Shareholder Information

Directors Non-executive directors receive fees determined by the Board on the recommendation of the Remuneration Committee plus reasonable travelling, accommodation and other expenses incurred in the course of performing duties or exercising powers as Directors. Shareholders approved a total pool of $240,000 for the remuneration of non-executive directors in December 2005. Annual Directors’ fees were set at $80,000 for the Chairman and $40,000 for each non-executive director with eff ect from 1 December 2005. Directors’ fees were not paid previous to this date.

Brent Robinson and Darren Robinson are employed by as Managing Director and Marketing Director respectively and receive salary and other remuneration and benefi ts in respect of their employment. Until the end of March 2006 Warren Robinson was also employed as a consultant for which he received a monthly fee of $3,000.

The following people held offi ce or ceased to hold offi ce as a Director during the year and received the following remuneration including benefi ts during the year.

Directors Category Remuneration Current Director or Name Date Appointed or Resigned

Bryan Mogridge Independent Chairman $26,667 Appointed 18 November 2005

Brent Robinson Executive $105,980 Current

Darren Robinson Executive $110,355 Current

Warren Robinson Non-executive $91,877 Current

Peter Maire Non-executive $13,333 Appointed 18 November 2005

Bruce Irvine Independent $13,333 Appointed 18 November 2005

Marjorie Robinson Non-executive $0 Resigned 18 November 2005

Directors’ Interests Refl ecting the listing of Rakon Limited on the NZX on 16 May 2006, disclosures of Directors interests include all disclosures made until 31 May 2006. Those disclosures made in the period 1 April 2006 to 31 May 2006 are denoted with an asterisk (*).

Tahia Investments Limited, Brent Robinson, Darren Robinson and Ahuareka Trustee Limited have each agreed that shares held by each of them cannot be transferred (except in limited circumstances) until 30 days after the date Rakon makes its preliminary announcement to NZSX for the fi nancial year ending 31 March 2007.

Trident Investments Limited, a company associated with Warren Robinson, Brent Robinson and Darren Robinson have leased premises to Rakon on arms-length, commercial terms under Deeds of Lease dated 23 August 2005 between Rakon and Trident Investments Limited and will receive rental payments from Rakon.

As permitted by the Companies Act 1993, the Company has granted certain indemnities to the Directors and specifi ed employees of the Company or any related company in respect of liability and legal costs incurred by those Directors and specifi ed employees in their capacity as Directors and/or employees of the Company or any related company. As permitted by the Companies Act 1993, the Company has arranged a policy of Directors’ and Offi cers’ Liability Insurance which insures those persons indemnifi ed for certain liabilities and costs.

