GENERAL: NZX: Notice of Share Buy-Back & Dividend Policy Amendment

5 Jul 2010 11:44 am

NZX 05/07/2010 GENERAL

REL: 1144 HRS NZX Limited

GENERAL: NZX: Notice of Share Buy-Back & Dividend Policy Amendment

Notice of Intention to Buy-Back Securities & Amendment to Dividend Policy

5 July 2010 - NZX today announces a share buy-back and an adjustment to its dividend policy. Both are expected to be positive news for shareholders.

Share Buy-Back

NZX today announces the intention to buy-back up to 3,571,428 of its fully paid ordinary shares.

The NZX Board is of the view that the current share price is significantly below fair value and doesn't reflect a reasonable valuation of the company today, even without taking into account the growth prospects about which the Board and management are confident. A buy-back of shares at this time is an opportunity to provide a return to shareholders in excess of NZX's cost of capital. The Board has today authorised management to undertake buy-backs in accordance with the NZSX Listing Rules, the Companies Act 1993 and NZX's Constitution.

Under Listing Rule 7.6.2, NZX will acquire up to 3,571,428 ordinary shares during the period from 9 July 2010 to 31 January 2011.

Adjustment to Dividend Programme

NZX also announces an adjustment to the timing of the dividend programme established in December 2009. NZX currently pays one annual dividend.

The NZX Board has approved a move to split the dividend into two approximately equivalent amounts paid as an interim and a final dividend. The interim dividend will be paid in October of each year. The final dividend will follow the NZX full year financial accounts. Such payment is expected in April of each year.

NZX Board and management believe New Zealand investors look for income as well as capital appreciation, so smoothing the dividend payment over the year should better meet that need.

The NZX Board and management view this adjustment to the timing of dividend payments as an opportunity to reiterate to the market their confidence in future earnings growth, and to remind investors of their intention to increase the annual dividend by a minimum of 1 cent per share annually, for the next four years.

An announcement in relation to the exact amount and timing of the interim dividend will be made in due course.

For three of the last four years, NZX has operated a Profit Distribution Plan (PDP). NZX today announces the suspension of the PDP. Shareholders should expect their dividends in cash until further notice.

ENDS

For more information, please contact:

Merja Myllylahti Stakeholder Relations Manager Communications NZX Limited

E-mail: merja.myllylahti@nzx.com Phone: 04-4962890 extension 890 Mobile: 027-5127832 End CA:00196937 For:NZX Type:GENERAL Time:2010-07-05:11:44:41

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