EQUIPMENT BOOK SALE

13 October 2008

Dorchester Finance Limited, a subsidiary of Dorchester Pacific Limited, has agreed to sell the equipment rentals portion of its loan book for $12.5 million to Rent Plus Limited.

$8 million of the purchase price is payable on completion with the balance payable over 2 years under a vendor loan and retention arrangement.

Chairman of Dorchester Pacific Limited, Barry Graham, said that this sale of receivables at close to book value followed the company's decision to realise assets to enable repayment of investors.

The transaction for the sale of receivables has the approval of the trustees for Dorchester Finance.

Subject to approval from Trustees, Dorchester Finance hopes to present a Deferred Repayment Plan to its investors in late October or early November.

Ends