Thursday 16th of September 2004

For Immediate Release September 16, 2004 Macquarie Global Infrastructure Fund II acquires interest in attractive UK gas distribution asset More Kiwis Sorting their Personal Finances The number of New Zealanders seeking information about how to manage their personal finances, and be better prepared for retirement, is increasing, Retirement Commissioner Diana Crossan announced today. The findings are from the Commission’s Annual Report, which is tabled in Parliament today. In the last 12 months there have been 488,000 unique visits, a 100 per cent improvement on the year before, to the Retirement Commission’s Sorted website, which helps New Zealanders work out how to get in control of their personal finances, to be better prepared for retirement. The Retirement Commission’s research also shows New Zealanders of all ages are seeking information about their personal finances, from as young as fifteen right through to people already in retirement. “It is heartening to see more New Zealanders than ever are seeking information on how to manage their money, and become better prepared for their retirement,” said Ms Crossan. The Retirement Commissioner believes the increase in the number of New Zealanders actively seeking information is due to the Commission’s innovative approach to reach New Zealanders with the ‘get sorted’ message. “Over the last year we have taken a more tailored approach by developing specific programmes for New Zealanders of different ages and situations. We have developed sections for students, parents, children, and those contemplating retirement. “This has been hugely successful, as people are obtaining information relevant to them in their situation,” said Ms Crossan. “Monthly visits to Sorted over the last year have doubled to more than 40,000 unique visits per month, and in June, we celebrated one million unique visits to Sorted. “This year we added two important programmes to Sorted, Kids & Money and 60plus. The colourful design of this year’s Annual Report is illustrated by the images from these two programmes. Both have been successful, with over 250,000 games played on the Kids & Money, and well over 4,000 calculations completed on the 60plus section,” said Ms Crossan. “We also strengthened our commitment to research this year by launching our Retirement Income Research Centre housed at www.retirement.org.nz. This focuses on retirement income policy issues and encourages the sharing and commissioning of research to contribute to policy development and monitoring. “It also promotes new articles, research, upcoming symposia and guest speakers. Downloads and links to relevant graphs, statistics and models are available online,” said Ms Crossan. The Retirement Commission’s Annual Report is tabled in Parliament today. For a copy of the Annual Report, visit www.retirement.org.nz. /Ends S H LOCK SETTLES HIGH COURT ACTION AGAINST PRIME FINANCE S. H. Lock (NZ) Ltd, one of New Zealand’s oldest trade finance and business financiers, has settled its legal actions against two of its former employees and their current employer, Prime Finance Ltd. The cases involved the two ex-employees taking S H Lock’s confidential information and then improperly using that information while employed at Prime. The proceedings, which were lodged in the High Court and Employment Relations Authority, included a claim for $1.2 million in damages and contained allegations as to the taking and misuse of confidential information by the former employees. The settlement, which was reached following mediation, acknowledged the role of two former senior managers employed by S H Lock, David Nicholson and Phillip Heath, in acquiring confidential proprietary information regarding S H Lock clients. This information was subsequently utilised in an improper manner by the pair, who left the company to join Prime which was opening an Auckland business finance office. Part of the settlement between S H Lock, Prime Finance, Mr Nicholson and Mr Heath, states: 1. “Mr Nicholson and Mr Heath acknowledge that they took confidential information belonging to S H Lock and improperly used that information, while employed by Prime Finance, in breach of their duties to S H Lock and apologise for their actions. This information included documents and computer records containing valuable client information. 2. “Prime Finance acknowledges that, in their employment by Prime Finance, Mr Nicholson and Mr Heath improperly used the confidential information belonging to S H Lock. Prime Finance regrets that this occurred. S H Lock maintains that Prime Finance did not fully and effectively address this use of confidential information. 3. “A payment has been made to S H Lock.” S H Lock Executive Chairman, Peter Goodfellow, said that the company was justifiably pleased with the outcome. “The settlement satisfies our intention to prevent the unauthorised taking and improper use of confidential information. S H Lock considers that the acknowledgements given and the payment made vindicate the decision to commence legal action.” Mr Nicholson and Mr Heath left S H Lock late last year. Following their departure, it became clear to S H Lock that confidential company and client information had been removed and in a rare action, the Employment Relations Authority required Prime and the two individuals to turn over five computers to the forensic accountancy firm McCallum Petterson. After carrying out one of New Zealand’s most detailed forensic computer record reconstructions, S H Lock and its solicitors Kensington Swan subsequently sought the deletion of over 100 files from these computers. “We believe this is a landmark case given the level