TOWER LIMITED — Capital/Financing Update 2011

Oct 2, 2011

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3 October 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

TOWER UPDATE

TOWER has today confirmed the successful placement of its reinsurance programme for the 2011/12 financial year. The programme again involves reinsurance cover for two catastrophe events. The excess for an event arising in the 2011/12 year will be NZ$6.7 million compared with NZ$5 million in the previous year.

Following the Christchurch earthquakes, TOWER has redesigned and enhanced its reinsurance programme. Due to the changes in the programme, and a significant increase in premium levels charged by reinsurers, TOWER’s total reinsurance premiums for the 2011/12 year will be higher than in previous years. The company has increased the premium rates for its house, contents and motor policies, consistent with the market, to adjust for increased reinsurance costs.

TOWER remains in a strong position, as evidenced by its ability to deal with the Christchurch related claims that have arisen over the past twelve months. The company’s policies will continue to offer earthquake cover across New Zealand.

As stated on 29 August 2011, TOWER expects group profits for the year ending 30 Sept 2011 to be within the analysts’ current range of $22-28m. The company is well capitalised and meets the solvency requirements that the Reserve Bank has indicated will apply under the new prudential supervision regime.

TOWER continues to be focused on growth opportunities.

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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