News Release
June 23, 2003

Comvita Announces Intention To Be Among First To List On The New AX

Complementary health products market leader and Unlisted Securities Market issuer Comvita New Zealand plans to be one of the first companies to list on the NZX's new AX (Alternative Exchange) when it opens in August.

Riding high after winning a prestigious Trade New Zealand export award last week, Comvita is confident listing on the new market will lift the company's profile for the benefit of investors with an interest in the growth of natural health products.

"Listing on the AX will make us more public and give us better access to capital," according to Bill Bracks, chairman of Comvita.

Speaking from the company's Bay of Plenty headquarters today, Bracks says Comvita's Board has agreed to the new listing as part of the company's continuing growth strategy.

"If we continue to grow at our historical rate, there will be no problem in accessing high levels of funding where that is necessary" he asserts.

"There will be more share trades and wider shareholdings which will be linked to higher profits. A broader shareholder base will become a strength of the company."

Comvita's CEO Graeme Boyd agrees and adds that the company needs further investment. "The USM has provided a vehicle for shareholders to value and trade their shares," says Boyd. "It succeeded in that. We've gone from two shareholders in 1998 to 132 in 2003."

Since listing on the USM, Comvita's shares have been trading around $1.15 and $1.20.

Bill Bracks points out that the AX is being developed by the NZX (formerly the NZSE) to facilitate a more cost-effective, flexible public capital raising facility for New Zealand companies. He says Comvita is right behind the NZX in its efforts to create a market that will act as a catalyst for growth in New Zealand's capital markets.

"As an unlisted company, we feel the AX offers major advantages for Comvita," he says. "Aside from the obvious advantages of lower costs and streamlined processes, an AX listing will give us more liquidity."

Bracks is keen to see Comvita take a lead in listing on the new market. "If we're not the first to list, we'll certainly be the first natural health products company to list."

END

Publication Date: 13 June 2003
Source: Trade New Zealand

COMVITA NZ IS CONSUMER PRODUCTS EXPORTER OF THE YEAR

New Zealand’s Consumer Products Exporter of the Year is Comvita New Zealand, a Bay of Plenty company that started out manufacturing natural health products derived from honeybees in a garage in 1974.

The Trade New Zealand Export Award was presented at a gala dinner in Christchurch on June 12. Comvita New Zealand was one of 10 category winners.

The judges said Comvita was a classic example of how important the natural products industry can be to the growth of the New Zealand economy, by focusing on small, niche markets.

Comvita CEO Graeme Boyd says sales last year were $18.7 million. While about half that figure was direct exports, he says in reality about 75% of Comvita’s products end up offshore – with the balance either exported by other enterprises or taken back home by international tourists.

He says exports have been growing at 50% per annum since the late 1990s, boosted by a major expansion and restructure and following Comvita’s entry into the Australian market.

The Te Puke-based operation manufactures and markets a wide portfolio of natural health products derived from honeybees – honey, propolis, pollen, royal jelly and venom. The products are formulated and packaged into various applications – for example lozenges, elixir, throat spray and tablets – designed to appeal to different audiences, including digestive health, immune functionality and good nutrition.

Mr Boyd says Comvita positions its products at the premium end of the market, with the Comvita brand a key competitive advantage.

“We have developed a strong and well recognised international brand. One of our major points of difference is New Zealand – it provides us with a clean, green image, and the country itself provides us with the highest quality natural products found anywhere in the world.”

Comvita exports to 10 countries, with major markets Australia, the United Kingdom, Hong Kong, Japan, Korea and the US.

Mr Boyd says a key achievement has been the rapid growth in exports to Australia since Comvita entered the market in 1999. With annual sales of about $2 million last year, Australia is now its largest export market.

He says sales throughout Asia are also growing strongly, with people reaching for products such as propolis in an effort to build up immunity against the SARS virus.

Last year Comvita established its first 100% subsidiary offshore in Japan, part of its strategy to become more involved in its offshore markets in order to maximise export opportunities and control its future.

“In essence we are evolving from being an exporter to an international marketer,” says Mr Boyd. “We are moving towards having our own people on the ground in our offshore markets, rather than working through a distributor who handles products from many different companies.”

