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Report on Trading in the Shares of Fletcher Challenge Limited in December 1999

FLETCHER CHALLENGE
NEWS RELEASE

AUCKLAND, 23 December 1999 - Paul Baines, speaking on behalf of the Board of Fletcher Challenge Limited, said the Board had today accepted with regret the resignation of Chairman Kerry Hoggard from the Board.

Mr Baines acknowledged Mr Hoggard's very significant contribution to Fletcher Challenge during his tenure as both Director and Chairman, in particular his leadership at a demanding time in the company's history.

However, Mr Baines confirmed that Mr Hoggard's departure would not alter the stated direction of the Board on the future of the Company.

The Board would meet today to begin the process of selecting Mr Hoggard's successor, Mr Baines said.

A statement from Mr Hoggard is attached.

STATEMENT BY K.M. HOGGARD

It is with deep regret that I have to adivese the market that I have today submitted my resignation from the Board of Fletcher Challenge Limited.

This decision arises out of a share trade made in my own name following the last Board Meeting held on the 14th of this month and the company's public announcement made on 16th December.

On the afternoon of the 15th, I gave instructions to purchase equities and on confirmation advised the company by facsimile later that day.

Paper 120,000 shares

Forests 150,000 shares

Building 60,000 shares

Energy 60,000 shares

The company announcement was intended for 15th Decemeber but was delayed for various reasons. I failed to consider this appropriately and must accept that I have as a result technically breached the Company's share trading regulations.

The intent of the purchase of these shares was to demonstrate to the market my personal financial commitment to the Company to carry through the critical restructuring that was the subject of the announcement.

I deeply regret that action and any embarrassment caused to the Company and my fellow Directors.

I have contacted the broker and ascertained that the possible loss to those shareholders who sold to me is $58,790. This amount has today been paid to enable them to reimburse the sellers concerned.

I consider that because of this incident my credibility will be in question. In addition I do not want to damage the reputation of Fletcher Challenge Limited or it's other Directors. I have therefore, as stated above, decided to resign from the Board and its Chairmanship with immediate effect.

It must also be stated that there was no intention at any time to deliberately mislead any person or circumvent any company or insider trading rules. It was in my compliance with these rules following the purchase and notification to the Company, that my attention to this breach became focused.

I also have a deep regret that I will not now be in a position to continue to contribute to the restructuring process over the next months.

K.M. HOGGARD

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