GENERAL: DGL: DGL - Settlement of Disputes

30 Jun 2010 4:04 pm

DGL 30/06/2010 GENERAL

REL: 1604 HRS Delegat's Group Limited

GENERAL: DGL: DGL - Settlement of Disputes

DELEGAT'S GROUP LIMITED

Settlement of Disputes

Delegat's Group Limited (Delegat's) and Oyster Bay Marlborough Vineyards Limited (Oyster Bay) today settled the long running legal proceedings with Peter Yealands and Peter Yealands Investments Limited.

These proceedings involved: - an action by the Yealands interests against Oyster Bay and Delegat's in respect of PYIL's shareholding in Oyster Bay; - an action by Oyster Bay against the Yealands Interests to recover Oyster Bay's costs incurred as a result of the failed partial takeover offer by Yealands in 2005. - an action by the Yealands interests against Oyster Bay for compensation in relation to the failed partial takeover offer by Yealands in 2005.

Under the terms of settlement: - Delegat's will purchase all of Yealands' shares (433,816) in Oyster Bay comprising 4.82% of the issued capital of Oyster Bay at a price of $1.80 per share; - Delegat's will pay an allowance towards costs of $200,000 to Yealands to settle the proceedings; - Yealands will pay $150,000 plus GST to Oyster Bay to settle the takeover costs. Settlement will take place on 31 July 2010.

Managing Director of Delegat's Group Limited, Jim Delegat, said that in view of the costs and business disruption which would affect both Delegat's and Oyster Bay in defending and prosecuting both claims, the terms of the settlement were commercially and financially compelling. Mr Delegat said: "The settlement is in the best interests of the shareholders of both companies. Not only are significant costs avoided as a consequence, but more importantly the companies could now concentrate on their respective business without the damaging distraction and disruption of continuing legal proceedings".

Delegat's presently holds more than 50% of the shares in Oyster Bay. Its acquisition of the Yealands Oyster Bay holding under the settlement will increase its shareholding in Oyster Bay to 54.92%. That minor increase is permitted under the Takeovers Code.

ENDS For further information please contact: Andre Gaylard Chief Financial Officer Delegat's Group Limited Telephone +64 9 359 7300 End CA:00196742 For:DGL Type:GENERAL Time:2010-06-30:16:04:52

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