With demand for Comvita products continuing to increase, Mr Boyd says further expansion is required. In order to finance its growth, the company went onto the Unlisted Securities Market last year, with 130 shareholders investing in the business.

Publication Date: 28 May 2003
Title: Export Award for Comvita
Source: Trade New Zealand

EXPORT AWARD FOR COMVITA
- HONEY BEE SPECIALISTS

Comvita New Zealand, a Bay of Plenty company that started out manufacturing natural health products derived from honeybees in a garage in 1974, has won a Trade New Zealand Export Award for its strong growth in international sales.

The Trade New Zealand Export Award presentation to Comvita by Winnie Laban, Parliamentary Private Secretary to the Minister for Trade Negotiations, took place on Wednesday 28 May at the company's premises in Te Puke.

CEO Graeme Boyd says sales last year were $18.7 million. While about half that figure was direct exports, he says in reality about 75% of Comvita products end up offshore - with the balance either exported by other enterprises or taken back home by international tourists.

He says exports have been growing strongly at 50% per annum since the late 1990s, boosted by a major expansion and restructure, and following Comvita's entry into the Australian market.

Comvita manufactures and markets a wide portfolio of natural health products derived from honeybees - honey, propolis, pollen, royal jelly and venom. The products are formulated and packaged into various applications - for example lozenges, elixir, throat spray and tablets - designed to appeal to different audiences, including digestive health, immune functionality and good nutrition.

Mr Boyd says Comvita positions its products at the premium end of the market, with the Comvita brand a key competitive advantage.

"We have developed a strong and well recognised international brand. One of our major points of difference is New Zealand - it provides us with a clean, green image, and the country itself provides us with the highest quality natural products found anywhere in the world."

Comvita exports to 10 countries, with major markets Australia, the United Kingdom, Hong Kong, Japan, Korea and the USA.

Mr Boyd says a key achievement has been the rapid growth in exports to Australia since Comvita entered the market in 1999. With annual sales of about $2 million last year, Australia is now its largest export market.

He says sales throughout Asia are also growing strongly, with people reaching for products such as propolis in an effort to build up immunity against the SARS virus.

Last year Comvita established its first 100% subsidiary offshore in Japan, part of its strategy to become more involved in its offshore markets in order to maximise export opportunities and control its future.

"In essence we are evolving from being an exporter to an international marketer," says Mr Boyd. "We are moving towards having our own people on the ground in our offshore markets, rather than working through a distributor who handles products from many different companies."

With demand for Comvita products continuing to increase, Mr Boyd says further expansion is required. In order to finance its growth, the company went onto the Unlisted Securities Market last year, with 130 shareholders investing in the business.

Trade New Zealand Account Manager Jodie Tipping congratulated Comvita on winning an Export Award.

"Comvita's quality standards are high and the reputation of its brand has allowed it to achieve premium pricing in the international market. The imagery on its labelling and advertising material reinforces the quality perception.

"Over the last five years the company has undergone major change. It has invested considerable amounts in its infrastructure, systems, technology and marketing in order to support its expansion and fulfill its growth potential."

Graeme Boyd says Comvita's staff has grown from about 50 people in the late 1990s to more than 80 - 73 in the New Zealand operation and the balance offshore.

He says future plans include continued extension of its involvement in offshore markets in order to control its marketing and distribution. It will also invest heavily into research and development to both enhance its existing products and develop new natural health products using complementary ingredients.

"Our target is to be at $40 million sales by the end of 2006 and we are tracking towards that. The opportunities are huge, there is good solid growth in the whole natural products area as people begin to look after themselves and become more conscious of what they eat. They can see the possibility of preventing or stalling the onsets of certain diseases by diet and what they take - it's a worldwide phenomena and very exciting for Comvita."

About the Trade New Zealand Export Awards:
The Trade New Zealand Export Awards, sponsored by DHL, recognise outstanding achievement and growth by New Zealand exporters in international markets. Winners become contenders for the Exporter of the Year in their sector category, and category winners (with the exception of the Emerging Exporter Category) then vie for the Supreme Exporter of the Year Award, announced at an annual dinner on 12 June 2003 in Christchurch. www.exportawards.co.nz