GENERAL: ALF: ALF Market Announcement Preliminary Result

30 Aug 2010 1:47 pm

ALF 30/08/2010 GENERAL

REL: 1347 HRS Allied Farmers Limited

GENERAL: ALF: ALF Market Announcement Preliminary Result

30 August 2010

NZX WAIVER FOR PRELIMINARY ANNOUNCEMENT

Allied Farmers Limited's (ALF) financial year end is 30 June. Under Listing Rule 10.4.1(a) ALF is required to make an announcement of it s full year unaudited full year results not later than 60 days after the end of the financial year.

On 20 August 2010 Allied Nationwide Finance Limited (in receivership) (ANF), a wholly owned subsidiary of ALF, was placed in to receivership. As a result of that receivership, ALF is not in a position to provide its preliminary announcement within the prescribed period. ANF is a significant part of the ALF operations, with its gross assets comprising more than half of the group's total gross assets. ANF's receivership is a significant event that gives rise to a number of accounting and valuation matters which will impact on the presentation of financial information required to be contained in the Preliminary Announcement. These include:

- The consolidation of ANF: ALF is currently considering the accounting treatment and disclosure in respect of the consolidation of ANF at year end. ALF's initial view is that ANF is to remain consolidated into ALF's financial statements at 30 June 2010, but needs time to consider this further and to enable it to prepare supplementary pro-forma financial information disclosing the impact of excluding ANF;

- The valuation of ANF's assets and liabilities in the ALF group accounts: The ANF accounts and results to date have been prepared on a going concern basis. ALF is currently assessing what the impact is of the ANF receivership on the carrying value of assets. ALF will be engaging in discussions with the receiver as part of this assessment;

- The carrying value of ANF in ALF's accounts requires reassessment;

- Related party arrangements: There are a number of related party arrangements (principally in the way of the timing of obligations due from ALF to ANF) that need to be reassessed.

ALF is awaiting a preliminary view from the receiver on this issue; and

- Senior Banking Facilities: ALF is currently in discussions with its senior bankers, the result of which may need to be reflected in ALF's financial statements.

Once these matters have been properly considered by ALF, including consultation with its auditors, and advisors, the appropriate adjustments and disclosures will be included in the Preliminary Announcement. ALF expects to complete this work on our before 10 September 2010.

NZX Market Supervision has granted a waiver to ALF from compliance with Listing Rule 10.4.1 (a) on the following conditions:

- ALF provide to the market a statement regarding why it is that ALF cannot provide its Preliminary announcement to the market in the timeframe required by the Listing Rules; and

- ALF provide to the market the information required by Rule 10.4.2 not later than 5.00pm on 10 September 2010 This announcement is provided in satisfaction of the former condition. End CA:00199056 For:ALF Type:GENERAL Time:2010-08-30:13:47:45

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