Comvita Strategy Post China Marketplace Acquisition

Moving from 51% to 100% ownership of our China distribution business was a major milestone in our overall sales strategy. The China business has effectively been operating as a 100% Comvita subsidiary from 1 April 2019, is trading profitably and is a key component of a wider strategic review being undertaken by the Board over the last twelve months. In order to expedite the completion of this review, the Board has established a special purpose sub-committee to be led by Brett Hewlett (Director and former CEO) acting in a temporary capacity as Executive Director. The sub-committee is charged with undertaking a review of the under-performing assets of the business, as well as structural, balance sheet, leadership and organisation considerations. Specifically, the sub-committee will examine the possibility of a more formal separation between the 'brand' and 'supply' components of the business. External advisers will be retained as required to ensure minimal impact on the day-to-day operations of Comvita. We are targeting our Annual Shareholder Meeting on 17 October 2019 as the date to announce details of the business strategic review, and if required, to seek any necessary approvals from shareholders to proceed with any recommended structural changes. In the interim period, it is 'business as usual' in terms of retaining a focus on growth in sales, a continuing search for improvements in operational efficiencies and profit optimisation. Ends. End CA:00335623 For:CVT Type:MKTUPDTE Time:2019-06-06 09:52:32