FORECAST: THL: Impact of Government tax changes to deferred tax provision

27 Jul 2010 3:40 pm

THL 27/07/2010 FORECAST

REL: 1539 HRS Tourism Holdings Limited

FORECAST: THL: Impact of Government tax changes to deferred tax provision

27 July 2010

NZX ANNOUNCEMENT FOR IMMEDIATE RELEASE

TOURISM HOLDINGS LIMITED Impact of Government tax changes to deferred tax provision.

The Government's Budget announcement on the 20th May that the ability to depreciate buildings for tax purposes with a useful life of over 50 years has been removed will impact thl from the 1st July 2011.

thl has obtained external advice on the expected impact that the Budget announcements will have on the accounting value of deferred tax and on thl's reported earnings for the year ended 30 June 2010.

Based on this advice which applies the New Zealand Equivalent to International Accounting Standard 12, thl will increase its deferred tax provision and reduce reported Net Profit After Tax by $0.94m.

This deferred tax liability adjustment is a one off non cash accounting entry and has no impact on thl's underlying profitability, cash flows or dividend policy.

Tourism Holdings Limited will release its annual results for the year ended 30th June 2010 to the market on Thursday, 26th August 2010 at around 9am.

Ian Lewington Chief Financial Officer Tourism Holdings Limited DDI: +64 9 336 4212 Mobile: +64 21 952 254 End CA:00197677 For:THL Type:FORECAST Time:2010-07-27:15:40:09

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