EROAD LIMITED ANNOUNCES EQUITY RAISING

12 December 2017 EROAD Limited (NZX: ERD) (EROAD) is pleased to announce that it will be raising new capital to support the continued implementation of its strategy. The capital will be raised via a combination of a placement to raise at least $14 million and a Share Purchase Plan (SPP) to raise at least $4 million. EROAD forecasts continued strong growth in net new contracted units for the remainder of FY18. To service the continued growth, EROAD intends to use the capital raised to support three key areas of EROAD's business: business processes, non-bank debt replacement and incremental growth. To support core business growth, $4.5 million will be used for upgrading customer support systems to maintain high service levels as well as providing working capital for inventory growth. Additionally, $5 million has been budgeted for replacing non-bank lender funding to simplify EROAD's funding structure and operational activities. The remaining $8.5 million or more will be used to develop and expand disruptive product offerings as well as building a digital ecosystem to better collect and analyse transport data and potential inorganic growth. The placement will be conducted today through a bookbuild in which institutional and other select investors in New Zealand, Australia, Hong Kong and Singapore will be invited to participate by First NZ Capital Securities Limited. Following EROAD's decision to undertake the placement, NMC Trustees Limited as trustee of the NMC Investment Trust (NMC Trustees), EROAD's largest shareholder (with 26% of all EROAD shares on issue), decided to offer approximately $5 million of its shares for sale through the placement. Steven Newman, the Chief Executive of EROAD, has an indirect interest in the shares held by NMC Trustees. Steven remains fully committed to the EROAD business, and will remain a significant shareholder following the placement. Following the placement, Steven is expected to indirectly hold in excess of 21.5% of all EROAD shares, through NMC Trustees Limited. In addition to the placement, EROAD intends to make an offer of at least $4 million through an SPP. The SPP is expected to give each EROAD shareholder whose address recorded in EROAD's share register is in New Zealand an opportunity to subscribe for shares. The final terms of the SPP are expected to be announced in more detail in early calendar year 2018, but eligible shareholders will pay the lower of the placement price or a discount to the share price at the time. The placement and SPP will be fully underwritten by First NZ Capital Securities Limited. A copy of the notice of offer of same class financial products and investor presentation accompany this announcement. - Ends - For further information please contact: Michael Bushby Chairman Michael.Bushby@eroad.com +64 9 927 4700 About EROAD EROAD is a fully integrated technology, tolling and services provider. EROAD's goal is to offer flexible and powerful solutions based on its innovative technology to assist in the creation of a transport sector that is responsive to the evolving needs of business, government and the wider community. The EROAD platform consists of a secure electronic distance recorder (Ehubo), integrated with mobile applications, and an online bank-grade payment gateway and services portal. It undertakes design and manufacture of its in-vehicle hardware, as well as software development, from its headquarters in Auckland, New Zealand. EROAD's advanced technology provides road charging, compliance and commercial services with the same platform to lower overall client and delivery costs for transport operators across New Zealand, Australia and North America. End CA:00311778 For:ERD Type:OFFER Time:2017-12-12 09:22:06