Auckland, 25 August 2005

Tenon Mill Converting To Geothermal Energy

Work is starting at Tenon’s Taupo sawmill site on converting Tenon’s wood drying kilns from natural gas to geothermal energy.

Under a contract recently signed with Contact Energy, Contact Energy will develop, own and operate a geothermal bore field and heat plant to supply geothermal energy to the Taupo site.

With a production date of early in the second quarter of calendar
2006, Tenon expects to achieve annual cost savings of approximately $2 million
(primarily from converting to cost savings over the use of natural gas).

ENDS