Statement K M Hoggard - Fletcher Challenge Shares

STATEMENT BY K M HOGGARD

The report issued by the Securities Commission summarises their findings of my purchase of shares in Fletcher Challenge Ltd in December 1999.

It is important for me to declare that my sole motivation in acquiring these shares was to demonstrate to the Company, Management, Board and the Market, my total commitment to the restructuring process that I firmly believed would take 12 months to complete. The investment was to be long term and I gave no thought to any personal potential short term financial gain.

At that time I was operating under extreme business pressure, especially with the media and market attention on Fletcher Challenge Ltd, and I profoundly regret that I did not give appropriate consideration to the insider trading implications of the purchase. My desire to have the company announcement made to shareholders in December was to further clarify what had already been announced in July 1999, particularly relative to Buildings and Forests. I sincerely hoped this announcement would relieve the market and media pressure and provide time to complete a transaction in one of the letter stocks. I was completely transparent with the share purchase and advised the Company immediately.

Clearly I have suffered severe personal damage to my professional reputation, but I have endeavoured to ensure that no other party has suffered harm. The actions to reimburse potentially effected shareholders, resign from the Board and co-operate fully and openly with the Commission’s investigation I hope verify that I have taken very seriously, the implications of the mistake I made.

Released on behalf of My Kerry Hoggard by
Network Communications (Dennis Lynch) tel: 09 379 3154.

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