Ann: Dividend/Distribution - URW, page-2

As a new URW holder, I would appreciate any comment by wiser heads on my URW dividend calculations (all figures approximate).

Firstly, although 2A.2 of the dividend announcement says this .27 Euro dividend relates to 12 months, it is in fact for a 6 month period. We should therefore reasonably expect a similar dividend in 6 months time.

At the current exchange rate this converts to an Australian dollar dividend of .27/.59 = 46 cents Australian (very approximately and subject to exchange rate fluctuations).

This 46 cent dividend is subject to a withholding tax of 28%, as noted in 2A.13 of the dividend announcement. This leaves approximately 33 cents Australian which will be distributed on 9 April.

Furthermore the opportunity exists for individuals to reduce the 30% French component of the withholding tax to 12.8%. This would add an additional 7.5 cents plus to the dividend (46c times 17.2% tax reduction). I note that the reduction is different for 'entities' and a $114 fee applies, so this opportunity is not for everyone.

Therefore on my calculations, the URW annual distribution is approximately 66 cents Australian rising to approximately 81 cents (if you can avail yourself of the tax reduction opportunity).

I would be grateful for any comments, especially any experiences with applications to reduce the French Withholding tax.