TO ALL VALUED SOFRANA CUSTOMERS:

Since our last review just two months ago, global fuel prices have risen by an unprecedented USD26 per barrel. This is turn results in a +20% increase in our fuel costs, even after taking into account the easing of oil prices towards the later part of last week.

Because of this significant increase in our operating costs, we are left with no viable option but to adjust our BAF to reflect this considerable cost change.

We have completed a review of our southbound BAF from Papua New Guinea & Solomon Islandâ??s to New Zealand, Australia and New Caledonia and wish to advise that effective from mid August 2008, the BAF will be increasing by+12% from 42.5% to:

BAF +54.5%

The new baf will come into affect from the following vessel/voyages:-

Sofrana Magellan V122 Loading Honiara 13 August 2008

Sofrana Surville V144 Loading Papua New Guinea 24 â?? 27 August 2008

Due to the present price volatility of fuel, we are no longer in a position to provide a full 30 days notice and have reduced the notice period to providing a minimum of 14 days notice.

Should you have any queries or require additional information please contact your local Sofrana agent.

Yours faithfully

Sofrana Unilines NZ Ltd