TOWER LIMITED — Capital/Financing Update 2009

Feb 12, 2009

13 February 2009

Market Information Company Announcements Office New Zealand Exchange Limited Australian Stock Exchange Limited Level 2, NZX Centre Exchange Centre 11 Cable Street Level 6, 20 Bridge Street Wellington 6140 Sydney NSW 2000 ARBN 0088 481 234 Incorporated in New Zealand

TOWER Fixed Rate Senior Unsecured Bonds issue well supported by market

TOWER Capital Limited's fixed rate senior unsecured bonds (Senior Bonds) offer will open on Monday 16 February 2009. TOWER, through its wholly owned subsidiary TOWER Capital Limited, is offering $80 million of Senior Bonds with an interest coupon of 8.5% per annum (paid quarterly in arrears until the maturity date of 15 April 2014). TOWER has an ability to accept up to $20 million of oversubscriptions.

The issue has been very well supported with $80 million of Senior Bonds now having been allocated on a firm and reserved basis prior to the Offer opening. Given this demand, TOWER intends to exercise its option to accept oversubscriptions of up to $20 million, which will be available via a public pool for investors or for further allocation to NZX Primary Market Participants.

TOWER Chairman Tony Gibbs commented that “TOWER is pleased with the strength of demand for what it considers to be a very attractive opportunity to invest with the TOWER Group, one of New Zealand's longest-standing insurance and financial services organisations”.

The offer is being made only to New Zealand resident investors.

Application has been made to NZX for permission to list the Senior Bonds on the NZDX and all the requirements of NZX relating thereto that can be complied with on or before the date of distribution of this announcement have been duly complied with. However, NZX accepts no responsibility for any statement in this announcement.

No applications for the Senior Bonds will be accepted or money received unless the subscriber has received an investment statement. The minimum holding in respect of the bonds is $5,000 and in multiples of $1,000 thereafter.

Investors should request an investment statement by contacting their financial advisor or broker, or by calling the Joint Lead Managers, Forsyth Barr Limited on 0800 367 227 or Goldman Sachs JBWere (NZ) Limited on 0800 555 555. The investment statement will also be available on TOWER's website: www.towerlimited.com.

For further information contact Rob Flannagan Group Managing Director +64 9 369 2057