For immediate release 30 June 2003

Tranz Rail confirms budget figure

Auckland, New Zealand - Tranz Rail Holdings Limited {NZSE: TRH}

The Tranz Rail Board today confirmed the budget for the 2004 financial year, which records an EBIT of $48.0 million.

This follows on from a trading update on June 16 when the board first considered the preliminary budget for 2004.

This confirmed budget replaces all existing forecasts and estimates previously issued by the Company beyond the 2003 financial year.

ENDS