International Paper agrees to sell shares

Date: 17 August 2005

International Paper agrees to sell shares to Rank Group Carter Holt Harvey Limited

Carter Holt Harvey has been advised that IP has entered into a lock-in agreement to sell its 50.5% stake in CHH to Rank Group Investments Limited for $2.50 per share (with existing shareholders retaining the benefit of the recently announced Interim Dividend). The same offer will be made to all shareholders in compliance with the New Zealand Takeovers Code.

Carter Holt Harvey CEO, Peter Springford said “We have just received advice of this agreement and it is premature for us to comment in any detail on it. One very positive aspect for New Zealanders is that the bidder company is New Zealand owned.” Under the Takeovers Code, Rank Group will issue a takeover offer and CHH will provide a Target

Company Statement containing an Independent Report and the CHH Independent Directors’ recommendation. This process will unfold over the next month in accordance with the Code.

Peter Springford confirmed that CHH and its Board would continue to work through the process, acting in the best interests of all shareholders.

ENDS

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