New nationwide Power Systems Division

Media Release

1st November 2006

Gough, Gough and Hamer sets up new nationwide Power Systems Division

New Zealand¹s insatiable appetite for power, coupled with a raft of severe power outages in recent months, has been instrumental in Gough Gough and Hamer setting up its own dedicated power division.

Backed by Caterpillar, the world¹s largest manufacturer of high-speed diesel engines and generator sets, Goughs Power Systems will operate in several sectors.

Jackson McAdam, Division Manager for Gough Power Systems, said the new division will cover the five areas of power generation - marine power, industrial power systems, diesel and gas generators, truck/bus engines and power generators for the expanding oil and gas industry.

³As well as having Caterpillar backing us, we believe there are several other advantages Goughs Power Systems will be able to offer.

³There¹s our association with Gough Finance, enabling us to put together preferential rates and customised finance solutions for customers, and there¹s our 16-branch network throughout New Zealand that can service all our products. Plus, we have specialist generator technicians based in Auckland, Wellington, Christchurch and Dunedin,² he said.

The Gough Group, of which Gough Gough and Hamer is a part, is a large privately owned New Zealand company employing 900 people that incorporates a diverse range of semi related businesses. From new and used equipment , material handling forklifts , truck and trailer accessories , earth moving equipment, through to custom engineering design and power generation.

McAdam believes that New Zealand requires approximately 600GWh of extra electricity every year and with transmission constraints at peak times, the power industry is struggling to keep up with demand.

³Diesel generators are such a viable alternative to ease some of the transmission bottle necks at peak times on the system.²

Purchasing generators is only the start, then there is the all-important back-up to ensure the generator will run when required.

³When the power went down in Auckland earlier this year, many companies that thought they had standby generators were left high and dry because the generators either failed to start, or ran for just a short period and then stopped. In the event of a power failure, for whatever reason, it is absolutely vital that the standby generator starts and runs when asked.

³To make sure consumers can count on this we have strengthened our service teams across the country as we know maintenance and load testing regularly is vital to ensure reliability.²

³Standby generators are machines you hope you never have to use, but when you do you want them to be reliable, well maintained and to do the job required,² he said.

As part of its ŒBuy the Iron get the Company¹ philosophy, for a limited time Goughs will carry out the first six months of preventative maintenance servicing, including S.O.S oil analysis lab tests on new standby generators free of charge.

³The Auckland power outage, plus the big South Island snow in June and the interruption to the gas supply in Wellington, show just how tenuous our power supply system is.

³During the snow there were parts of the South Island that were without power for six weeks and we know that the tremendous growth in certain geographic regions is putting increased pressure on the grids for those areas,² he said.

About Goughs Power Systems

Power Generation: Goughs Power Systems can supply and maintain electrical power generation (diesel and gas) to any power application throughout New Zealand. Goughs can supply only, or fully install, generators from 10 KW to 15 MW in single units or any multiple combinations with full synchronisation. Goughs has a full engineering team available to take any project from conception to completion.

Marine Power: Caterpillar sells more marine diesel engines over 200 bhp (150 bkW) than any other manufacturer in the world. These are specially designed for boats that range from 9 metres to 100+ metres. Goughs Power Systems also provides a full range of marine gensets for pleasure craft, mega yachts, fishing boats, salvage and harbour tugs.

On Highway Power: Caterpillar¹s powerful truck and bus/coach engine line-up leads the industry in technological advancement, low cost of ownership, long life-to-overhaul and overall performance. Support is never far away with 16 branches and 20 TEP¹s dealers nationwide.

Industrial Power: Whether building from new or simply repowering an existing machine, Goughs Power Systems can provide the engine - from water pumps to air compressors to overhead cranes,

Petroleum Power: Goughs Power Systems has put resources in place to service the growing oil and gas exploration and production industry in New Zealand - from a gas zoned generator to power a drilling rig to an engine only for a mud-pump application.

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