Tenon Mill Converting To Geothermal Energy

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

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