Market Update

The directors of PGG Wrightson announce that the group will introduce a Dividend Reinvestment Plan (DRP), effective from the final dividend for the 2007 financial year, to be paid in October 2007.

The DRP will allow shareholders to receive their dividends in PGG Wrightson shares rather than cash. Full information on the Plan will be sent to shareholders in due course.

Consistent with the introduction of the DRP, the group’s dividend policy has been amended to provide for total dividend equivalent to between 80 and 100 percent of net
profit after tax and before amortisation (NPATA), effective from the 2008 financial year. The previous policy was for total dividend equivalent to between 65 and 85 percent of NPATA.

The directors have also confirmed appointments to two senior leadership roles within the group.

Michael Thomas has been appointed Group General Manager Financial Services, responsible for the growth and development of the Finance, Real Estate, Insurance and Funds Management businesses.

Mr Thomas brings considerable experience to this role, having worked over the past 10 years in a number of senior positions in Australia's largest agri-business, Landmark and AWB (Australian Wheat Board). He held senior roles in investor and grower relations in AWB, and executive general manager roles in sales, operations and financial services in Landmark. He has a Master of Economics from the University of New England, a Bachelor of Agricultural Science from the University of  Adelaide, and graduate diplomas in Agricultural Economics and Finance & Investment.

John McCombe has been appointed General Manager Rural Supplies, reporting to Hugh Martyn, Group General Manager Rural Services. Mr McCombe was formerly Chief Executive Officer of Christchurch based Dynamic Controls, one of the largest subcontract manufacturers of electronic equipment in Australasia.

The directors advise that trading conditions in the current half-year have been more difficult than anticipated, with relatively low sheep prices, pressure on margins in the
Rural Supplies business and the impact of the strong New Zealand dollar across most divisions of the group.

The chairman, Bill Baylis, said it was likely that earnings would be near the bottom end of the range indicated when the half-year earnings were announced on 26 February ($39 million to $45 million of net profit after tax and before amortisation).

Mr Baylis said trading conditions in the 30 June 2008 year should receive a significant boost from the rise in protein prices internationally and the recently-announced increase in the milk payout by Fonterra Co-operative Group. PGG Wrightson is already fielding strong enquiry for dairy cows and heifers, and for inputs to increase dairy farm productivity.

Media enquiries:

Barry Akers
09 309 5656
021 571 234

Bill Baylis
Chairman
PGG Wrightson Limited
03 477 5790
021 477 579