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6 October 2008   |   Announcements

Dividend Reinvestment Plan Price Determined

The share price used to calculate entitlements under the Fletcher Building Limited Dividend Reinvestment Plan has been set at NZ$6.8835.

This is the volume weighted average price of the price-setting trades of Fletcher Building shares sold on the NZSX in the five business days immediately following the dividend record date of 26 September 2008 in terms of the Dividend Reinvestment Plan Offer Document.

Shareholders who have elected to participate in the Dividend Reinvestment Plan reinvest their dividends to receive additional shares, rather than cash.  The new shares will be allocated on the dividend date, 16 October 2008.  The number of Fletcher Building shares to which participants are entitled is the total of the net dividend remittance per share which would otherwise have been payable to participants, divided by 6.8835.

For New Zealand resident shareholders, the net dividend remittance per share includes tax credits to the maximum permitted amount.  Following the change in the New Zealand corporate tax rate from 33% to 30% on 1 July 2008, dividends can be imputed at either rate, depending on the applicable rate of the tax payments. This dividend has been partly imputed at 33% and partly at 30%.  To the extent the 30% tax rate credits are attached, an additional 3% resident withholding tax has to be deducted from New Zealand shareholders without exemption certificates when calculating the net dividend remittance per share.

For non-residents, the net dividend remittance per share includes a supplementary dividend equivalent to the New Zealand non-resident withholding tax on the dividend.

For Australian resident shareholders full franking credits are also available in respect of this dividend.  The dividend remittance is subject to the 15% New Zealand non-resident withholding tax but offset by the payment of the supplementary dividend of the same amount.  An illustration of the calculation of the net dividend remittance is available in the Company's 2008 annual report.

Australian residents are paid in Australian dollars which have been converted using an exchange rate of NZ$1.00 = A$0.83867.

Martin Farrell
Company Secretary
Phone:  +64 9 525 9091
Fax: +64 9 525 9030