GENERAL: ALF: Allied Nationwide Finance Update

1 Jun 2010 3:46 pm

ALF 01/06/2010 GENERAL

REL: 1546 HRS Allied Farmers Limited

GENERAL: ALF: Allied Nationwide Finance Update

Allied Nationwide Finance Limited, a wholly owned subsidiary of Allied Farmers, today announced that it has completed its review of loan provisioning in preparation for the 30 June 2010 year end accounts. As a result of this review, and subject to audit, Allied Nationwide Finance expects to recognise total loan provisions of approximately $10.7 million for the second half of the year ended 30 June 2010.

Allied Farmers also advises that it has provided further capital support to Allied Nationwide Finance Limited, by way of an immediate increase in the existing credit support facility provided by Allied Farmers from $5 million to $10 million. The credit support facility provides cover for losses incurred by Allied Nationwide Finance on existing and future impaired loans.

The terms of the increase in the facility remain subject to final approvals which are in the process of being obtained.

ENDS

John Loughlin Chairman Allied Farmers Limited

Mobile: 027 542 2405 End CA:00195639 For:ALF Type:GENERAL Time:2010-06-01:15:46:52

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