TOWER LIMITED — Capital/Financing Update 2008

Apr 6, 2008

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Market Information New Zealand Exchange Limited ASB Bank Tower Level 9, 2 Hunter Street Wellington NEW ZEALAND

Company Announcements Office Australian Stock Exchange Limited Exchange Centre Level 6, 20 Bridge Street Sydney NSW 2000 AUSTRALIA

TOWER Limited – Media Release 07 April 2008

Mortgage Fund Closed

The Trustees Executors owned 1[st] Mortgage Fund, branded TOWER Mortgage Plus, is to be wound up as of 4 April 2008. TOWER Investments' CEO Sam Stubbs said:

“This is a fund owned and issued by Trustees Executors, who is also the mortgage manager. It lends on a diversified portfolio of residential and commercial 1[st] mortgages. The fund has operated for over 18 years and has consistently provided investors a fair but modest rate of return. For the last year the interest paid was over 7%. However, this product is no longer a relevant and competitive investment in the current environment where banks are competing so aggressively for deposits. The current credit environment and increasing arrears and defaults require more conservative provisioning for bad and doubtful debts, which impacts the interest rate payable. This has led to increasing redemption requests and it is prudent and appropriate to act in the best interests of all investors by winding up the fund. We recommended this to the Trustee and they agreed.”

As the Fund is a Group Investment Fund (GIF), it is difficult to convert into a PIE compliant product. Going forward, this would mean an unfavourable tax treatment for most investors. As the mortgages are paid and/or sold to other parties in an orderly wind up process, the proceeds will be returned to investors. The first payment is anticipated within 30 days and quarterly thereafter.

The fund size is currently $242million, with 450 residential and commercial 1[st] Mortgages totalling $220million by value. The fund currently has 9.1% of Mortgages by value in arrears for more than 30 days. These are being actively managed. The fund has relatively high cash holdings of over $22million. Investors will be written to quarterly to keep them fully briefed.

ENDS

For further information please contact:

Sam Stubbs CEO TOWER Investments Tel: 09 369 2284 Mobile: 021 491 547

Head Office TOWER Centre 22 Fanshawe Street PO Box 90347 Auckland 1142 New Zealand Phone +64 9 369 2000 ARBN 088 481 234 Incorporated in New Zealand