Insider trading inquiry completed into trading in the shares of

Sky City Entertainment Group Limited

The Securities Commission has undertaken a thorough inquiry into the circumstances of the trading of shares in Sky City Entertainment Group Limited in November and December 2002. The inquiry followed a referral from the New Zealand Exchange.

The Commission held hearings and received evidence from a number of witnesses. Legal advice was obtained on the prospects of the Commission bringing an insider trading action under section 18A of the Securities Markets Act 1988. Having considered the advice received, the Commission is not proposing to take any further action in this matter.