44 In accordance with Section 140(2) of the Companies Act 1993 • Benefi cial interest in 24,060,024 ordinary shares in Rakon and Section 19(U) of the Securities Markets Act 1988, the Limited (Ahuareka Trustee Limited as the registered Directors named below have made a general disclosure of holder).* interest, by a general notice disclosed to the Board and entered in the Company’s interests register. General notices were given Darren Paul Robinson by these Directors which remain current at 31 May 2006: Shareholder in: • Benefi cial interest in 31,838 ordinary shares in Rakon Bryan William Mogridge Limited as result of transfer by Ahuareka Trustee Limited. Chairman & Director of: • Benefi cial interest in 9,914,180 ordinary shares in Rakon • Guardian Healthcare Limited Limited, following share split of 31,838 ordinary shares at a • Momentum Energy Limited ratio of 311.394549.* • Designworks Enterprises IG Limited • Benefi cial interest in 9,914,180 ordinary shares in Rakon • Waitakere City Holdings Limited Limited.* • Enterprise Waitakere • Benefi cial interest in 234,043 redeemable ordinary shares in Rakon Limited (Rakon PPS Trustee Limited as registered Director of: holder).* • Limited • Benefi cial interest in 24,060,024 ordinary shares in Rakon • Pyne Gould Corporation Limited Limited (Ahuareka Trustee Limited as the registered • TRIO Print Limited holder).* • West Trust Services Limited Warren John Robinson Sole Shareholder & Director of: Shareholder in: • Mogridge and Associates Limited • Benefi cial and non-benefi cial interest in 134,962 ordinary shares in Rakon Limited held by Ahuareka Trustee Limited, Trustee & Benefi ciary of: as a result of the distribution in specie on liquidation of • Mogridge Family Trust Rise Holdings Limited. Shareholder in: • Benefi cial and non-benefi cial interest in 128,124 ordinary shares in Rakon Limited held by Ahuareka Trustee Limited, • Benefi cial interest in 400,000 ordinary shares in Rakon as result of transfer to Brent Robinson. Limited held by Bryan Mogridge.* • Benefi cial and non-benefi cial interest in 121,286 ordinary • Non-benefi cial interest in 859,137 ordinary shares in shares in Rakon Limited held by Ahuareka Trustee Limited, Rakon Limited, as director of trustee company Rakon ESOP as result of transfer to Darren Robinson. Trustee Limited. • Benefi cial interest in 21,292,225 ordinary shares in Rakon • Non-benefi cial interest in 1,100,000 redeemable ordinary Limited held by Simon Palmer as nominee for the shares in Rakon Limited, as director of trustee company Ahuareka Trust, following share split of 68,377 ordinary Rakon PPS Trustee Limited.* shares at a ratio of 311.394549.* Brent John Robinson • Benefi cial and non-benefi cial interest in 37,767,799 Shareholder in: ordinary shares in Rakon Limited held by Ahuareka Trust, • Benefi cial interest in 31,838 ordinary shares in Rakon following share split of 121,286 ordinary shares at a ratio Limited as result of transfer by Ahuareka Trustee Limited. of 311.394549.* • Benefi cial interest in 9,914,180 ordinary shares in Rakon • Benefi cial interest in 59,060,024 ordinary shares in Rakon Limited, following share split of 31,838 ordinary shares at a Limited held by Ahuareka Trustee Limited, following ratio of 311.394549.* transfer of 21,292,225 ordinary shares held by Simon Palmer.* • Benefi cial interest in 9,914,180 ordinary shares in Rakon Limited.* • Benefi cial and non-benefi cial interest in 24,060,024 ordinary shares in Rakon Limited held by Ahuareka Trustee • Benefi cial interest in 270,449 redeemable ordinary shares in Limited, following transfer of 35,000,000 ordinary shares to Rakon Limited (Rakon PPS Trustee Limited as registered new investors.* holder).*

45 Marjorie Susan Robinson Bruce Robertson Irvine Director of: Chairman and Director of: • Resigned as a director of Rakon Limited on November • Jade Stadium Limited 18, 2006. Director of: Shareholder in: • Pyne Gould Corporation Limited • Benefi cial interest in 1,363 ordinary shares in Rakon • City Holdings Limited Limited, as a result of the distribution in specie on • Market Gardeners Limited and Subsidiaries liquidation of Rise Holdings Limited. • Limited Charles Peter Maire • Skope Industries Limited Director of: • Canterprise Limited • Non-benefi cial interest as director of Tahia Investments • Syft Technologies Limited Limited which holds 53,062 ordinary shares in Rakon • Paulsen Holdings Limited (Owner of the House of Travel Limited. Group) Shareholder in: • Godfrey Hirst Limited and subsidiaries • Joint shareholder in Tahia Investments Limited, which • Christchurch City Facilities Limited holds 53,062 ordinary shares in Rakon Limited. Shareholder in: • Benefi cial interest in 100 ordinary shares in Tahia Investments Limited. • Benefi cial interest in 40,000 ordinary shares in Rakon Limited held by Bruce Irvine.* • Non-benefi cial interest in 16,523,218 ordinary shares in Rakon Limited, following share split of 53,062 ordinary • Non-benefi cial interest in 859,137 ordinary shares in shares at a ratio of 311.394549.* Rakon Limited, as director of trustee company Rakon ESOP Trustee Limited. • Non-benefi cial interest in 16,523,218 ordinary shares in Rakon Limited held by Tahia Investments Limited.* • Non-benefi cial interest in 1,100,000 redeemable ordinary shares in Rakon Limited, as director of trustee company Other: Rakon PPS Trustee Limited.* • Consultant to Navman NZ Limited, a customer of Rakon.

There were no notices from Directors of the Company requesting to use Company information received in their capacity as Directors which would not otherwise have been available to them.

