Ann: GENERAL: ATM: Strategic Review Announcement

• Release Date: 18/04/12 10:30
• Summary: GENERAL: ATM: Strategic Review Announcement - Market Update
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ATM
18/04/2012 08:30
GENERAL

REL: 0830 HRS A2 Corporation Limited

GENERAL: ATM: Strategic Review Announcement - Market Update

NZAX and media release
18 April 2012

Strategic Review Announcement

MARKET UPDATE

A2 Corporation Limited (NZAX:ATM) ("A2C", "the Company") announces today that
it is undertaking a strategic review of its options to accelerate growth and
maximise shareholder value. This review is being carried out in light of the
Company's strong growth options as well as approaches received from parties
potentially interested in partnering with A2C.

a2(TM) brand milk has been successfully established as a premium priced fresh
milk product, positioned on a broad health platform focusing on digestive
wellbeing.  It is the fastest growing milk brand in the Australian market and
the major driver of category growth nationally, accounting for approximately
5.0% of grocery channel market share by value.

The Company recently took important steps towards the marketing of its
products in the significant UK and Ireland fresh milk markets by forming a
partnership with Robert Wiseman Dairies, Britain's largest fresh milk
company.  Preparation for the launch, scheduled for September 2012, is well
under way.

A2C is separately advancing plans to launch an a2(TM) infant formula product
into the Chinese market, in conjunction with a strong local marketing
partner.  In that context, A2C has recently entered into an agreement with
Synlait for the manufacture and supply of a2(TM) nutritional powders,
including infant formula, for sale by A2C in international markets, including
China.

In March, the Company successfully raised NZ$5.2m in capital at an issue
price of NZ37 cents per share to provide additional flexibility for growth.

A2C Chairman, Cliff Cook said: "The Company has achieved outstanding success
recently and is gaining significant momentum from the successful
commercialisation of its brands in Australia and increasing awareness of A2
milk in other markets.

"As a result, the Company has numerous growth avenues available to it, both
in terms of geographic and product expansion.

"We are conscious of ensuring that we lay the appropriate platform for growth
in new markets and the next strategic steps we take are important to ensure
we optimise shareholder value. This, coupled with recent approaches from
industry participants, make this the appropriate time to undertake a full
review of our strategic options to seek to accelerate growth and shareholder
value creation."

A2C CEO, Geoffrey Babidge said:  "The strategic review will have regard to
the fact that A2 is already well positioned to maximise long term growth
standalone as well as considering partnership options to support expansion,
in specific jurisdictions or more broadly."

The Board has retained Greenhill Caliburn as principal advisor for the
strategic review with support from Clavell Capital.

The Company will continue with its business as usual during the review
process and does not intend to disclose further developments regarding the
process until the review is completed. The review may take several months
and it is possible that it will result in no changes to the existing
business.
End CA:00221918 For:ATM    Type:GENERAL    Time:2012-04-18 08:30:05