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Friday July 23rd 2004

2004 ANNUAL REPORT ANNOUNCEMENT

[Whangarei] - Northpower is pleased to announce a net profit for the financial year ending 31st March 2004 of $10.1m up 7.7% on last years result. The Board has also declared a final dividend of $3.5m to be paid to the Northpower Electric Power Trust.

Chairman, Warren Moyes, said “the result was achieved in addition to the company providing a $6m Line Charge Holiday to customers during February 2004, and furthermore the very good value received by our customers was confirmed by the Commerce Commission’s first assessment under the Targeted Control Regime, where Northpower was one of only three lines companies in New Zealand to score the maximum points for both productivity and low prices”.

Total income for the year was up 21% to $78.9 million, with the Contracting Division growing 39% over the year to contribute $46.5 million.

Safety remains a priority for Northpower, and we are proud to report that Northpower Contracting completed one million hours of work on Vector’s network without a lost time injury. Northpower’s lost time injury frequency rate across the total business is a very creditable 2.4 accidents per million hours worked.

Northpower is strongly expanding its position as a leading supplier of electricity distribution, network maintenance and construction services. The contracting business expansion into Rotorua and North Shore has also proved very successful.

The Network business performed ahead of financial targets due to lower than expected maintenance and transmission cost. The Wairua Hydro Station performed extremely well, with net revenue 55% above target. Network reliability SAIDI (average number of minutes per customer that power is not available) improved significantly over the previous year by 53 minutes, from 172.5 to 119.5 minutes.

“Northpower is committed to growing a sustainable business based upon sound commercial principles that provide increasing benefits to its Northland owners and network users. The business is focused on ensuring that a safe, reliable, hassle-free service is provided.” Mr Moyes said.

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