22 November 2005

Financial Result for the Six Months Ended September 2005 (Unaudited)

The Mainfreight Group is pleased to report a net profit after taxation of $10.330 million for the first six months of the 2006 financial year. This represents a $9.184 million increase when compared to the same period last year. EBIT grew from $3.785 million to $17.590 million.

Consolidated revenues (sales) increased to $438.242 million from $431.128 million; an increase of 1.7%. Excluding divested business units of Owens, this increase is 8.1%.

This much improved Group performance continues the growth trends experienced earlier in the year. All divisions contributed positively to this increase.

Of particular interest is the origin of the net surplus when compared to previous years. 38% of this year’s net surplus has originated from our divisions located outside of New Zealand. The previous year saw the New Zealand business units contribute 96% of the net surplus. This increase in performance from our off-shore businesses is an important contribution to our International development and spreads the risk of economic downturn from any one economy. Mainfreight is developing into a global business and our dependency on the New Zealand economy is much reduced from previous years.

Divisional Performance
Divisional performances include relevant Owens businesses and are quoted in New Zealand dollars.

New Zealand Domestic
EBIT improved to $9.741 million, an increase of 31.8%, again largely as a result of the Owens Transport improvements and the ongoing strength of our core domestic activities. While the indicators for the slowing of the New Zealand economy are not being ignored, we have yet to see any impact to domestic freight tonnages.

Total domestic revenues increased to $132.882 million from $129.438 million, an increase of 2.7%. Revenues within “Mainfreight only” businesses in this segment had revenue increases of 5.2%.

New Zealand International
EBIT improved to $1.253 million, from $0.781 million, an increase of 60.4%. Revenues for the period were $69.286 million compared to $75.570 million, a decline of 8.3%. The loss of Perishable volume contributed $5.4 million to this reduction.

Australian Domestic
EBIT improved to a surplus of $0.957 million from a deficit last year of $1.229 million. Revenues continue to improve with an increase of 16.1% to $49.702 million from $42.823 million. Excluding the contribution from Owens Transport Pty Ltd, revenues increased by 22.4%.

Progress in our domestic operations continues to be very positive with third quarter seasonal tonnage assisting further growth and greater profitability. Logistics enquiry remains very strong and domestic sales growth continues at very satisfactory levels.

Australia International
EBIT continues its strong improvement increasing to $4.692 million from $2.086 million, an increase of 124.9%. Revenues are improved by 18.9% to $143.192 million. Again, the largest contributor to this revenue growth is the Owens Project and Pacific Island freight businesses of Pan Orient Pty Ltd.

Performance from Mainfreight Owens International and Lep International continues to improve and exceed industry benchmarks. Import activity remains a key driver of these business units and Australian economic conditions are providing further growth.

USA International
EBIT continues its improvement to $1.189 million from $0.545 million, an increase of 118.2%.

Revenues grew 16.3% to $43.180 million. Excluding foreign exchange movements, revenues grew 25.6%.

While economic conditions in the United States fluctuate, CaroTrans continues to gain market share and is meeting our short term expectations. Further opportunities are available to see greater growth in the medium term.

Owens Group
Improvements within the Owens Group of companies continue at an acceptable level. EBIT for these companies improved to $3.431 million from a deficit of $5.910 million for the year previous. It is expected that these contributions will continue to improve providing an excellent platform for growth for the Mainfreight Group in ensuing years.

Satisfactory returns were received from our associated businesses, contributing $1.069 million to our net surplus, compared to $1.093 M for the previous year. Our Asian interests have opened another branch increasing our presence to four branches in China.

Group Operating Cash Flow
Operating cash flows were $13.262 million surplus compared to a deficit last year of $6.939 million. A greater emphasis on debtor collection in this third quarter will see improved results in this area.

Net capital expenditure was $15.1 million. Property development in Rotorua, Tauranga and Auckland was $10.8 million. $6.2 million of this related to our new development at Otahuhu.

Equity investments totaled $14.4 million. This related to the purchase of the remaining minority shareholding in Owens Group Limited and further investments in Hirepool.

The Directors of Mainfreight have approved an increase in the interim dividend from 3 cents per share to 5 cents per share. This dividend will be fully imputed and be paid on the 16th of December 2005, with books closing on the 9th of December 2005.

This satisfactory half year result continues to reflect the strength of the Mainfreight Group in our global freight activities.

Our ongoing interest in furthering these activities throughout the world will continue to provide satisfactory returns for our shareholders.

This current level of performance is expected to continue through the remainder of this financial year.

For further information, please contact:

Don Braid

Group Managing Director

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