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28 July 2004

News Release

Overseas "Brokers" Never Stop Trying

Overseas "brokers" are still trying to trick New Zealanders out of their money.

"If people are contacted out of the blue by someone from overseas, they should be very suspicious," says Norman Miller, Director of Enforcement at the Securities Commission.

"We've had a lot of enquiries over the last few weeks about a company called Bradley Chen & Associates. The company offers people a share swap, which seems quite tempting. People may want to exchange worthless shares for better ones, but this isn't a genuine offer," Norman Miller says.

"An up front fee in the form of a guarantee is part of the transaction. If people pay the fee, they are unlikely to see their money again."

Norman Miller is concerned that this particular entity has gone to some trouble to make their offer look genuine, by using the name of a bona fide company in their share offer, Irvine North Credit Union Limited (based in Scotland). Although this company does exist, it has no connection at all with Bradley Chen. Nor does it have a website, or a London office, as claimed by Bradley Chen.

"Our UK counterpart, the Financial Services Authority (FSA), has issued a warning about Bradley Chen. The company is not licensed to operate in the UK. A copy of the warning issued by the FSA is attached.

"We strongly encourage any New Zealander who wants to buy overseas shares to do so through a local intermediary which is accountable under New Zealand law."

The Securities Commission website (www.seccom.govt.nz) lists overseas brokers who have contacted New Zealanders with dubious share offers. Bradley Chen has been added to that list.

Contact: Catherine Chapman ph 471 7659

ALERT

The Financial Services Authority (FSA) has today published this statement in order to alert investors who may be considering securities transactions promoted by BRADLEY CHEN & ASSOCIATES LIMITED. We understand that some investors may be under the impression that these transactions involve Irvine North Credit Union Limited of Redburn Community Centre, Dickson Drive, Irvine, Ayrshire, Scotland KA12 9HB.

The purpose of this statement is to advise members of the public that

Bradley Chen & Associates

is not authorised under the Financial Services and Markets Act 2000 (FSMA) to carry on a regulated activity in the UK. Regulated activities include, amongst other things, advising on investments and dealing and arranging deals in investments ("investments" include stocks and shares). The FSA believes that the firm may be promoting its services to residents of New Zealand and Australia.

Irvine North Credit Union Limited is authorised by the Financial Services Authority but they have advised the FSA that they have no connection with Bradley Chen & Associates and are not involved in holding refundable margin payments in relation to securities transactions or guaranteeing such margin payments. Irvine North Credit Union Limited have also advised us that they do not operate a web site www.irvinenorthcredit.com.

Investors should be aware that any money invested with a company or individual not authorised by the FSA will not be covered by the Financial Ombudsman Service or the Financial Services Compensation Scheme.

To find out whether a company or individual is authorised go to the FSA Firm and Person Check Service at www.moneymadeclear.fsa.gov.uk/

Date: 24 July 2004

Note:

For an up-to-date list of unauthorised firms issued by the FSA go to www.fsa.gov.uk/Pages/Doing/Regulated/Law/Alerts/index.shtml

For more details about the tactics that are commonly adopted by unauthorised firms targeting UK investors see the warning issued in April 2003 available at www.fsa.gov.uk/pubs/press/2003/056.html, the warning issued in May 2002 at www.fsa.gov.uk/Pages/Library/Communication/PR/2002/056.shtml and the warning issued in May 2000 at www.fsa.gov.uk/Pages/Library/Communication/PR/2000/071.shtml