Change in reporting method of Thinxtra investment

4 July 2018 RAKON LIMITED (NZX: RAK) Change in reporting method of Thinxtra investment Rakon Limited ("Rakon") today announces that the reporting of its investment in Thinxtra Limited ("Thinxtra") will change from an equity accounted associate to a fair value accounted investment in the half year ending 30 September 2018 ("Half Year"). The Directors will determine the fair value on the basis of receiving an independent valuation report. Based on the last sale price for the shares as a current indicator of fair value available to the Directors today, it is expected that a gain of $7.5 million will be reported as profit in the Statement of Comprehensive Income for the Half Year. This projection is subject to the Directors receiving a final independent valuation report and the performance of Thinxtra over the Half Year. Brent Robinson Chief Executive Officer & Managing Director -ends- Contact: Simon Bosley (Chief Financial Officer) +64 9 571 9206 Media Enquiries: Louise Howe (Media Liaison) +64 21 206 0985 www.rakon.com End CA:00320361 For:RAK Type:GENERAL Time:2018-07-04 08:55:16