S/PRICE: RAK: Share Price Enquiry

18 Feb 2010 8:30 am

RAK 18/02/2010 S/PRICE

REL: 0830 HRS Rakon Limited

S/PRICE: RAK: 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 Rakon Limited ordinary shares ("RAK") traded today on the NZSX Market at $0.90 per share. This is a decrease of 23 cents per share (20%) since market close on Wednesday 3 February 2010.

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

Could you please immediately provide NZX with an answer to the above question (email: announce@nzx.com) before 9.30am tomorrow, Thursday 18 February 2010.

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

Yours faithfully,

Caroline Young Head of Market Supervision

RESPONSE OF RAKON LIMITED TO SHARE PRICE ENQUIRY

In response to your letter dated 17 February 2010 we confirm Rakon Limited (RAK) continues to comply with its continuous disclosure obligations and is comfortable with the guidance given to date.

Yours Faithfully

Brent Robinson Chief Executive Officer Rakon Limited

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:00191297 For:RAK Type:S/PRICE Time:2010-02-18:08:30:17

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