TOWER LIMITED — Board/Management Information 2011

Aug 28, 2011

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29 August 2011

Market Information Company Announcements Office NZX Limited Australian Stock Exchange Limited Level 2, NZX Centre Exchange Centre 11 Cable Street Level 6, 20 Bridge Street Wellington Sydney NSW 2000 New Zealand AUSTRALIA

RESIGNATION OF DIRECTOR

TOWER announces that Tony Gibbs has resigned as Chairman and Director of the company. Group Managing Director Rob Flannagan said that Mr Gibbs had been Chairman of TOWER Limited since 2006 following the separation of the former TOWER Australian and New Zealand businesses. Under his leadership the company’s profitability had grown from $25m in 2006 to $58m in 2010, and the company had commenced paying dividends to shareholders in 2009.

The strength of the company over this period has been evident in dealing with claims emanating from the Christchurch earthquakes over the past twelve months. Despite payments made under its reinsurance policies, and the cost of reinstatement, TOWER expects group profits for the year ending 30 Sept 2011 to be within the analysts’ current range of $22-28m, and for its general insurance business to remain profitable.

Mr Flannagan said that while negotiations for the reinstatement of catastrophe re-insurance over the next year had not yet been concluded, he was confident that cover would be contracted though premiums would be higher.

The Board has appointed Bill Falconer as Chairman, and has brought forward its succession plans with the intention of appointing a successor for Mr Gibbs. Mr Falconer said that TOWER’s current strength was in no small part due to Mr Gibbs’ passion for the company and his commitment to its success.

Rob Flannagan

Group Managing Director TOWER Limited DDI: +64 9 369 2057 Email: rob.flannagan@tower.co.nz

ARBN 088 481 234 Incorporated in New Zealand

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