Tranz Rail Case – Berkshire and Ferenbach settle

News Release

31 March 2006

Tranz Rail Case – Berkshire and Ferenbach settle with Securities Commission

The Securities Commission has reached a settlement of the insider trading proceeding against Berkshire Fund III, a Limited Partnership, which was a former Tranz Rail shareholder, and Carl Ferenbach, a former director of Tranz Rail.

Mr Ferenbach and Berkshire Fund III have agreed to pay the full compensatory amount sought by the Commission, NZ$7,030,509.12, and NZ$350,000 by way of contribution to the Commission’s costs of the proceeding.

Mr Ferenbach and Berkshire Fund III have agreed to make these payments without any admission of liability. They consider they have defences to the Commission’s claims against them.

Mr Ferenbach and Berkshire Fund III have agreed, if requested, to provide the Commission with information relevant to the proceeding.

The settlement has been approved by the High Court. No judgment has been entered against Mr Ferenbach and Berkshire Fund III.

ENDS

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