Second Absolute Capital PINs product launched

Media Release: 20 October 2006

Second Absolute Capital PINs product launched in New Zealand

- PINs 2006-1 follows success of last year’s PINs 2005

- Offer open from 30 October to 17 November

Absolute Capital Group Limited (Absolute Capital), a leading specialist structured credit manager, has launched a second capital protected income product offer to New Zealand investors.

The key features of the product include:

- Principal capital protection*

- Designed to generate a 9.25% per annum yield plus potential bonus interest*

- Regular coupon generating quarterly income to investors*

- Rear-ended performance fee structure

- Income is supported by a range of internationally diversified credit and other investments

- NZDX listing has been requested to create the flexibility of secondary trading#

The rear-ended performance fee structure for the Absolute Capital PINs products is well regarded by New Zealand retail investors (it is usually only offered to institutions). It means that Absolute Capital Limited, as investment manager, will only earn a performance fee when performance exceeds, amongst other things, the payment to investors of the relevant return.

As it did with PINs 2005, the issuer will list the product on the NZDX, with a view to enabling investors the flexibility to trade out through a secondary market should they wish to access their investment earlier than the seven-year life span of the product.

The offer is scheduled to open on 30 October and close on Friday 17 November.

Commenting on the launch, Deon Joubert, Absolute Capital’s Managing Director, said, “With the demand we received for our first PINs product and the level of retail and institutional investment funds coming onto the market, we believe the timing is right for the launch of our second PINs offering to the NZ market.”

About Absolute Capital

Established in 2001, Absolute Capital offers focussed boutique capability.

Absolute Capital is 50 per cent owned by ABN AMRO Australia Limited, a wholly owned subsidiary of ABN AMRO Bank N.V. The balance of Absolute Capital is owned by Absolute Capital Management Holdings Pty Limited, representing the interests of staff and management. No member of the Absolute Capital Group or the ABN AMRO Group guarantees PINs 2006-1.

Absolute Capital Limited, as part of the Absolute Capital Group, is a specialist boutique structured credit manager, offering a range of structured credit and fixed income products to the Australian and New Zealand markets.

Absolute Capital Limited uses non-traditional investment techniques to meet the increasing demand of yield-driven products to create absolute returns. Capital preservation can be achieved with risk being limited to an acceptable level sufficient for the generation of investment returns.

Absolute Capital has a successful track record with approximately $NZ345m under management.

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Notes:
* Payment of interest on PINs 2006-1 is subject to investment risk which is described in the combined Investment Statement and Prospectus dated 17 October 2006. There are limited circumstances in which capital protection supporting the par value at maturity ($1 per PIN) may not apply. These are described in the combined Investment Statement and Prospectus dated 17 October 2006.
# Application has been made to the NZX for permission to list PINs 2006-1, and all the requirements of NZX relating thereto that can be complied with at the date of this press release have been duly complied with. However, NZX accepts no responsibility for any statement in this press release.

Disclaimer: No part of this announcement is an offer of securities or interests or an invitation to invest in any fund or portfolio managed by Absolute Capital. Any application to invest in PINs 2006-1 must be made on the application form attached to the combined Investment Statement and Prospectus dated 17 October 2006.

ENDS

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