Newcall Group To Spin-Off Technology Subsidiary

27 February 2004

NEWCALL GROUP TO SPIN-OFF TECHNOLOGY SUBSIDIARY TO SHAREHOLDERS

Newcall Group Limited (NZSE:NGL) announced today that its Board of Directors had approved the spin-off of its wholly owned subsidiary Newcall Technologies Limited to NGL shareholders on record at 27 February 2004. At the time of the spin-off, the company will be renamed Holly Springs Investments Limited (HSIL).

Each NGL shareholder will receive one fully paid HSIL share for each 100 NGL shares held on the record date. In total 1,795,010 shares will be distributed. HSIL will then cancel the shares held by NGL without consideration. The newly issued shares will initially have nil value thereby not creating a taxable distribution to NGL shareholders. It is anticipated that there will be long term benefit to the shareholders of HSIL as a result of the spin off.

While there are no plans to list the company on the New Zealand Stock Exchange, the company will maintain a share register and will provide limited transfer services to those shareholders who sell their shares privately. The company will not make a market in the shares.

The Board of Directors of Holly Springs Investments Limited will be Jim Bracknell, Chief Executive of Newcall Group Limited and David Stubbs, Independent Director of Newcall Group Limited.

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