Rakon completes successful institutional placement

Rakon Limited (NZX: RAK) is pleased to confirm the successful completion of the institutional placement to raise NZ$45 million to fund the expansion of its Chinese manufacturing facilities.

The placement was well received by institutional investors in New Zealand, Australia, Asia and Europe, with 39.1 million shares to be issued at a price of NZ$1.15.

Rakon Chairman Bryan Mogridge commented "The Board is very pleased with the outcome and support from investors. This provides Rakon with a platform to move swiftly to capture the significant earnings growth opportunities we have available."

UBS New Zealand Limited acted as Sole Bookrunner and Underwriter for the institutional placement.

Settlement of the unconditional tranche of the placement is expected to occur on 28 September 2009, with the 20.3 million shares issued expected to commence trading on the NZX on 29 September 2009.

A special shareholder meeting to approve the issue of 18.8 million shares under the conditional tranche of the placement will be held on 12 October 20009. Subject to receiving shareholder approval, the conditional tranche shares are expected to commence trading on 16 October 2009.

Rakon will also offer eligible New Zealand registered shareholders the opportunity to subscribe for up to NZ$15,000 worth of shares through a NZ$20 million fully underwritten share purchase plan (SPP). The price of these shares will be the lower of the institutional placement price ($1.15), or 2.5% below the average end of day market price of Rakon share traded on the NZX over the period of 5 business days immediately prior to the closing date of the SPP. Further details of the SPP are expected to be sent to shareholders in the coming week.

ENDS

www.rakon.com

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