News release
26 September 2005

Natural healthcare product company Comvita Limited has purchased its United Kingdom based distribution partner, New Zealand Natural Food Co Ltd.

The acquisition of New Zealand Natural Food Company is a significant step forward for Comvita as the UK export market currently accounts for a significant portion of total sales. The UK was Comvita’s first export market and for most of its history it has been the most important. Comvita’s total export sales account for over 60% of turnover.

Comvita consumer products provide the majority of New Zealand Natural Food’s current business through health, pharmacy and grocery outlets.

Located at Park Royal, the business is conveniently situated in a fast developing commercial area between Heathrow and Central London.

Sales through its new subsidiary are expected to be around GBP 2, 000,000 in 2005, and it will be earnings accretive from the first year.

Chairman Bill Bracks says, “We have built up a lot of expertise in running off shore-subsidiaries. We’ve also proven that applying our management and marketing expertise, and combining that with direct involvement in the market to be closer to our end customer, we grow our business more quickly. This is a very exciting step for Comvita.”

Ron and Pamela Steele, the former owners of New Zealand Natural Food Co have been working closely with Comvita and marketing the brand for 20 years in the United Kingdom. They well deserve congratulations for the way they have grown and developed the business." says Bracks.

Brett Hewlett Comvita’s chief executive is excited about the growth opportunities for Comvita, “it will enable Comvita to build on the offshore success Comvita has enjoyed with wholly owned subsidiaries in Australia, Japan and Taiwan” says Hewlett. Comvita takes over at a time when the Comvita brand is well recognised and accepted by the UK market as both having excellent products and an exceptional ethical reputation.

The purchase will take effect from 1 December 2005 and is for an undisclosed sum. The purchase will be funded by borrowings plus the issue of £50,000 in share capital.

Comvita’s consumer division manager, Scott Coulter, says Comvita has been working on the acquisition for two years.

“It fits exceptionally well with our growth strategy and it provides a platform to develop further into Europe, a market with some 450 million people."

Comvita was announced Food & Beverage Exporter of the Year at the recent New Zealand Trade & Enterprise Export Awards.
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Mr Brett Hewlett
Chief Executive, Comvita Limited
Telephone: +64 (7) 533 1426 or 021 740 160

News release
26 September 2005

Neil Craig is the new Chairman of the natural health food company Comvita Limited.

Craig, Executive Chairman of ABN Amro Craigs Limited, takes over the role from Bill Bracks on October 1.

Bracks, who came to Comvita in 1991 as a consultant for three days and stayed 15 years, has been Chair since the first board was formally established in 1997. He will continue as a board member. Since 1991, the firm’s annual turnover has grown from $1.5 million to $30 million.

Craig became a Comvita director in April 2005, having been an alternate director since 2002. He has been a shareholder since 1997. ABN Amro Craigs managed Comvita’s float on the NZAX in November 2003.

Craig holds a number of private company directorships in the kiwifruit industry including Opotiki Packaging & Coolstorage Limited, Punchbowl Coolstores Limited and Kiwifruit International Limited. He has been a director on the New Zealand Stock Exchange, Mighty River Power and TrustBank Bay of Plenty Limited.

The ABN Amro Craig company has grown from an original firm started by Craig at Whakatane in 1984. The firm now has 13 offices nationwide, employing 200 people.

Bracks says Comvita’s board chose Craig because, apart from his interest in the firm from the outset, he has widespread investment and commercial skills.

Craig says Bracks has used very strong governance skills and a high level of marketing vision to position Comvita as a strong international marketer, and to put Comvita into the public arena.

“Now it has marketing channels and the structure which make it ready for a new phase of growth. I think this will be through both acquisitions and internal growth,” Craig says.

Comvita last month won its second Food Exporter of the Year award, and is pursuing a planned strategy to change from being an ‘exporter’ to an ‘international marketer’ of natural health products and health solutions.

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News release
26 August 2005

Comvita appoints new CEO with sights firmly on further international growth

Natural health food company Comvita Limited today announced the appointment of a new chief executive with extensive international business development experience.

Mr Brett Hewlett, of Tauranga, will take up the role from September 19.

Comvita chairman Bill Bracks says the company is on a strong international growth path, and Mr Hewlett has the skill set to help achieve further significant expansion abroad.

In its last financial half-year, exports made up 60% of Comvita’s sales, which grew 30% in New Zealand dollar terms during that period.

Mr Hewlett has spent 15 years of his 20 year-career overseas with the global food processing and food packaging solutions provider Tetra Pak. As one of its top 150 executives worldwide, he led the 1988 start-up of a company developing Tetra Pak’s eastern Mediteranean markets (Lebanon, Syria, Jordon, Iraq and Palestine), building a team of 35 staff and significant revenues by 2002.

Mr Hewlett earlier held technical director and area general manager roles with Tetra Pak. For four years he was a project manager with Alfa Laval UK Limited (later acquired by Tetra Pak), leading teams to build new dairy and food processing plants. Mr. Hewlett returned to New Zealand with his family in 2004 and started a business mentoring service.

Mr Bracks says Comvita has been taking control of its own marketing overseas and under current CEO Graeme Boyd, who has had the role since 1998, has made significant gains in key markets, including the UK, Australia, Taiwan and Japan.

Comvita’s principal export growth strategy is to change from being an ‘exporter’ to an ‘international marketer’ of natural health products and health solutions, Mr Bracks says.

“Future plans include an office in the UK which will also become the base for expanding into Europe, and to grow new business in the United States where significant opportunities exist in the Medical Honey products market. The new CEO has the skills to help make those happen.”

Comvita has more than 90 staff in New Zealand and a further 10 offshore in subsidiaries in Japan, Hong Kong, Australia and most recently Taiwan. It uses contract manufacturers throughout New Zealand to boost its in-house capability. This month it was named food and beverage Exporter of the Year.

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For further information please contact
Mr Bill Bracks
Chairman, Comvita Limited
Telephone:  +64 7 573 7000, 021 386 974

Brett Hewlett, CEO designate, Comvita Limited
Telephone: +67 (7) 574 0005, 021 740 160