Tenon Receives Favourable Ruling From IRD

Auckland, 17 December 2004 - Tenon announced today that it had received a binding ruling from the Inland Revenue Department confirming that, if the Company’s proposed $321 million capital return and merger of the current two classes of shares (ordinary and preference) are approved by shareholders (at the Company’s upcoming annual meeting of shareholders to be held on 22 December 2004) and by the High Court, then the “available subscribed capital” of the two share classes would merge and be aggregated across the merged shares.