April 11, 2002

Statement made by Sun Xinguo, Managing Director, CITIC Forests ( NZ ) Ltd

Contrary to speculation, CITIC does not have a back up offer in place should Fletcher Forests not execute the purchase of the assets of the Central North Island Forest Partnership.

CITIC was a party to discussions with the receiver over the future of CNIFP’s 190,000ha forestry assets.

However, it has no agreement with the receiver or knowledge of a backup agreement.

Ends