Skellerup Holdings Ltd – Rights Issue announced

13 February 2008

Skellerup Holdings Limited – Rights Issue announced

Skellerup Holdings Limited (”Skellerup”) today announced a 1 for 4 renounceable rights issue of ordinary shares to all shareholders, at an offer price of 80 cents per share.

The net proceeds of the offer will be used to reduce Skellerup’s bank debt as part of the previously announced restructuring programme. The principal objective of the programme is to increase Skellerup’s focus on the manufacture and distribution of technical polymer products, where it has considerable in depth knowledge, manufacturing capability and distribution networks.

The issue is to be fully underwritten. It has the support of major shareholders, and will be sub-underwritten by several of them and other parties, on terms that are concessionary to the company. Waivers have been granted by NZX to permit this sub-underwriting, and details will be provided by separate announcement.

Shareholders who do not wish to participate in the issue can sell their rights, which will be separately tradable on the NZSX. In addition, the issue will incorporate an over-subscriptions facility. This will allow shareholders to submit applications for shares in excess of their rights entitlements, which will be available in the event that there is a shortfall in applications. Any shares not placed by this facility will be allotted to the underwriters.

The record date for rights entitlements is 27 February 2008. Rights trading and the offer period are anticipated to commence on 28 February 2008, and rights trading to cease on 25 March 2008. The offer is anticipated to close on 27 March 2008.

Skellerup’s half year results to 31 December 2007 are expected to be announced on Friday 22 February 2008.

ENDS

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