MONTHLY: MHI: 6 months trading update to 31 December 2009

8 Jan 2010 8:32 am

MHI 08/01/2010 MONTHLY

REL: 0833 HRS Michael Hill International Limited

MONTHLY: MHI: 6 months trading update to 31 December 2009

Michael Hill International Limited 6 months sales to 31 December 2009

Note that these figures represent 5 months accounting adjusted sales results plus December preliminary sales figures prior to final accounting adjustments and are unaudited.

The following figures are in NZ Dollars Last Year This Year % Var

Australia same stores 144,276,823 153,294,030 6.2% NZ same stores 49,048,168 51,685,207 5.4 % Canada same stores 18,544,168 16,212,847 -12.6% Total same stores $211,869,159 $221,192,084 4.4%

Australia all stores 150,199,307 163,402,243 8.8% NZ all stores 49,584,508 52,322,875 5.5% Canada all stores 19,666,677 21,051,118 7.0% USA all stores 6,999,318 7,487,850 7.0% Total all stores $226,449,809 $244,264,086 7.9%

Exchange rates used for the 6 months: Australia 0.83 0.81 Canada 0.71 0.77 USA 0.58 0.72

The following figures are in local currency Last Year This Year % Var

Australia same stores AUD 120,100,614 124,423,041 3.6% NZ same stores NZD 49,048,168 51,685,207 5.4% Canada same stores CAD 13,175,001 12,528,868 -4.9%

Australia all stores AUD 125,067,591 132,620,181 6.0% NZ all stores NZD 49,584,508 52,322,875 5.5% Canada all stores CAD 13,965,554 16,280,176 16.6% USA all stores USD 4,091,302 5,357,415 30.9%

Comments Improved trading conditions during the key Christmas trading period helped the group lift "same store" sales from being flat by the end of the first quarter to 4.4% up by the end of the second quarter. All countries performed well and improved their "same store" trading performance from the first quarter. Retail conditions are still difficult in North America although we have seen some encouraging trends emerging in the second quarter.

The full half year operating results are due to be released to NZX on the 18th February, 2010.

R.M. Hill 7/01/10 Chairman

All inquiries should be made to Mike Parsell CEO phone +61 403 246655 End CA:00190006 For:MHI Type:MONTHLY Time:2010-01-08:08:32:59

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