of forensic analysis involved,” said Mr Goodfellow. “We acted immediately to minimise the effect on our long-standing client relationships and any impact on our operations from this improper use of our confidential information.” ENDS Issued on behalf of S H Lock (NZ) Ltd by Sorensen Group. For further information, please contact: Peter Goodfellow(09) 375 8500(0274) 850 780 OR Klaus Sorensen(09) 307 4670(029) 232 2576 Moody's Investors Service today upgraded the ratings of the AMP Group: senior debt guaranteed by AMP Group Holdings to A3 from Baa1 and AMP Life Ltd's insurance financial strength rating to Aa3 from A1, all with a stable outlook. A complete ratings list is provided at the end of this release. These actions conclude the review for possible upgrade initiated in June 2004, following AMP's announcement that it had successfully repurchased A$747 million of its offshore bonds in a reverse tender process, which reduced debt and gearing. Moody's says the rating upgrades reflect this fall in gearing to levels consistent with a single A rating -- as well as the good progress in AMP's debt reduction program, which was completed ahead of plan. Moody's has incorporated into its ratings its expectation that AMP will keep leverage around the current gearing ratio of 29%, even though excess capital is likely to be returned to shareholders in 2005. The upgrades also reflect the strong market position, financial fundamentals and future business prospects of AMP Life, the group's main operating entity. The rating agency notes that the group had successfully completed its demerger process by end-2003 and is now focused on preserving its position as a leading Australian wealth management company. Over the next reporting periods, it should sustain the strong results posted for 1H2004 as well as its positive retail cash inflows. Moody's believes AMP is well-positioned for further profitable growth in Australia. As indicated, it had successfully completed its debt reduction program. Debt has accordingly fallen to A$1.55 billion, resulting in the 29% gearing ratio on June 30, 2004. This situation has in turn significantly improved AMP's leverage profile and debt-servicing ability, which had already risen due to the demerger. Furthermore, Moody's notes that AMP Life is maintaining its leading market position with its well-capitalised and profitable franchise. Its position has been enhanced by the end of the need - as the group's main operating entity - to support its former UK businesses, along with its strong level of asset/liability management, lower cost base, and anticipation of ongoing growth in its profitable, lower risk new businesses. At the same time, these strengths are tempered by the more competitive nature of Australia's wealth management industry and the correlation between investment markets and growth/profitability. However, Moody's believes AMP will preserve its position, given its strong branding, diversified distribution system, lower cost base and focused management. Moody's adds that the stable outlook for the group's long-term ratings reflects the expectation that AMP's market strength will persist. It will also maintain profitable growth in wealth management as well as its current group-level risk profile. Factors that could prompt a rating upgrade include AMP's ability to sustain rising positive cash inflows over the next two years and the ongoing growth in profitability of its core financial services business, such that a significant rise occurs in operating margins over several consecutive reporting periods. Factors that could prompt a rating downgrade include a significant rise in gearing to 35-40%; meaningful reductions in group capitalisation or liquidity, and the emergence of competitive pressures that result in declining and negative fund inflows. AMP Bank's ratings remain under review for possible upgrade and their conclusion will be commented on in a separate press release. AMP Group, headquartered in Sydney, Australia, had total assets of A$70.2 billion as at end-2003. The following ratings were upgraded with a stable outlook: AMP Group Holdings Ltd -- Senior debt A3 from Baa1 AMP Group Finance Services Ltd -- Senior debt A3 from Baa1; Subordinated debt Baa1 from Baa2 AMP (UK) Finance Services plc -- Senior debt A3 from Baa1 AMP Life Ltd -- Insurance financial strength Aa3 from A1 The fund underlying Macquarie’s current retail infrastructure offer, Macquarie Global Infrastructure Trust II, has recently announced the acquisition of its first asset. Macquarie Global Infrastructure Fund II (GIF II) has announced it has acquired a share in the UK-based Wales and the West Gas Distribution Network (Wales & the West DN) from National Grid Transco. Wales & the West DN is a regulated gas distribution business comprising almost 34,000 km of gas distribution pipelines in Wales and the South West of England. Wales & the West DN, which operates in a mature regulatory environment, is expected to generate strong and sustainable cash yields for investors. John Rowley, head of Macquarie New Zealand’s Financial Services Group, said New Zealanders can access the GIF II fund through the retail "feeder fund", Macquarie Global Infrastructure Trust II (MGIFT II) which allows investors with as little as A$10,000 to access investments such as this major British gas distribution pipeline. The opportunity to invest in MGIFT II closes on September 30, 2004. GIF II’s investment in Wales & the West DN is as part of a consortium including Macquarie Bank, Macquarie European Infrastructure Fund, AMP Capital Investors on behalf of AMP Life, Canada Pension Plan Investment Board, Challenger Financial Services Group, Industry