Media Release

Otago Power Limited - Restraining Order

10 May 2002

On 10 May 2002 the Takeovers Panel received a request from Electricity Invercargill Limited and The Power Company Limited to consider making restraining orders under section 33 of the Takeovers Act 1993 in relation to actions by the directors of Otago Power Limited.

The Panel has considered the request. The Panel considered that Otago Power Limited may not have acted or may not be acting or may intend not to act in compliance with the Takeovers Code by taking or permitting action that could effectively result in a takeover offer being frustrated. This action would be contrary to rule 38 of the Takeovers Code.

The Panel will meet to determine whether to exercise its powers under section 32 of the Takeovers Act 1993 at 10.00 a.m. on Friday 17 May 2002. This is at the same time as the meeting referred to in the Panel's earlier notice of today's date.

In the meantime the Takeovers Panel has made an order under section 32(2) of the Takeovers Act 1993 restraining Otago Power Limited from taking any action that is or that may reasonably be expected to constitute a contravention of the Takeovers Code.

The order restrains Otago Power Limited from taking any steps in relation to the sale of the assets of Otago Power Limited that is inconsistent with the previously set timetable.

This order expires at 5.00 p.m. on 19 May 2002.

The Notice of Meeting and Interim Restraining Order will be available on the Panel's website www.takeovers.govt.nz shortly.