Feltex Opens Books to Kiwi Rescue Bid

8 August 2006
News Release

Feltex Opens Books to Kiwi Rescue Bid

The bid to keep Feltex Carpets in New Zealand spearheaded by brothers Graeme and Craig Turner has come a step closer today with the Feltex Board agreeing to open its books to the pair.

Talks between the Turners and Feltex have continued this week, resulting in todays decision Feltex to give the green light to the Turners. Due diligence on the carpet business has begun, with both Graeme and Craig starting work on the books at the Feltex offices in Melbourne.

“Due diligence will enable a full analysis of the Feltex situation to be made in order to confirm our understanding of the Company's position and determine the final details of the bid, ” said Craig Turner.

“We are working to have due diligence completed as close to 21 August as possible. During this time we will also be finalising the terms of our proposal with the Board as well as working with other parties around this deal.”

"Feltex shareholders and staff have faced enough uncertainty and we will be looking to circulate our detailed proposal in late August or early September setting out the future we see for Feltex with their support," he said.

Graeme and Craig continue to be overwhelmed by support from shareholders and members of the public who want to see Feltex stay in Kiwi hands and returned to profitability.

“Feltex is an iconic Kiwi brand, like Sleepyhead. The business itself is a good one and we want to stop another "fire sale" of a New Zealand company,” Craig Turner said.

Under the Turner plan Feltex would stay in New Zealand, listed on the New Zealand Stock Exchange giving shareholders the opportunity to share in the company’s future.

ENDS

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