Funds Management and the Northwestern Mutual Life Insurance Company. Mr Rowley said the Wales & the West DN provided a good example of the high quality infrastructure investments that GIF II is seeking out globally as governments increasingly turn to the private sector for finance. "GIF II was created to invest in global infrastructure businesses that offer stable and predictable returns for our investors," Mr Rowley said. "The Wales & the West DN is just such a business – providing high quality assets with experienced management and staff that is expected to generate strong and sustainable cash yields over a long period of time. "New Zealand retail investors now have the opportunity to invest in this British business through Macquarie Global Infrastructure Trust II." Mr Rowley said Macquarie had been a leader in infrastructure investment in Australia since 1996 and is the only Australian infrastructure fund manager that provided retail investors access to offshore investments via unlisted investment vehicles. While New Zealanders can access domestic infrastructure assets, much of the early mover profits are simply not available anymore. Mr Rowley said the story was different overseas where momentum for infrastructure investment is building. "Governments throughout the world have reduced infrastructure spending during the past 30 years which has led to a massive infrastructure deficit. "Globally this deficit is estimated to be $A2,200 billion and this is just to catch up with what, in the past, would have been the provision of publicly funded and publicly owned assets." This deficit is expected to be a major driver of returns as the rapid growth in the demand for private sector funding continues. Specialist providers of infrastructure financing will be in high demand, and Macquarie is one of the largest infrastructure specialists in the world, managing more than 60 major infrastructure projects worldwide. Infrastructure, as an asset class, provides retail investors’ portfolios with a unique combination of: growth opportunities due to the expected growth in demand for private sector funding (unlisted infrastructure trusts in Australia have returned an average of 13.6per cent since inception (1996), compared to about 7per cent from international equities over the same period (1996 – 2003)); predictability of returns – the volume of gas used by British customers or the number of people using a tollroad, for example, is very predictable; and opportunity to access unique assets and diversify investment portfolio risk as infrastructure performance is not linked to other asset classes such as property or fixed interest. For more information please contact: Hamish Anderson Marketing Manager Financial Services Group Macquarie New Zealand Limited DDI +64 9 363 1435 Mobile +64 21 513 431 Email hamish.anderson@macquarie.com BLAST PUBLIC RELATIONS SWITCH: +64 9 376 8060 FAX: +64 9 376 8063 36 WILLIAMSON AVENUE PONSONBY, AUCKLAND EMAIL: georgia@blastpr.co.nz WEB: www.blastpr.co.nz TOWER Limited today announced that, following an internal strategic review of its business portfolio, the Directors are proposing spinning off TOWER's Wealth Management business in Australia (Bridges and TOWER Trust) through a separate listing on the Australian Stock Exchange, with existing TOWER shareholders retaining an ownership interest in that business. The Directors believe that as TOWER moves from a remediation phase into delivering profitable growth, the proposed spin off of TOWER's Australian Wealth Management business would provide a more focused strategy for both separately listed entities which should enhance shareholder value. The Directors have appointed Caliburn Partnership to review the proposal and the Company will report on the outcome of the review. ENDS For further information please contact: Olaf O'Duill Chairman TOWER Limited Tel: +61 419 336 608 Keith Taylor Group Managing Director TOWER Limited Tel: +64 21 436 833 Industry Report Released on Australia & New Zealand Real Estate Sector Melbourne, Sept. 13, 2004—Consolidation of industry participants, strong operating results, and increased debt usage were the main factors influencing the credit quality of Australian and New Zealand Real Estate-related companies in the past six months, according to a new report released by Standard & Poor's Ratings Services. “The consolidation of the Australian property trust sector continued over the past six month period, resulting in four rating actions with CreditWatches placed on two trusts yet to be resolved,” said Standard & Poor's credit analyst Craig Parker, director, Corporate & Infrastructure Finance Ratings. “Debt to capital levels for the rated Listed Property Trusts (LPTs) continued to increase, reflecting trust managers’ willingness to debt-fund acquisitions in a current low interest rate environment.” “The solid ratings assigned to the sector highlight that long leases, high-quality assets, robust operating strategies, and moderately conservative financial profiles continue to underpin the credit stability of these trusts, and more generally, speak to the credit quality of the rated Australian property trust sector” added Mr. Parker. "Industry Report Card: Australia & New Zealand Real Estate" is available on RatingsDirect, Standard & Poor's Web-based credit analysis system, at www.ratingsdirect.com. The report can also be found on Standard & Poor's public Web site at www.standardandpoors.com; under Credit Ratings in the left navigation bar select News & Analysis. Members of the media may obtain copies of the full report by contacting Felicity Chamberlain at (61) 3-9631-2143 or by E-mail at felicity_chamberlain@standardandpoors.com.