CDL Investments Increases Its Dividend

21 February 2006

CDL Investments Increases Its Dividend After Another Solid Performance In 2005

Property development company CDL Investments New Zealand Limited (NZX: CDI) today reported its preliminary results for the year ended 31 December 2005. Chairman Mr. Wong Hong Ren said that the company had achieved an operating profit after tax of $9,123,000 on revenue of $24,526,000 and had sold a total of 173 sections in 2005.

Mr. Wong noted that while the total revenue was below what had been achieved in 2004, the decrease was attributable to the company’s adoption of the New Zealand Equivalents to the International

Financial Reporting Standards (NZ IFRS) during 2005. Shareholders funds had increased to $64,565,000 and the company’s total assets had also increased to $66,483,000. The Company also announced that it would be increasing its ordinary dividend by 0.4 cents a share to 2 cents per share. The dividend would be fully imputed and payable to shareholders on 31 March 2005.

Managing Director B K Chiu said that the results showed a solid performance but the figures did not tell the full story. “It is a question of when we can recognise revenue from the sales of our properties”, he said. “Under NZ GAAP the revenue would have been recognised when the contract became unconditional. Under NZ IFRS, it is recognised when the contract is actually settled. So while our NZ IFRS results show that our 2005 revenue has fallen by 20% under NZ IFRS, had we reported under NZ GAAP, we would have shown an increase of 52.9% on 2004. That is reflected in the number of sections the company sold in 2005”.

Mr. Chiu said that the company had begun 2006 positively. “CDL Land has made a positive start to 2006 and this is partly as a result of carrying over unsettled sales from 2005,” he said.

“Assuming that we are able to continue in the same vein throughout this year, we believe that the level of profitability seen over the last two years is achievable for the current year.” Summary of results:

• Operating profit after tax $9,123,000

• Operating profit before tax and minorities $13,556,000

• Total group revenue $24,526,000

• Shareholders Funds $64,565,000

• Total assets $66,483,000

• Net tangible asset value 30.7 cents per share

ENDS

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