Lyttelton Port Company Market Update 03 December 2010

3 December 2010

Lyttelton Port Company Market Update 03 December 2010

Information is in the media suggesting that LPC’s insurance claim could be between $50m and $200m. However, the company wishes to advise that it does not have a clear view at present on the value of the claim.

The damage to the Port is extensive; however the Port was operational within hours of the earthquake and will continue to operate. We wish to assure our customers and our shareholders that Lyttelton Port Company will continue to operate and meet its customers’ needs while the repairs are being undertaken.

LPC is working closely with its insurers to measure the damage to the assets, and determining the appropriate next steps for reinstatement. The company has insurance cover for asset replacement to current standards, along with business interruption insurance.

We will continue to keep the market informed. The company is planning to update the full year forecast at the announcement of the results to 31 December 2010 in late February 2011. Due to accounting requirements in the recognition and timing of insurance proceeds and the related expenditure, the impact on the profit is extremely difficult to forecast at this time.

As advised at the Annual Meeting in October 2010, the company had a very strong start to the year with both Revenues and Net Profit after Tax for the first five months significantly ahead of the comparable period last year.

ENDS

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