings Cross in Sydney.

BurgerFuel started in 1995 when Chris Mason opened the company's first store in Auckland's Ponsonby Rd.

ENDS