NZX Q1 result builds on strong 2006 performance

27 April 2007

I. Q1 PERFORMANCE SUMMARY

• EBITDA: $ 3.2 million, versus $1.70 million in 2006 (IFRS adjusted), an increase of 90 %.
• Operating revenue: $ 7.2 million, versus $4.83 million in 2006 (IFRS adjusted), an increase of 50 %.
• Operating expenses: $4.0 million, versus $3.13 million in 2006 (IFRS adjusted), an increase of 28%.
• NPAT: $ 1.74 million, versus $1.18 million in 2006 (IFRS adjusted), an increase of 48 %.

With an EBITDA increase of 90 % on the same period 2006 (adjusted for IFRS), NZX has started the year with a strong first quarter result. This result confirms that the outstanding Q4 performance is sustainable, and further evidences that the significant improvement in revenues shown in the last quarter of 2006 represents a sustainable step-change in performance for NZX.

“This result is driven by continued strong revenue performance and controlled costs across all business lines,” said NZX CEO Mark Weldon.

II. Q1 BUSINESS HIGHLIGHTS

NZX Markets business

• A 92% year-on-year improvement in EBITDA, at $3.1 million (IFRS adjusted).
• Revenues, at $6.6 million, represent a 50% increase on the same period last year (IFRS adjusted).
• Operating Expenditures, at $3.5 million, represent a 25% increase on the same period last year (IFRS adjusted).
• Each of the core business units - listings, trading and information - were up on last year.

Smartshares

• EBITDA of $ 294 , 000 an increase of 345 % on the same period last year.

LINK Market Services

• EBITDA of $222,000, compared with a $65,000 loss in the same period last year.
• LINK continued to generate strong cash flows, repaying $200,000 of preference shares to its shareholders . T his reduced NZX's investment in LINK by $100,000. Further repayments are forecast during this financial year.

III. CAPITAL MANAGEMENT

• NZX's declared dividend of $0.16 per share, fully imputed, for the year ending 31 December 2007 will be paid on 31 May.
• NZX's Distribution Plan (under which shareholders may receive non-taxable bonus shares instead of a dividend) begins on the same date. The record date is 3 May 2007.

IV. FUTURE OUTLOOK

The external environment continues to support the strengthening of New Zealand 's capital markets. NZX expects that the KiwiSaver scheme, and taxation changes to be introduced this year, will act as the catalyst for medium-term growth.

NZX will continue to make investments that enhance the NZX markets. In Q3 a new trading system will be released to the New Zealand m arket. This will enable anonymous trading, which we expect to assist in improving liquidity.

On March 31 NZX acquired IRG Data, a financial information provider. NZX will continue to seek out profit-enhancing acquisition opportunities and make bolt-on acquisitions.

There has been solid progress on the AXE ECN Australian Market Licence (AML) application. AXE expects significant traction at regulatory level in Q2 for business launch at or around end June/early July 2007.

NZX, following the AXE ECN, will continue to build its strategy for international relevance and connectivity.

The Statement of Financial Performance and NZX's Operating Metrics for this period are available to download from the NZX website:

www.nzx.com/aboutus/investor/financial.

For more information, please contact:

Lucy McFadden
Communications
New Zealand Exchange Limited
04-496-2890
027-512-7832