S/PRICE: NZXR: Share Price Enquiry

28 Jun 2010 4:28 pm

NZXR 28/06/2010 S/PRICE

REL: 1628 HRS NZX Regulation

S/PRICE: NZXR: Share Price Enquiry

Share Price Enquiry

We write with respect to the continuous disclosure Listing Rules.

Listing Rule 10.1.1 is set out in the Schedule to this letter. In summary, this rule requires issuers to immediately disclose any Material Information to NZX. The rule provides limited exceptions to this obligation. Material Information does not need to be disclosed where a reasonable person would not expect the information to be disclosed and where the information is confidential and its confidentiality is maintained and where one of five safe harbours applies.

We note that New Image Group Limited's (NEW) share price traded today on the NZSX Market at $0.32 per share. This is a decrease of 6 cents per share (15.79%), since commencement of trading on Wednesday 23 June 2010.

Given this price movement, please immediately advise NZX whether NEW continues to comply with Listing Rule 10.1.1.

Could you please provide NZX with an answer to the above question (email: announce@nzx.com) before 5.00 pm today, Monday 28 June 2010.

Please note that NEW's response to this letter will be published in full to the market.

Yours faithfully

Garth Stanish Business Leader NZX Regulation

RESPONSE OF NEW IMAGE GROUP LIMITED TO SHARE PRICE ENQUIRY

Dear Garth

Thank you for your letter of 28 June 2010.

New Image Group Limited is not aware of any material information that has not already been disclosed to NZX and accordingly advises that the Company continues to comply with NZX Listing Rule 10.1.1.

The shareholding interests associated with Founding Chairman, Graeme Clegg, purchased 5,001,831 New Image Group Limited shares during the period from 31 March to 31 May 2010. The Company entered its share trading black-out period on 1 June 2010, so no associated parties are able to trade until the release of the Company's preliminary result for FY10 in late August.

The Directors consider the shares undervalued at their low current levels and so are considering re-introducing the company's share buy-back programme. Any decision to do so will be announced to the NZX.

In accordance with the Company's policy, Q4 revenues and full year FY10 revenues, will be announced shortly after the 30 June 2010 financial year end.

Yours sincerely

Stephen Lyttelton Chief Executive

SCHEDULE

10.1.1 Continuous Disclosure of Material Information: Without limiting any other Rule, every Issuer shall:

(a) once it becomes aware of any Material Information concerning it, immediately release that Material Information to NZX, provided that this Rule shall not apply when:

(i) a reasonable person would not expect the information to be disclosed; and? (ii) the information is confidential and its confidentiality is maintained; and? (iii) one or more of the following applies:

(A) the release of information would be a breach of law; or (B) the information concerns an incomplete proposal or negotiation; or (C) the information comprises matters of supposition or is insufficiently definite to warrant disclosure; or (D) the information is generated for the internal management purposes of the Issuer; or (E) the information is a trade secret.

In this Rule 10.1.1, an Issuer is aware of information if a Director or an executive officer of the Issuer (and in the case of a Managed Fund, a Director or executive officer of the Manager) has come into possession of the information in the course of the performance of his or her duties as a Director or executive officer. End CA:00196626 For:NZXR Type:S/PRICE Time:2010-06-28:16:28:08

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