GENERAL: ALF: ALF Share Price Movement and Inclusion in the NZX50 Index

19 Feb 2010 12:31 pm

ALF 19/02/2010 GENERAL

REL: 1230 HRS Allied Farmers Limited

GENERAL: ALF: ALF Share Price Movement and Inclusion in the NZX50 Index

Allied Farmers Limited (ALF:NZX) has today received an email from NZX advising that it has reversed an earlier advice that its shares would be included in the NZX50 Index.

On Monday of this week the company received an email from NZX advising that its shares were to be included in the NZX50 and were advised that the market would be informed shortly. Subsequently that was included in a memo sent out by NZX to subscribers of the Market Indexation Memorandum Service.

We understand that this memorandum saw a number of institutions acquire shares in Allied Farmers Limited and the effect of this was to see the share price rise.

This morning the Company received an email reversing that earlier advice and a new Market Indexation Memorandum has been sent to subscribers of that service. This has seen Allied Farmers shares fall by over 10%.

Allied Farmers Limited has requested an explanation of this reversal from NZX. From our advice and our own modelling we are at a loss to see why Allied Farmers shares on all known criteria should not be in the index immediately. By our modelling Allied Farmers Shares would have easily entered the NZX50.

Allied Farmers will keep the market informed on correspondence from the NZX in relation to this issue.

For further information please contact:

Rob Alloway Managing Director Mobile: 021 376 642 End CA:00191402 For:ALF Type:GENERAL Time:2010-02-19:12:31:03

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