CGL Announcement regarding dividend and share consolidation

Chow Group Limited. NZX and Media Announcement: 5 October 2017 The Directors of Chow Group Limited (CGL) advise as follows: At the recent Annual Meeting the Chairman of CGL Mr. John Chow, advised that the Board were considering 2 matters: o A possible dividend and o A possible share consolidation The Directors advise as follows: Dividend CGL has been holding over $800,000 cash and the Directors had been considering alternatives including a possible dividend. At the Annual Meeting a number of shareholders suggested that the funds could be retained in the company and used for further growth. After consideration of the shareholder feedback and a calculation of the amount individual shareholders would receive the Directors have decided NOT to pay any dividend for the 2017 year. Mr. John Chow said, "we listened to the shareholders comments and we agree that we should retain the funds and reconsider the matter after the 2018 results are known". Consolidation The Directors have resolved to consolidate the shares on a 50 for 1 basis. Based on the most current market trading the price following the consolidation is anticipated to be approximately 65cps. Mr. John Chow said "We have noticed that some shareholders have been confused with the decimal places i.e. $.013 or 1.3cps. We have also been advised it is more difficult to relate to other financial data e.g. Earnings per share (E.P.S.) and N.T.A. etc. We expect this consolidation to remove these difficulties". It is important to note that while the consolidation will reduce the number of shares held by the shareholder by a factor of 50, the consolidation will not impact each shareholder's relative percentage shareholding in CGL. Based on current shares on issue, upon completion of the consolidation they will reduce: From: 822,903,748 To: 16,458,075. Each shareholder will continue to hold the same percentage of the company they held prior to the consolidation. Mr. Chow said "the company is trading in line with budgets. This announcement shows we respect the feedback we receive from our shareholders". The timetable for the consolidation will be advised within the next 10 working days. On behalf of the Board of Directors John Chow Chairman +64 9 974 9195 john.chow@cgml.co.nz End CA:00308350 For:CGL Type:MKTUPDTE Time:2017-10-06 11:38:38