Statement From Cubbie Group

VOLUNTARY ADMINISTRATORS TO BE APPOINTED TO CUBBIE STATION

The Board of the Cubbie Group of Companies has confirmed today that Voluntary Administrators will be appointed to the group, effective 5pm (Qld time), Friday 30 October. The decision to appoint corporate recovery specialists McGrathNicol was made by the Board in anticipation of the expiry of the companies' funding facilities on 30 October. "We have made this decision to allow sufficient time for a smooth and orderly transition of control to the voluntary administrators," Chairman Keith De Lacy said today.

"We are confident this approach will minimise disruption to Cubbie's operations. We have discussed and have in-principle agreements with the voluntary administrators such that the business can continue to trade and we will work with them during the administration period. This will allow the value in the assets to be realised in an orderly way, in the interests of all our stakeholders."

Mr De Lacy said that it was important that the Cubbie Group continued as a going concern, in the interests of employees, and the communities of Dirranbandi and St George in general.

"In the end it was drought that beat us." "We have only had one good season in the last five."

"We continue to work closely and positively with our financiers in relation to this appointment. They have been very supportive throughout this process," Mr De Lacy said.

Cubbie Group is headquartered in Dirranbandi and holds around 93,000 hectares of land on several properties in South West Queensland.

The group produces a range of irrigated crops, including cotton, wheat, sorghum, sunflowers, barley, chickpeas and corn.

CUBBIE GROUP ST GEORGE PTY LTD
PO Box 608
ST GEORGE QLD 4487
Ph: (07) 4625 1100
Fax: (07) 4625 1099
[email protected]

CUBBIE GROUP DIRRANBANDI
PO Box 7
DIRRANBANDI QLD 4486
Ph: (07) 4625 8366
Fax: (07) 4625 8399
[email protected]

SOURCE: Cubbie Group Ltd