GRAINCORP LIMITED — M&A Activity 2003

Sep 29, 2003

Immediate Release

30 September 2003

GRAINCORP ABSORBS MARKETLINK AND NSWGB VESTING RIGHTS AS MERGER TAKES EFFECT

The merger between leading Australian agri-food business GrainCorp Limited and Grainco Australia formally takes effect on 1 October 2003. This follows the overwhelming approval given to the merger by Graineo shareholders at a meeting held 15 August 2003.

An important part of this is that the MarketLink name will cease to exist and all of its operations will be integrated into GrainCorp Marketing. From 1 October 2003 all cash and pool prices will operate under the GrainCorp banner.

GrainCorp has acquired the NSWGB vesting rights on the merger integration date of 1 October 2003.

The transfer of MarketLink trading and support staff to GrainCorp is now complete and MarketLink's accumulation team has been transferred to Australian Grain Accumulation (AGA) which has extensive coverage across all Australian grain growing regions. AGA will provide daily bids from GrainCorp Marketing, Cargill and Allied Mills to growers in these areas.

"The integration is an exciting opportunity for GrainCorp Marketing. We are looking forward to the future as a bigger, stronger organisation that is well equipped to provide a range of quality products to our customers," said Tom Keene, Managing Director.

MarketLink has notified all growers, consumers and traders with contracts that it will transfer all of its rights, title and interest to GrainCorp Operations Limited effective on 1 October 2003. All the terms and conditions of existing contracts will remain unchanged and GrainCorp will be responsible for MarketLink's obligations to contract holders.

GrainCorp has also written to all growers, trade representatives and consumers to provide more specific information and including marketing contact details, bank account details and specific preharvest delivery information.

Following from the merger, GrainCorp has announced its plans for the NSW Grains Board (NSWGB) regulated grains over the next two years following formal notification from the Minister for Agriculture, The Hon. Ian Macdonald of NSW Government consent for transfer of the vesting rights to GrainCorp. Current regulation is subject to a legislated sunset on 30 September 2005.

"Following discussion with NSWGB and other stakeholders. GrainCorp will immediately establish a permit system for export canola and sorghum for this coming season. These markets under a permit system will operate in a transparent and accountable manner," said Tom Keene, Managing Director of GrainCorp.

There will be no changes to the current arrangements for domestic malt barley and export feed and malt barley for the coming harvest; the arrangements for barley will be reviewed for the 2004/05 harvest in consultation with NSWGB and other stakeholders.

GrainCorp will run Pools for all regulated grains from this harvest.

"We will create the opportunity for the development of competition in the supply chain for feed barley by allowing its delivery to the GrainCorp feed barley Pool at port. Feed barley may already be traded domestically," added Mr Keene.

The permits would allow third parties to participate in the export of canola and sorghum under a licence system operated by GrainCorp as agent for the NSWGB. The permit fee will be set at \$5 per tonne.

"Our intention is to facilitate a transition to a deregulated environment from 30 September 2005. We are pleased to be able to provide the required stability over the next 12 months, and will review the introduction of a permit system for other regulated grains for the 2004/05 season", added Mr Keene.

The 2000 NSW Grains Board Deed continues to apply to GrainCorp as part of the transfer arrangement. It confers export monopoly rights on GrainCorp for NSW canola, barley and sorghum, in addition to domestic monopoly rights for NSW malt barley.

As part of the arrangement, GrainCorp will also continue to collect authorised buver's fees, provide benchmarking reports to the grains consultative group which includes the NSW Farmer's Association, and offer pools and cash prices to growers.

For more information on your marketing needs please contact your local Australian Grain Accumulation (AGA) merchant.

Media contact: Mario Falchoni, Corporate Relations Manager - 02/9325 9132 or 0418 401 415