Allied Farmers Settles purchase of Nationwide

Please find attached and below, a news release issued on behalf of publicly listed company Allied Farmers.

Allied Farmers Settles purchase of Nationwide Finance

Allied Farmers Limited today announced that the purchase of Nationwide Finance Limited from Hanover Group is unconditional. Settlement is scheduled for 1 May 2007.

The conditions of the purchase agreement, including the approval of the Allied Farmers Limited shareholders, the consent of the trustee for Nationwide Finance, and completion of the audit of Nationwide’s financial statements for the six months to 31 December 2006, were all satisfied as expected on or before 30 April. Over 99% of the votes cast at the Special General Meeting of Shareholders on 30 April were in favour of the purchase.

The purchase price will be confirmed on completion of final settlement accounts but is expected to be around $30.5 million to reflect changes in net asset value from 31 December 2006 up to the date of settlement.

David Bale, Group Chief Executive of Allied Farmers said; “We are delighted to have purchased Nationwide Finance and look forward to working with the management team to build on the strong performance of the company to date.

Nationwide Finance Limited is a diversified finance company providing property and commercial finance throughout New Zealand. It has total assets of approximately $158 million and equity of approximately $19 million. It was established in 1973 and currently operates from offices in Auckland, Wellington and Christchurch.

Allied Farmers also owns Allied Prime Finance Limited, a diversified finance company providing rural, property, commercial and consumer finance throughout New Zealand. It has total assets of $155 million and equity of over $20 million. Following the purchase of Nationwide, the combined financing activities of Allied Farmers will comprise $320 million of assets and close to $40 million of equity.

ENDS

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