Blue Star Print Group launches new web printing business in Australia

New Zealand's largest commercial print provider Blue Star Print Group is expanding its operation in Australia, with the launch of Webstar Australia, a new web offset printing business in Sydney.

Webstar Australia's purpose-built 6,000 sq m facility offers customers high quality web offset printing on the latest technology printing presses. Press commissioning was completed ahead of schedule with the first commercial print runs coming off the press on Monday, 26 November.

Blue Star Print Group chief executive Keith Brodie said the launch of Webstar Australia was an important part of the company's overall strategic priorities.

"As well as offering the most modern web offset equipment, Webstar Australia is located next to our existing sheetfed printing and mail house operations. This will ensure a strong interface between all our Sydney operations and enable us to offer customers seamless access to our wide range of printing products and solutions."

Brodie said key markets for Webstar Australia would be high quality magazines, large-run corporate communications, volume sheetfed runs and direct mail products.

Webstar Australia is a division of Blue Star Print Group's successful New Zealand Webstar operation, which prints a wide range of magazines, mailers and catalogues and also holds the contract for printing all telephone directories in this country.

Brodie said Webstar Australia would draw on the expertise existing in the New Zealand operation, with a number of key appointments also made from within the web printing industry in Australia.

The new Sydney facility will employ about 25 people initially and Brodie said it already had strong forward bookings that would enable it to meet its revenue forecast for Australia for the year ending June 2002.

The expansion has been funded out of operating cash flows and Brodie said it was planned to install further capacity at the site in the near future.

Australia currently accounts for 41% of Blue Star Print Group's total sales and 46% of EBITDA. With the expansion of Webstar across the Tasman, Australia will become a more significant part of the overall operations of Blue Star Print Group.

Last month, as part of the funding arrangements for the recently completed management buy-out, the company launched a fully underwritten, unsecured, $45 million bond issue in New Zealand, offering 10.75% interest. The offer, which has been arranged by Credit Suisse First Boston (a member of the New Zealand Stock Exchange), is scheduled to close on 18 January 2002.

Brodie said Blue Star Print Group's debt repayment plans were on track and the company would make a $4 million debt repayment on 30 November 2001.

For further information please contact:

Keith Brodie
Chief Executive
Blue Star Print Group
Phone 09) 477 0402
Mobile (0274) 809 768