Fletcher Challenge Forests Rights Issue

Details of Proposed
Fletcher Challenge Forests Rights Issue

AUCKLAND, 12 October 2000 - Fletcher Challenge Limited today released further details of the proposed Fletcher Challenge Forests rights issue.

The proposed rights issue will be voted on by shareholders at the Annual Shareholders’ Meeting on 2 November 2000 (an ordinary resolution voted on by all shareholders).

The terms of the issue are:

 Fletcher Challenge Forests Shareholders will receive an entitlement to subscribe for two Fletcher Challenge Forests Preference Shares for every existing Fletcher Challenge Forests Share.

 The rights will be renounceable.

 The issue price of $0.25 per Fletcher Challenge Forests Preference Share will be payable on application.

 The Fletcher Challenge Forests Preference Shares will be issued within five trading days of the close of the offer.

 The Fletcher Challenge Forests Preference Shares will, upon payment for these shares, have the same rights (including as to voting and dividend entitlements) as existing Fletcher Challenge Forests Shares, except that they will rank in priority (as to the amount of their issue price of NZ$0.25 per share) to the existing Fletcher Challenge Forests Shares. The existing Fletcher Challenge Forests shares will be entitled to the next NZ$0.25 per share on liquidation and thereafter, the existing Forests Shares and the new Forests Preference Shares will share equally on liquidation.

 The Fletcher Challenge Forests Preference Shares will automatically convert ( on a one-for-one basis at no cost) into Fletcher Challenge Forests Shares on the fifth anniversary of their issue.

ENDS

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