FLETCHER BUILDING LIMITED — Capital/Financing Update 2008

Oct 6, 2008

==> picture [118 x 79] intentionally omitted <==

ABN 35 007 573 417

HILLS ENTER INTO AGREEMENT TO SELL SHAREHOLDING IN FIELDERS AUSTRALIA

The Chairman of diversified Australian company Hills Industries Limited, Ms Jennifer Hill-Ling, today announced a conditional agreement had been signed to sell its 60% shareholding in Fielders Australia Pty Ltd (“Fielders”) to Fletcher Building Limited (“Fletcher”).

Ms Hill-Ling stated that the Agreement for the sale of 60% of Fielders held by Hills was subject to a number of conditions precedent including due diligence, ACCC and FIRB approval.

Commenting on the financial terms of the offer, Ms Hill-Ling stated that: “We expect this transaction to return approximately $105M in cash to the Hills Group, comprising repayment of inter company loans, consideration for shares and a fully franked dividend.”

Completion is expected to occur late in the 2[nd] quarter of this financial year or early in the 3[rd] quarter.

Fletcher will be acquiring 100% of the shares in Fielders and has entered into agreements with the minority shareholder of Fielders.

MEDIA CONTACTS:

Graham Twartz Managing Director Hills Industries Limited 0412 818 271

7th October 2008