Shareholders Approve Purchase of Eforce Ltd

Media Statement
23 February 2000

For immediate release

Shareholders Approve Purchase of Eforce Ltd

Eforce Ltd became a publicly listed company today when shareholders of Paynter Timber Group Ltd approved plans to purchase the e-commerce company and to divest itself of its timber assets.

At today's special meeting in Christchurch shareholders approved resolutions to restructure Paynter Timber and sell all of its shares in saw milling subsidiaries Lindsay & Dixon Ltd and West Coast Sawmills Ltd. It was also agreed to purchase all of the shares in Eforce Ltd, from Mark Fulton for $250,000 and shift the essential nature of Paynter Timber's business from timber to e-commerce.

Eforce Ltd offers New Zealand's first and only investment exposure to the e-commerce sector based around the infomediary business model. A consumer-based Internet portal that exists for the benefits of its community members, Eforce's combined purchasing power means members receive special offers on products and services.

Paynter Timber Chairman, Richmond Paynter, said the shareholders' decision to embrace Eforce begins a new and exciting phase in the company's history.

"We are now entering a new economy for the 21st century when the power of the Internet will turn business upside-down, allowing buyers and sellers to communicate more cheaply and faster than ever before in history. In this new economy, Eforce will be a leading brand, delivering goods and services to its online community of consumers."

A key focus of Eforce in the first 12 months will be the establishment of a strong and credible brand in New Zealand. In the United States, companies such as Yahoo, Amazon and eBay have achieved brand dominance by being the first to market with an attractive concept. Eforce is a new concept in New Zealand and the company aims to achieve brand dominance.

At today's meeting Paynter Timber shareholders agreed to the acquisition of Eforce on terms that include both a cash issue to existing shareholders as well as a public offer of share warrants.

A cash issue of up to 4,383,333 new shares in Eforce Ltd will be made available at 25 cents a share. Existing shareholders will have the opportunity to purchase one new ordinary share in Eforce Ltd for every six shares they hold in Paynter Timber.
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As part of the corporate marketing programme, individuals who are Eforce members will have a short-term opportunity to purchase warrants in the company. These will allow them to purchase a parcel of 500 shares through the website. Mr Paynter said the number of share warrants offered will depend on market conditions at the time of the offer.

An investment statement and prospectus providing full details of the cash issue and share offer will be issued within the next few weeks.

"This is an opportunity for shareholders to participate in a dynamic company with tremendous potential for growth," Mr Paynter said.

PTGL directors Don MacLachlan and John Strahl have both resigned. Vice-president of the American Internet communications company Qwest Communications, Mr Guy Cook, has been appointed as a director of Eforce. Mr Mark Fulton has been appointed as the company's managing director. Mr Fulton has extensive experience in Internet programming, finance, management and marketing both in New Zealand and internationally.

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For more information contact:
Bert Aldridge ph 64 4 4999-111 or (025) 241 0352
Rachel Catanach ph 64 4 4999-111 or (025) 322 784

Editor's note: A broker/media presentation about Eforce is to be held in Auckland tomorrow (24 February) from 10am until 11.30am at the Penthouse Suite, Somerset Grand Metropolis, 1 Courthouse Lane. Media are welcome to attend.

More information about Eforce can be found at www.eforce.co.nz.

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