Directors’ Shareholdings Directors’ shareholdings are shown as at balance date and as at 31 May 2006 refl ecting the change in ownership that occurred on 15 May 2006 immediately prior to the company listing on the NZSX.

Name 31 May 2006 31 March 2006

Bryan Mogridge shares held with benefi cial interest 400,000 - shares held with non-benefi cial interest 1 859,137 2,759 shares held with non-benefi cial interest 2 1,100,000 -

Brent Robinson shares held with benefi cial interest 33,974,204 221,501 shares held with benefi cial interest 3 270,449 - held by associated persons 10,363,611 33,201 held by associated persons 3 234,043 -

46 Darren Robinson - shares held with benefi cial interest 33,974,204 221,501 - shares held with benefi cial interest 3 234,043 - - held by associated persons 10,342,361 33,201 - held by associated persons 3 270,449 -

Warren Robinson - shares held with benefi cial interest 24,060,024 189,663 - held by associated persons 20,252,791 65,039 - held by associated persons 3 504,492 -

Peter Maire - shares held with benefi cial interest 16,523,218 53,062

Bruce Irvine - shares held with benefi cial interest 40,000 - - shares held with non-benefi cial interest 1 859,137 2,759 - shares held with non-benefi cial interest 2 1,100,000 -

1 Bryan Mogridge and Bruce Irvine jointly hold the same parcel of 859,137 ordinary shares as trustees of the Rakon ESOP Trustee Limited.

2 Bryan Mogridge and Bruce Irvine jointly hold the same parcel of 1,100,000 partly paid redeemable ordinary shares as trustees of the Rakon PPS Trustee Limited. As at 31 May 2006 5 cents of the $1.60 issue price was paid up on each of these securities.

3 Partly paid redeemable ordinary shares currently held by the Rakon PPS Trustee Limited. As at 31 May 2006 5 cents of the $1.60 issue price was paid up on each of these securities.

Employees’ Remuneration During the year the number of employees or former employees not being Directors of Rakon Limited received remuneration including the value of other benefi ts in excess of $100,000 in the following bands:

Remuneration Number of Employees

$100,000 - $110,000 2 $110,001 - $120,000 3 $120,001 - $130,000 - $130,001 - $140,000 1 $140,001 - $150,000 1 $150,001 - $160,000 - $160,001 - $170,000 - $170,001 - $180,000 1 $180,001 - $190,000 1 $190,001 - $200,000 2 $200,001 - $210,000 - $210,001 - $220,000 - $220,001 - $230,000 - $230,001 - $240,000 - $240,001 - $250,000 - $250,001 - $260,000 - $260,001 - $270,000 - $270,001 - $280,000 1

47 Substantial Security Holders The following information is given pursuant to Section 26 of the Securities Markets Act 1988. The following are recorded by the Company as at 31 May 2006 as Substantial Security Holders in the Company, and have declared the following relevant interest in voting securities under the Securities Markets Act 1988:

Name Shareholder

Ahuareka Trustee Limited - Non-Benefi cial Relevant Interest 24,060,024

Warren John Robinson - Benefi cial Relevant Interest 24,060,024

Tahia Investments Limited - Benefi cial Relevant Interest 16,523,218

Charles Peter Maire - Non-Benefi cial Relevant Interest 16,523,218

Brent John Robinson - Direct Benefi cial Relevant Interest 9,914,180 - Direct Benefi cial Relevant Interest1 270,449 - Benefi cial Relevant Interest 24,060,024

Darren Paul Robinson - Direct Benefi cial Relevant Interest 9,914,180 - Direct Benefi cial Relevant Interest1 234,043 - Benefi cial Relevant Interest 24,060,024

Fisher Funds Management Limited - Non-Benefi cial Relevant Interest 6,101,040

1 Partly Paid Redeemable Ordinary Shares

106,250,000 fully paid voting securities of the Company were on issue as at 31 May 2006. A further 1,100,000 partially paid securities were on issue as at 31 May 2006. These partly paid voting securities entitle the holder (Rakon PPS Trustee Limited) to proportionate voting rights to the extent of the issue price paid. As at 31 May 2006 5 cents of the $1.60 issue price was paid up on each of these securities.

