Open Letter to Amp Property Portfolio

Capital Properties New Zealand Limited
Level 11, The Bayleys Building
Cnr Brandon Street & Lambton Quay
PO Box 1690, Wellington
New Zealand

28 October 2005

OPEN LETTER TO AMP PROPERTY PORTFOLIO

Capital Properties today released to NZX an open letter to AMP Property Portfolio Investments Limited ("AMP Property Portfolio"), in response to an open letter received from AMP Property Portfolio on 21 October 2005. A copy of the letter will also be made available later today on Capital Properties' website at www.cpnz.co.nz under Articles/Media Releases.

Chairman of Capital Properties' Independent Directors' Committee Tony Frankham said that the open letter had been released to ensure that all parties had access to the material in the letter.

AMP Property Portfolio is offering $1.42 for each Capital Property share. The Independent Adviser appointed under the Takeovers Code, Deloitte, assessed that the $1.42 a share offer was not fair to shareholders and was below the fair value range of $1.48 to $1.73 a share with a mid-point of $1.60. The Capital Properties Independent Directors' Committee has recommended that shareholders not accept the current offer.

ENDS

See... http://img.scoop.co.nz/media/pdfs/0510/APPIL_281005.pdf

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