TOWER LIMITED — Capital/Financing Update 2011

Mar 10, 2011

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11 March 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 post Christchurch earthquake

With the 22 February 2011 Christchurch earthquake occurring in the first half of its financial year, TOWER has, consistent with its policy on reinsurance, purchased additional cover to maintain its reinsurance position.

The high cost of further reinsurance, together with other costs associated with the Christchurch earthquake, including the reinsurance excess of $3.5 million after taxation announced on 22 February 2011, will increase TOWER’s expenses in the current financial year. These costs are expected to amount to $15 million to $20 million after taxation and will not be recovered in the current year. TOWER therefore expects the additional costs to impact its net profit after tax for the year ending 30 September 2011.

It is also expected that, given the increase in reinsurance premiums, customer premiums will increase in the future.

While the Board will continue to keep TOWER’s capital structure under review, it is not expecting to finalise a decision on a return of capital to shareholders in the short term.

The company’s emphasis on growth and customer service across all of its divisions will continue.

For further information please contact:

Tony Gibbs Rob Flannagan Chairman Managing Director +64 21 991 327 +64 9 369 2057 +64 21 925 491

TOWER Limited

ARBN 088 481 234 Incorporated in New Zealand

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