NZ Wool Services International Limited

Registered Office Address
Unit 3  
Ground Floor  
585 Wairakei Road  
Christchurch  

Directors
DWYER, Michael Brian Francis
KIRKE, Derek Mervyn
NATTRASS, Stuart John
MORRISON, Patrick George
BORREN, Arthur
JACKSON, Peter Alexander Hughlings
HOULDSWORTH, David Michael John

Background
Incorporated: 13-DEC-1991

New Zealand Wool Services International (WSI) is a wool export company
and processor based in Christchurch, with representative offices in   
China and India and a wholly owned trading subsidiary, Wool Services  
International (UK) Limited, operating from Bradford, England.         

WSI is a leading supplier of the highest quality wool to over 25      
countries around the world. It has major financial interests in       
technologically advanced wool scours, enabling it to meet exacting    
standards required by the market place.                               

Major Shareholders
Hellaby Holdings - 20%
Forresters New Zealand - 43%

Shares on Issue
72,844,272

Ownership Restrictions
None Known

Share Registry
BK Registries Ltd

Website
www.woolserv.co.nz


News

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Saturday, May 05, 2001 - Trade New Zealand
 
Investing in ultra-modern technology and engaging in face to face marketing have helped New  
Zealand Wool Services International become one of the major wool exporters in the country and
the recipient of a Trade New Zealand Export Commendation. The Export Commendation, which will
be presented by the Minister for Trade Negotiations, the Hon. Jim Sutton, in Christchurch on 
Friday 5 May, is specifically in recognition of Wool Services International�s (WSI)          
commitment to the India market, establishing an office in the market in 1996.                

Managing Director Michael Dwyer says WSI was the first, and to date the only New Zealand wool
exporter to open an office in India. He says it did so after various agents failed to achieve
the sales growth the company believed it could win in this major New Zealand wool buying     
country. "We were very lucky to find a very experienced and professional Indian national to  
head the office. He has played a major part in doubling our wool exports to India from $2.6  
million in 1996 to $6.3 million last year."                                                  

Dwyer says the company puts a strong emphasis on personalised marketing, meeting regularly   
with clients. As well as India, WSI has offices in China and the UK so it can service these  
major wool buying markets.                                                                   
Established in 1992 as a subsidiary of the New Zealand Wool Board, WSI was floated as a      
public unlisted company in 1996. In the eight years since it started, WSI has increased its  
share of New Zealand wool exports from 4.9 percent in year one to 15 percent and is now      
amongst the top three wool exporters in the country, with foreign exchange earnings expected 
to reach $113 million this year. About 90 percent of WSI�s product is exported to 25 markets,
including most of the major New Zealand wool buying countries. Its largest export markets are
China, India, Nepal, the UK, Europe and the Middle East. Ninety five percent of its wool is  
processed at its Kaputone and Whakatu plants. Dwyer says WSI is one of only two New Zealand  
wool exporters to own its own plants. He says this is an "essential ingredient" in terms of  
achieving consistently excellent quality and meeting client needs.                           

The coarse New Zealand wool is used mainly in carpets, upholstery fabrics, interior design   
fabrics and some clothing. Dwyer says WSI will develop new products when requested by clients
- different blends of wools, for example,, that allow the client to achieve certain effects in
the yarn. He says the company�s main competitive advantage is the quality of its product     
which is achieved through superior technology. "We have made a significant investment in     
technology and that is now paying off. We own one of the most modern and technologically     
advanced wool scours in the world at our Kaputone plant. We are able to produce an extremely 
high quality by using sophisticated technology to monitor all facets of the product required 
by the client. Investing in technology has not only improved the quality of our product, it  
has also helped us achieve productivity gains in excess of our competitors."                 

Dwyer says one of the biggest challenges faced by WSI is that most of its key markets are    
established with little potential for growth in total exports. The exception is the former   
Soviet Union, once a major buyer of New Zealand wool, Dwyer says it has the potential to     
again be a key market but is a long term prospect. "Another challenge is the �price          
mentality� of many of our major markets, with clients sometimes buying on price at the       
expense of quality. To help overcome this, we put a strong focus on building relationships   
with clients and earning credibility in the marketplace as being a reliable company to deal  
with. We are also developing our own branding techniques that differentiate our product from 
those of our competitors." WSI is a Wool Board Fernmark qualified assured exporter.          

Distributed by Tracey Palmer, Trade New Zealand, Communications, tel (09) 915 4223           

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