IMPORTANT ANNOUNCEMENT

There are some important developments about which I wish to inform my valued customers and suppliers.

As many of you are aware, JM McMahon & Co Pty Ltd (“JMM”) has had a Joint Venture marketing and logistics agreement with New Zealand Dairies Ltd (“NZDL”) since 2006, which is the year NZDL was formed as a company. This arrangement is managed by the JV company Dairy Exports New Zealand Ltd (“DENZL”).

Very recently, I sold my shares in DENZL to NZDL in return for benefits which include continuing rights to market the DENZL brand of milk powder internationally and an annual allocation of NZDL’s whole milk powder production.

This share sale follows the successful sale of my shares in the production company NZDL to Nutritek, a Russian-based producer of infant milk powders, and their establishment of a majority shareholding in NZDL.

The NZDL and DENZL share sales provide various opportunities for me, which brings me to another development. Between late June’09 and late January’10, my wife and I plan to give our children a broad overview of the world by taking them out of school for a half year and giving them a different kind of education. We plan to spend up to 7 months travelling in different regions of the world. As our children are 12 and 14 years old, we feel this is an ideal time for such a trip, and presents a once-in-a-lifetime opportunity for our family to do this together.

As your business is very important to me, and to ensure the ongoing management of our relationship, an arrangement has been formed with Australian Dairy Goods Pty Ltd (“ADG”) to conduct JMM’s business through ADG’s commercial departments. This arrangement includes logistics, documentation and administration functions and will commence for shipments May 18 onwards.

ADG is a successful dairy exporter established in 1999, based in Melbourne, and run by Andrew Paterson. ADG has developed a global network which includes end users and distributors in Latin America, the Middle East and Europe.

During my travel period I will be in semi-regular contact with the ADG office; however, Andrew and his experienced team will be on hand to answer all enquiries. I will be back in Australia by the end of January’10 when I will resume the day to day management of your account.

With these developments, it is no longer necessary for me to maintain the office in Gordon, Australia. This office will close on May 15. Thus, the arrangement with ADG enhances efficiency, while also allowing this family opportunity to proceed.

Every effort has been made to ensure the smooth transition of existing and future shipments. I will soon be in contact with those of you who have shipments in the system now to discuss these in further detail.

I will also be in touch soon with those of you who do not have shipments in the system with us at present, in order to provide contact details for future business.

I can assure you that service will not diminish under the arrangement with ADG; on the contrary, we believe that business opportunities will be enhanced.

I would like to take this opportunity to thank you for your great support to date. I look forward to further building our business together in the years to come.

Should you have any questions, please let me know.

JM McMahon & Co Pty Ltd


John McMahon
Managing Director

denzl


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