Press Release

DISCOUNT retail success story Betta Stores Ltd has listed on the Newcastle Stock Exchange after restructuring and a share issue valuing the company at $23.4 million. BSL services the needs of 360 retail shop fronts through a national network of franchised Betta and Chandlers electrical goods stores and Sleepy bedding stores employing a total 3500 people. Chairman Patrick Tynan said the NSX was the right choice for BSL and would allow the company to grow while unlocking value for its founding shareholders. "The NSX provides to us the same benefits as being listed on the ASX, but is better suited to BSL's current needs," he said. An extra 46.8 million shares were issued. Betta's shares started trading on the NSX last week at a 5c premium before falling back to their 50c face value. Any takeover premium is unlikely as potential predators have been checked by a constitution which prevents any shareholder buying more than 7.5 per cent. Group retailers also each own 100 retailer shares which carry no dividend entitlements but have a right of veto over special resolutions. BSL reported a June half net profit of $1.26 million and paid a fully franked interim dividend of 2.2c a share after a 39 per cent jump in 2003 full year earnings to $4.2 million. The company has grown its Betta Electrical franchise operations through a number of mergers with other buying groups including Chandlers and Buy-Rite Discounts. BSL recently diversified its franchise operations into the bedding industry through its 50 per cent joint venture interest in Sleepy's the Mattress Specialists which has 32 outlets in all mainland states.