TEXT-NZ's Vector raises NZ$150 million in bonds

(The following statement was released by the company)

WELLINGTON, May 28 - Vector Limited announced today that it has raised $150 million through a five year direct unsecured, unsubordinated fixed rate offer of Senior Bonds.

The Senior Bonds have a term of approximately five years (maturing in October 2014) and offer investors an interest rate of 7.80 per cent per annum, payable semi-annually. The Senior Bonds have been assigned a credit rating of BBB+ by Standard & Poor's.

The offer opened on 4 May and closed on 27 May, and the Senior Bonds are expected to be quoted on the NZDX on 29 May. The details of the issue, as required by listing rule 7.12.1, are detailed below.

Vector intends to use the net proceeds raised from the sale of Senior Bonds for general corporate purposes.

Issuer Vector Limited

Class of security issued and ISIN Senior Bonds VCT050 Number of securities issued 150,000,000

Senior Bonds Nominal value / Issue price $1.00 per Senior Bond, 150,000,000 in aggregate Senior Bonds

Payment method Cash

Amount paid up (if not in full) Paid in full

Percentage of the total class of securities issued 100%

Reason for the issue Issue of Senior Bonds by Vector for general corporate purposes.