Blue Star Print Group $105 million Capital Bonds offer announcement

Blue Star Print Group (BSPG) today announced that it intends to make an offer of $75 million of Capital Bonds, with the right to accept oversubscriptions of up to a further $30 million.

The Capital Bonds offer, which is expected to open on 15 November, is being undertaken as part of an ongoing process to review and adjust BSPG’s capital structure, reflecting the company’s strong operating and financial performance over recent years.

Blue Star Print Group Chairman Tom Sturgess said that funds raised by the bond offering are expected to be used to repay BSPG’s senior debt and also potentially the company’s existing Subordinated Bonds. “Over the longer term, however, BSPG may use the funds to pursue future growth opportunities and potentially pay dividends on, or redeem, some of its Redeemable Preference Shares,” Mr Sturgess said.

Existing Subordinated Bondholders will be offered a limited opportunity to rollover their bonds into the new issue of Capital Bonds. There are conditions to this rollover offer which will be set out in the Investment Statement and Prospectus.

The Capital Bonds Offer will be available only to New Zealand investors. It is anticipated that the Capital Bonds will be listed on the NZDX.

Goldman Sachs JBWere and First NZ Capital have been appointed joint lead managers of the offer.

ENDS

For further information contact:
Keith Brodie, Managing Director on (09) 4770400; or
Tom Sturgess, Chairman on (03) 5457600; or
Rachel Catanach on 0274 322 784


Blue Star Print Group
Blue Star Print Group is a leading Australasian commercial printing group headquartered in Auckland. It is New Zealand’s largest multi-disciplined full service print provider and also has a significant presence in Australia through its operations in Sydney and Melbourne. BSPG employs over 1,200 staff within three divisions and a labels business. Its portfolio of established brands, including McCollams, Nicholsons, Format, Printlink, Securacopy, Webstar, BSP Integrated Solutions and BSP Logistics in New Zealand and Link Printing, Kings, Craftsman, Webstar, Rapid Labels, BSP Integrated Solutions and BSP Logistics in Australia, services a diversified customer base in both countries. Clients include agencies and departments of the New Zealand government and many of Australia and New Zealand’s leading corporates and financial institutions. Over the past four years, it has undertaken an extensive $89 million capital expenditure programme that has resulted in modern technologies across all business units. Blue Star Print Group generated revenues of NZ$368 million in FY05 and EBITDA of NZ$51 million (which includes net abnormal gains and provisions of $4.9 million). BSPG is a privately owned company, with senior management participation.



Dated: 1 November 2005

Signed: Keith Brodie, Director