GENERAL: ALF: Allied Farmers Asset Valuations and Provisions

7 May 2010 2:32 pm

ALF 07/05/2010 GENERAL

REL: 1432 HRS Allied Farmers Limited

GENERAL: ALF: Allied Farmers Asset Valuations and Provisions

Allied Farmers is undertaking assessment work, including obtaining updated valuations, which will result in changes to the recorded provisional fair values of the remaining property and loan assets acquired by Allied Farmers from Hanover Finance and United Finance on 18 December 2009. This work is required as part of the process for preparation of the 30 June 2010 financial statements.

Allied Farmers advises that it has received updated valuations from bank-recognised independent valuers for the remaining acquired property assets, resulting in an aggregate net decrease in their fair values from $105.4 million to $87.5 million. Mr Alloway said "these are a mixture of higher and lower valuations, and reflect the inherent uncertainty of the current market for property assets of this nature".

Mr Alloway indicated that the value of the acquired loan assets is likely to be subject to an increase in impairment provisions. "This work is underway as part of the process of preparing the 30 June 2010 financial statements, and it is too early to determine the extent of the impairment".

ENDS

For further information please contact:

Rob Alloway Managing Director Phone 021 376 642 Email rob.alloway@alliedfarmers.co.nz End CA:00194667 For:ALF Type:GENERAL Time:2010-05-07:14:32:19

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