KBC TAKES KEY SHAREHOLDING IN LIONTAMER

29 May 2007

We are delighted to announce that the asset management arm of Europe's 11th largest bank, KBC Group, have joined Liontamer as shareholders.

The transaction for a 51% stake in Liontamer was completed on 22 May 2007.
This is an enormous moment of progression for Liontamer, as we partner with one of Europe's largest banks and work alongside a highly successful asset management team.

We believe that it is also a significant moment for New Zealand advisers, brokers and investors, who will benefit from one of Europe's leaders in capital protected products bringing their expertise and pricing power to the Liontamer business. Belgium-based KBC have a market cap of 36 billion Euros (NZ$66 billion) and are listed on Euronext Brussels and the Luxembourg Stock Exchange. They operate across Europe and Asia with 11 million customers and over 50,000 employees.

It's a great achievement for a business like Liontamer to attract such a prestigious international player. KBC's stake in our business is a powerful endorsement of their confidence in the New Zealand market and in the achievements of Liontamer since our launch in 2003. Now the process is complete, the benefits will soon be felt by the New Zealand financial services market. Europe's 11th largest bank and renowned specialists in capital protected funds, are adding their expertise, research, pricing power and innovation to the New Zealand market. That type of depth can only be welcomed.

KBC - structured products experts

While the KBC name is not immediately recognisable in the New Zealand market, they are very familiar to us here at Liontamer. We've monitored their funds for years, and have maintained a long-standing relationship with their asset management team. They've acted as mentors on a personal level and given advice on the basis of simply wanting to see a boutique manager succeed. Over the years, we've kept in regular touch via visits to Europe and conference calls to share ideas. So it was no real surprise when KBC first approached us to form a strategic relationship.

Making the decision to take on a new shareholder

The last few months have been an extremely exciting time for us. The decision making process has been both challenging and stimulating for the business. From the very start it was critical to us that any new party shared our passion for the Liontamer brand and our innovative culture. We were also determined to retain full management control and only join with someone who had skills to bring to the table. KBC are fully supportive of our business and our goals - as one of the leading distributors of capital protected products in Europe, they know our industry inside out.

Market leader in socially responsible investments

Another reason behind our decision to partner with KBC is that we are big believers in investment areas related to world sustainability and macro economic change caused by the way we treat the world's resources. KBC are a market leader in socially responsible investment funds. They are world renowned for their thematic funds such as Water, Alternative Energy and Climate Change. A partnership with KBC provides us with access to these funds and a platform for further growth and expansion into the Australian market. For financial advisers and brokers, having access to a wider range of international funds will enhance the market.

Market size

KBC are spread over Central and Eastern Europe as well as Asia, but despite their size (larger than our own local stock exchange), they know the magic of small markets. Their own stomping ground of Belgium has a population of 10.3 million, but their structured products industry is the envy of the world. In 2006 total sales of structured products from all providers in the Belgian market was 20.6 billion Euros (NZ $39 billion).

. KBC Group market cap = NZ$66 billion
. NZ Stock Exchange market cap = NZ$53 billion

The outlook for Liontamer

From the outset, we were both personally determined to develop Liontamer into a boutique funds management business that was stable, secure and market leading for the benefit of investors, intermediaries and our employees. KBC have a proven track record as long-term investors in businesses located in different geographic regions. We know that KBC will be instrumental in helping us launch Liontamer into a new period of growth.

The New Zealand financial services market is a vibrant and exciting place to operate and we believe the future looks very bright indeed.

Laetitia Peterson & Janine Starks