Dividend Reinvestment Plan Price Determined

The share price used to calculate entitlements under the Fletcher Building Limited Dividend Reinvestment Plan has been set at $12.6945.

This is the volume weighted average price of the price-setting trades of Fletcher Building shares sold on the New Zealand Exchange in the five business days immediately following the dividend record date of 21 September 2007 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, 11 October 2007.  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 12.6945.

For New Zealand resident shareholders, full tax credits are attached to the dividend and no resident withholding tax is applicable.

For non-residents, the dividend includes full imputation credits.  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 2007 annual report on the website.

Australian residents are paid in Australian dollars which have been converted using an exchange rate of NZ$1.00 = A$0.8550.

Martin Farrell
Company Secretary
Phone:  +64 9 525 9091