FLETCHER BUILDING LIMITED — M&A Activity 2010

Dec 19, 2010

Crane Group Limited ABN 91 008 410 302

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20 December 2010

Level 14, Fujitsu House 15 Blue Street North Sydney NSW 2060

Postal address Locked Bag 2125 North Sydney NSW 2059 Australia

CHAIRMAN’S LETTER

Telephone 61 2 8923 3000 Facsimile 61 2 8923 3060 Internet http://www.crane.com.au

Dear Shareholder ,

Crane Group board REJECTS inadequate Fletcher Building offer

As you may be aware, Fletcher Building Limited (Fletcher Building) announced on Wednesday 15 December 2010 its intention to make an offer for all your shares in Crane Group Limited (Crane Group).

The Board of Crane Group today announced it has rejected this takeover offer. The consideration of one Fletcher Building share and A$3.43 in cash for each Crane Group share is inadequate and undervalues your company.

The highly conditional offer fails to adequately recognise Crane Group’s standalone value or the strategic value of the company to Fletcher Building.

The offer does not take into account the substantial synergies expected to be available to Fletcher Building as a result of the acquisition. These have been publicly identified by Fletcher Building to include:

• streamlining the corporate functions of Crane Group to align the functions with those required by a division rather than an independent publicly listed company

• maximising sales of the combined Fletcher Building and Crane Group’s manufactured products through owned distribution channels

• leveraging the scale of the combined Fletcher Building and Crane Group in the procurement of products and services

• amalgamating logistics and distribution arrangements with other parts of the combined Fletcher Building and Crane Group.

Fletcher Building has acknowledged the offer is coming at a low point in the industry cycle. Moreover, Fletcher Building has highlighted the strategic importance of Crane Group to the expansion of Fletcher Building’s Australian business portfolio.

These factors are simply not reflected in the price offered. Crane Group’s directors recommend shareholders reject the opportunistic bid and TAKE NO ACTION at this time.

The Board will continue to keep you informed of any material developments and, to assist you with any queries, Crane Group has set up an information line. Australian shareholders are advised to call Toll Free on 1800 643 977 or for overseas shareholders call +612 82563363 if they have any questions.

Yours sincerely,

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Leo Tutt

Chairman