Spread of Security Holders as at 31 May 2006

Size of Shareholding Number of Holders % Total Number Held %

1 - 999 77 3.67% 37,818 0.04% 1,000 - 4,999 1,316 62.73% 3,615,901 3.40% 5,000 - 9,999 387 18.45% 2,261,019 2.13% 10,000 - 49,999 260 12.39% 4,399,902 4.14% 50,000 - 99,999 26 1.24% 1,582,949 1.49% 100,000 - 999,999 25 1.19% 5,651,030 5.32% 1,000,000 - PLUS 7 0.33% 88,701,381 83.48%

TOTAL 2,098 100.00% 106,250,000 100.00%

48 Largest Security Holders as at 31 May 2006

Name Shareholding %

Ahuareka Trustee Limited 24,060,024 22.64% Central Securities Depository Limited 23,848,699 22.44% Tahia Investments Limited 16,523,218 15.55% Brent John Robinson 9,914,180 9.33% Darren Paul Robinson 9,914,180 9.33% Zeus Zeta Limited 3,304,830 3.11% Custodial Services Limited 1,136,250 1.06% Rakon ESOP Trustee Limited 859,137 0.80% Marjorie Susan Robinson 424,431 0.39% Custodial Services Limited 415,300 0.39% Bryan Mogridge & Philip Wells 400,000 0.37% First NZ Capital Custodians Limited 390,162 0.36% Peter Hanbury Masfen & Joanna Alison Masfen 340,000 0.32% UBS New Zealand Limited 300,000 0.28% South Canterbury Finance Limited 250,000 0.23% Macquarie Equities Custodians Limited 240,000 0.22% Hubbard Churcher Trust Management Limited 195,000 0.18% John Heywood Taylor & Marie Roberta Taylor & Richard Heywood Taylor 156,000 0.14% Forbar Custodians Limited 151,500 0.14% David Joseph Gammage 147,000 0.13%

In addition 1,100,000 redeemable ordinary shares are held by Rakon PPS Trustee Limited. As at 31 May 2006 5 cents of the $1.60 issue price was paid up on each of these securities.

New Zealand Central Securities Depository Limited (NZCSD) is a depository system which allows electronic trading of securities to member. As at 31 May 2006, the ten largest shareholdings in the company held through the NZCSD were:

Name Shareholding

Tea Custodians Limited 4,833,855 NZ Superannuation Fund Nominees Limited 3,121,234 Banking Corporation - Client Assets No 2 2,625,864 National Nominees New Zealand Limited 2,138,344 Accident Compensation Corporation 1,550,000 New Zealand Equity Nominee Pool 1,300,000 Custody and Investment Nominees Limited 1,026,500 AMP Investments Strategic Equity Growth Fund 992,113 Citibank Nominees (New Zealand) Limited 852,100 AMP Life Limited 739,247

NZX Waiver NZX granted a waiver from the requirements of NZSX Listing Rule 8.1.5 in relation to the non-voting partly paid shares held by Brent Robinson and Darren Robinson under the Employee Share Growth Plan. NZSX Listing Rule 8.1.5 provides for partly paid shares to have voting rights in proportion to the amount paid up and the waiver provides that Brent & Darren Robinson’s shares can remain non-voting so as to avoid triggering Takeovers Code obligations.

