Offer for Tower Ltd NZ

Guinness Peat Group PLC
02 May 2008




                            Guinness Peat Group plc

            Partial Offer for shares in Tower Limited in New Zealand


The following is the text of an announcement made today by Guinness Peat Group
plc ("GPG") on the New Zealand Stock Exchange ("NZSX") in respect of a partial
cash offer at NZ$2.30 (£0.90) per share to purchase up to 29,342,450 (15.30%) of
the issued ordinary shares of Tower Limited ("Tower"), a New Zealand company
focused on the risk insurance and wealth management market in New Zealand (the "
Offer").  Before the Offer GPG held 19.7% of Tower's issued shares.  On the
successful conclusion of this Offer GPG would therefore hold 35% of the issued
share capital of Tower.

The gross assets of Tower at 30 September 2007 were NZ$1,546 million (£606
million) and the profits from continuing operations before taxation for that
year were NZ$55 million (£22 million).




J R Russell
Company Secretary
Guinness Peat Group plc
Tel: [phone]



2 May 2008


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                          "GPG Partial Takeover Offer


Guinness Peat Group plc ("GPG") has advised that a wholly-owned subsidiary, GPG
Twenty One Limited, intends to make a partial offer under the New Zealand
Takeovers Code to purchase 15.30% of the ordinary shares in TOWER Limited ("
TOWER") at a price of $2.30 per share.  GPG currently controls, through a
wholly-owned subsidiary, 19.70% of TOWER.

The offer will provide TOWER shareholders an opportunity to sell their shares at
a price that is a 11.1% premium to the last TOWER closing price and a 16.3%
premium to the 1 month volume weighted average price.

GPG Executive Director Tony Gibbs said "from GPG's perspective, as a result of
the spin-offs of Tower Australia Group Limited and Australian Wealth Management
Limited, GPG's investment in TOWER had reduced considerably in size. The offer
would give GPG the ability to invest more money in TOWER and increase the value
of its investment back up to a more optimal investment size more consistent with
other investments in its portfolio."

Mr Gibbs also said "he expected the offer to be extremely well supported by both
large and small shareholders. In particular small shareholders, many of whom
hold uneconomic parcels, will have the opportunity to sell their shares at a
premium price without incurring disproportionately large brokerage costs to
dispose of their shares. The reduction of the number of small size shareholders
would in turn assist TOWER to reduce the administrative costs of maintaining and
communicating with such a large number of shareholders."

GPG has no current plans to appoint any further TOWER directors if it achieves
its shareholding of 35%.

GPG is confident that it will receive the market support it requires for this
offer to be successful.  In order for the offer to be successful GPG requires:

  • acceptances of 15.3% or 29,342,450 TOWER shares; and
  • approval by TOWER shareholders.


Goldman Sachs JBWere (NZ) Limited is acting as broker to GPG in relation to this
offer.


For further information contact Tony Gibbs on [phone].

2 May 2008"


                                 ENDS



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