GENERAL: NPX: Announcement re action by NZ Securities Commission

14 Apr 2010 8:30 am

NPX 14/04/2010 GENERAL

REL: 0830 HRS Nuplex Industries Limited

GENERAL: NPX: Announcement re action by NZ Securities Commission

NZX/ASX release 13 April 2010

Announcement

The attached release was issued by the New Zealand Securities Commission at 7.30 pm New Zealand time today.

The board of Nuplex Industries Limited is very disappointed that the New Zealand Securities Commission has decided to issue proceedings against the company and its directors in respect of the timing of Nuplex's disclosure to the market early in 2009. This matter relates to disclosure in connection with discussions between the company and its banks to review one of its debt covenants. The company and its directors deny that there was any breach of continuous disclosure obligations and will defend themselves vigorously against the Commission's allegations. The company's negotiations with its banks were successful and led to them loosening the senior debt cover ratio (SDCR) following the company's results announcement for the half year to 31 December 2008. The company takes seriously its continuous disclosure obligations and remains of the view that it has properly complied with them at all times. The company has cooperated fully with the Securities Commission, providing all relevant information and explanations in response to its questions, both in interviews and in writing. Regrettably, the Commission's interpretation of the continuous disclosure required by the listing rules and the Securities Markets Act differs from the company's directors' considered judgement at the relevant time. Discussions took place with the company's banks to loosen the SDCR covenant, effective as at 31 December 2008. These occurred as soon as the company had a clear understanding of the impact of the global financial crisis on demand and of the rapid devaluation of the New Zealand Dollar. The banks indicated they would consider loosening the covenant and, following completion of their internal processes, that is what they did. Given the banks' positive attitude, and after consideration by all board members, the board made the judgement in January 2009 that there was nothing material to disclose beyond the disappointing half year financial information. Business conditions during the 2009 financial year were unprecedented across the world, and in January 2009 the company was in uncharted waters. The board exercised reasonable, commercial judgement on disclosing the successful SDCR negotiations with the banks in the interests of the company and its shareholders. The board's view was, and remains, that while the company's negotiations with the banks remained incomplete, the company was complying with NZX listing rules in not making a disclosure. Furthermore, the board believes that disclosure while the negotiations were confidential and incomplete could have prejudiced the company, its shareholders and the banks.

No further statement will be made at this stage.

E James Williams General Counsel & Company Secretary Nuplex Industries Limited End CA:00193706 For:NPX Type:GENERAL Time:2010-04-14:08:30:26

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