MFS Pacific Finance Boosted by Major Shareholder

18 OCTOBER, 2006

MFS Pacific Finance Boosted by Major Shareholder

Auckland-based MFS Pacific Finance will have the backing of a leading Australian company from today when major shareholder MFS Limited (ASX: MFS) is admitted to the Australian sharemarket's benchmark index, the S&P/ASX 200.

Investment and financial services group MFS, with a market capitalization now around $A1 billion, will enter the S&P/ASX 200 effective from the close of Australian Stock Exchange trading on October 18, 2006.

"From this week our parent company will formerly rank among Australia's largest bluechip stocks, illustrating the strength of the company behind us and underpinning the tremendous support we can draw on in the New Zealand market," said Nigel Lane, MFS Pacific Finance Chief Executive Officer. "We have for some time offered additional security to New Zealand investors via the Put Option agreement we have in place with MFS Limited. This latest development will further underpin the high level of that security and also provide comfort to investors with the level of continual disclosure required of an ASX-200 listed company."

MFS Managing Director Phil Adams said entry to the S&P/ASX 200 showed MFS had become a substantial company not only in Australia but in all its markets.

"Entry in the S&P/ASX 200 was one of the major objectives we set for MFS in 2006/07," Mr Adams said. "It is extremely pleasing and gratifying to be part of the Australian sharemarket's benchmark index and we think it reflects all the hard work and effort that has gone in to building MFS over the years."

ENDS

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