Powerco Discussions With Eastern Bay Energy Trust

FOR IMMEDIATE RELEASE
FRIDAY 16 NOVEMBER 2001

Powerco Discussions With Eastern Bay Energy Trust

On 5 October 2001 Powerco and the Eastern Bay Energy Trust (EBET), the two largest shareholders in Horizon Energy Distribution Limited (HED), announced that they were discussing the possibility of making an offer for the remaining shares in HED. EBET holds 77.29% of the shares in HED, and 4.94% of the shares are held by Powerco.

Since this announcement thirteen people from the Bay of Plenty, and HED, have issued proceedings in the High Court against the Trustees of EBET seeking an injunction to restrain the Trustees from dealing in the shares and seeking various orders and a declaration from the Court.

These Court proceedings have made it difficult for the Trustees to finalise discussions between the two largest shareholders in respect of making an offer to all other shareholders.

A Court hearing to deal with the claims has been set down for 10 December. EBET and Powerco hope that an early decision will be available from the Court to remove the current level of uncertainty and to protect the rights and opportunities for all shareholders.

Barry Upson
Chairman
Powerco Limited

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