Strategic collaboration with The New Zealand Merino Company

Cavalier Corporation Limited (NZX:CAV) has today announced a collaboration with The New Zealand Merino Company (NZM) as Cavalier looks to develop and implement a transformative and design led business model focused on connecting consumers with Cavalier's wool product. Iconic New Zealand brand Cavalier has more than 50 years of history and in-depth knowledge of the carpet sector and considers natural wool the optimal choice for carpet design, innovation and overall performance. In addition to this, consumers around the world are becoming increasingly environmentally aware and wool is well positioned to capitalise on this movement. To optimise this opportunity, Cavalier has appointed NZM to assist the company shift to a design led business that is fit for the next 50 years. The core objective being to enhance Cavalier's commercial performance and deliver long term sustainable returns for shareholders. NZM has a 20 year track record in transforming New Zealand's sheep industry from producing commodities to partnering with and supporting the growth of premium brands globally. It has extensive sales, marketing and innovation expertise, applied through its ZQ ethical wool brand and has worked closely with leading brand partners including Icebreaker, Smartwool, Loro Piana, Reda and Allbirds. CEO of Cavalier, Paul Alston, said: "We are at a pivotal moment in our company's history. The quality and craftsmanship of our wool carpets is undeniable and is recognised by customers around the world. Together with NZM, we will be looking to revitalise the demand for wool carpets as a natural, more sustainable, healthier alternative to synthetic fibres, further delivering to our 'world of difference' vision." CEO of NZM, John Brakenridge, commented: "The tipping point we've seen in apparel with consumers embracing new categories of natural products is a strong signal of broader behaviour change. We applaud Cavalier's leadership in making moves to connect consumers with natural products in a more meaningful way and look forward to building on the strong platform established by Cavalier to add further value to the New Zealand wool sector." 23 August 2019 ENDS For further information please contact: Paul Alston Chief Executive Officer palston@cavbrem.co.nz +64 21 918 033 +64 9 277 1135 John Brakenridge Chief Executive Officer The New Zealand Merino Company john.brakenridge@nzmerino.co.nz +64 21 454 607 Jackie Ellis Media and Investor Relations Jackie@ellisandco.co.nz +64 27 246 2505 End CA:00339677 For:CAV Type:MKTUPDTE Time:2019-08-23 10:03:32