ANNUAL MEETING RESCHEDULED

19 September 2008

Because of delays in the finalization of Dorchester Finance’s deferred repayment plan, Dorchester Pacific has rescheduled its Annual General meeting.

Dorchester Finance has been revising the proposed plan in consultation with the trustees and independent advisors.  This process should be concluded by next week.

The Board of Dorchester Pacific anticipates that the final plan will require some further provisions to be made.  The quantum of these provisions will be able to be determined when the plan is complete.

The vote by Dorchester Finance’s stock and note holders on the final plan is expected to be held in late October.  Once a date for this meeting is confirmed, formal notice of Dorchester Pacific’s Annual Meeting will be issued as well as an announcement regarding the re-opening of director nominations in accordance with NZX Listing Rule 3.3.2.

Under the company’s constitution, Mr Barry Graham retires as a director by rotation.  The other directors have asked Mr Graham to stand for re-election at the Annual Meeting to oversee, as Chairman of the Board, the implementation of the proposed deferred repayment plan. Mr Paul Byrnes will be stepping down and seeking re-election as a director at the Annual Meeting as a result of his move to an executive role.

6.1% of shareholders have requested an EGM to put the following resolutions proposed by the New Zealand Shareholders Association:
“That the company appoint a liquidator immediately following the passing of this resolution.”
Alternatively, if that resolution is defeated, to consider the following resolutions:
“That Barry Graham be removed as a director.”
“That Paul Byrnes be removed as a director.”

The EGM will be held on the same day as the Annual Meeting.


Ends