TOWER LIMITED — Capital/Financing Update 2012

Sep 30, 2012

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1 October 2012

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 REINSURANCE UPDATE

TOWER has today confirmed the successful placement of its reinsurance programme for the 2012/13 financial year.

The programme again involves reinsurance cover for two catastrophe events. The excess for an event arising in the 2012/13 year will be NZ$11.7million compared with NZ$6.7 million in the previous year.

TOWER has also continued to enhance its reinsurance programme, with the limit for 2012/13 increased to $525 million per event. Due to changes in the programme, and an increase in premium levels charged by reinsurers, TOWER’s total reinsurance premiums for the 2012/13 year will be higher than in 2011/12. The company has increased the premium rates for its house, contents and motor policies, consistent with the market, to adjust for the increased reinsurance costs.

Rob Flannagan Group Managing Director TOWER Limited Tel: +64 9 369 2279 ARBN 088 481 234 Incorporated in New Zealand

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