49 Employee Share Plans b) a further one third of the Options granted on any date of grant become exercisable on the 2nd anniversary of that Management Share Purchase Plan date of grant; Rakon established a share purchase plan to enable selected managers of Rakon to acquire Shares in the Company c) a further one third of the Options granted on any date of through the Plan Trustee, Rakon ESOP Trustee Limited. Under grant become exercisable on the 3rd anniversary of that the Share Purchase Plan, Rakon off ered selected managers date of grant, the opportunity to acquire Shares and loaned participating managers the purchase price of the Shares off ered on an provided that all Options become exercisable where there is interest-free basis. a change of control of Rakon whereby a person (excluding Rakon and the Robinson family and interests associated with Under the terms of the Share Purchase Plan, 2,759 Shares the Robinson family) and that person’s Associates hold or were issued to Rakon ESOP Trustee Limited to hold on behalf control more than 50% of the total voting rights of Rakon. of the participating managers on 17 March 2006 (now 859,137 Shares following the share split of 311.394549 to Exercisable Options may only be exercised if, at the time of one), and the total aggregate amount loaned by Rakon to exercise, the volume weighted average selling price per Share participating managers is $520,000. for all the Shares in Rakon traded on the NZSX during the 10 NZSX trading days prior to the exercise date is at least equal Shares issued under the Share Purchase Plan are held on trust to the benchmark price applicable at that date. by Rakon ESOP Trustee Limited. The Shares cannot be sold or otherwise dealt with by the participating managers for a The initial benchmark price will apply to the period from period of 18 months from the date of issue. At any time after the date of grant to the date when Rakon announces its the end of this period the participating manager may request results for the 6 months ending 30 September 2007. A the Trustee to transfer the relevant Shares to him or her. The new benchmark price will subsequently be calculated Trustee will not transfer the Shares to a participating manager at 6 monthly intervals by increasing the last calculated until the loan owed by that manager has been repaid in full. benchmark price be 14% per annum compounded total shareholder return. Employee Share Option Scheme Rakon has established an Employee Share Option Scheme All Options which have not been exercised by the 4th for selected employees of Rakon. Options are granted free of anniversary of the date of grant will lapse and will charge to Eligible Employees, as part of their remuneration, automatically cancel. but are only exercisable if specifi ed share price performance benchmarks are met. Each Option entitles the holder to Options do not carry voting rights or rights to participate purchase one Share in Rakon pursuant to the terms of the in any dividends or future Share issues. Shares issued upon Employee Share Option Scheme. As at 31 May 2006, Rakon the exercise of Options or on cancellation of Options will has granted to Eligible Employees a total of 1.9 million carry the same rights and will be issued on the same terms Options. as existing Shares then on issue and will rank equally in all respects with existing Shares. There is no application fee or other sum payable by Eligible Employees for Options, but Option Holders wishing to Share Growth Plan exercise their Options will be required to pay an Exercise Rakon has established a Share Growth Plan to enable Price, which, in the case of the Options currently granted, is selected senior executives of Rakon to acquire Shares $1.60 per Share. through a Trustee, Rakon PPS Trustee Limited.

Provided certain conditions are met, Options become 1.1 million Plan Shares, were issued to participating exercisable at the following times: executives on 16 May 2006. The Plan Shares have an issue price of $1.60. On the issue date, each of the participating a) one third of the Options granted on any date of grant executives made an initial payment of 5c per Plan Share. become exercisable on the 1st anniversary of that date While the Plan Shares remain held by the Trustee, an annual of grant; payment of 5c per Plan Share will also be required.

50 Provided certain conditions are met including that the provided that a request may be made in respect of all of transfer request is received by the Trustee at a time when those Plan Shares that remain held by the Trustee from the the volume weighted average selling price per Share for all date when there is a change of control of Rakon, meaning the Shares in Rakon traded on the NZSX during the 10 NZSX that a person (excluding Rakon and the Robinson family trading days prior to the date of the request is at least equal and interests associated with the Robinson family) and that to the benchmark price (as described under the Employee person’s Associates hold or control more than 50% of the Share Option Scheme) applicable at that date, an executive total voting rights of Rakon. may request the Trustee to transfer the Plan Shares held by the Trustee on behalf of that executive as follows: An executive ceases to be entitled to require the Trustee to transfer any relevant Plan Shares to the executive if the a) no request may be made prior to the 1st anniversary of executive does not request that such a transfer be made the issue date; before the 4th anniversary of the issue date or if the executive ceases to be employed by Rakon other than by reasons of b) a request may be made in respect of one third of the Plan death or total and permanent disablement. Shares issued on any issue date from the 1st anniversary of that issue date; The Plan Shares carry proportionate dividends and rights to share in the surplus assets of the Company on a liquidation to c) a request may be made in respect of a further one third the extent of the proportion of the issue price paid up on the of the Plan Shares issued on any issue date from the 2nd Plan Shares. The Plan Shares carry no voting rights until such anniversary of that issue date; time as the holder elects for the relevant Plan Shares to carry voting rights to the extent of the proportion of the issue price d) a request may be made in respect of a further one third paid up on the Plan Shares. Subject to the voting position of the Plan Shares issued on any issue date from the 3rd described above, Plan Shares transferred to the executive will anniversary of that issue date, be fully paid ordinary shares ranking equally with all other ordinary shares in Rakon.

51