Rakon share purchase plan closed

10 April 2007:

Rakon share purchase plan closed

Rakon Limited ("RAK") announces the successful closure of its Share Purchase Plan (SPP),

Just over NZ $22 million was raised by the SPP with 5,456,006 new shares issued.

The proceeds will be used to fund continued expansion of Rakon's global business following the acquisition of the Frequency Control Products division of C-Mac MicroTechnology in February.

Eligible shareholders were able to purchase up to $5,000 of shares. The price per share was set at $4.05, the same as offered to institutional investors during the initial placement in February.

Brent Robinson, Rakon Managing Director said "When we made the offer to existing shareholders, we believed they would see this as a good opportunity to increase their investment in Rakon. We've put considerable thought into the company's growth and expansion plans. It is very pleasing for us to have such strong support from our shareholders for what we are doing."

Over 90% of eligible shareholders took part in the placement, with most subscribing for the maximum 1,234 shares on offer. Shares issued under the SPP are expected to commence trading on the NZSX on 11 April 2007.

ENDS

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