Currency Conversion Rate Established

Currency Conversion Rate Established For Energy Transaction Cash Payments

AUCKLAND, 29 March 2001 – Fletcher Challenge Limited has been advised that the exchange rate obtained by Shell to convert the cash entitlements for Fletcher Challenge Energy shareholders was NZ$1.00 equals US$0.425035. The rate applied to the US$3.55 entitlement being paid by Shell to those holders of Fletcher Challenge Energy shares who elected to receive New Zealand dollars.

The process used to arrive at this rate is as set out in the Fletcher Challenge Energy Information Memorandum and resulted in New Zealand dollars being bought over the 5 days up to and including 23 March. The amount in New Zealand dollars to be bought was updated during the week as Fletcher Challenge Energy shares traded between those holders who had and those who had not elected to receive New Zealand dollars.

On Friday 23 March, as a direct result of shareholder activity, a significant movement occurred to the extent that some of the New Zealand dollars that had been bought needed to be resold. The resulting final exchange rate is the weighted average of all this activity.

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