GENERAL: ALF: ANF Trustee Notice

6 Aug 2010 5:00 pm

ALF 06/08/2010 GENERAL

REL: 1700 HRS Allied Farmers Limited

GENERAL: ALF: ANF Trustee Notice

Allied Nationwide Finance Limited - Trustee Notice

Attached is an announcement from Allied Nationwide Finance Limited, an Allied Farmers Group company. Allied Farmers will provide a further update on Monday 9 August 2010

For further information please contact:

John Loughlin Chairman Allied Farmers Limited

ALLIED NATIONWIDE FINANCE LIMITED

Allied Nationwide Finance Limited, part of the NZX listed Allied Farmers group, advises that it has today received notice from its Trustee, Guardian Trust that it considers that the company is in breach of one of its Trust Deed financial ratios. The board and management of the Company do not agree with this view.

Allied Nationwide's financial statements for the year ended 30 June 2010 are in the process of being audited, with this expected to be completed by the end of August. The company has however presented financial information to the Trustee as at 30 June 2010 which shows that the relevant Trust Deed ratio of total liabilities to total tangible assets was and is complied with. The company expects this position will be confirmed once the audit is completed.

The Trustee has provided the company 14 days to remedy this position and the Company will take the necessary steps to resolve this issue expeditiously.

Allied Nationwide continues to meet all its financial obligations, including repayment of maturing debentures. Pending resolution, the company has decided that it is appropriate to immediately suspend its prospectus. Allied Nationwide remains covered under the Crown deposit guarantee scheme up until 12 October 2010.

Allied Nationwide will provide a further update following discussions with the Trustee and other relevant parties. End CA:00198111 For:ALF Type:GENERAL Time:2010-08-06:17:00:25

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