MANAGING DIRECTOR'S - PRESS RELEASE

FIJIAN HOLDINGS GROUP ANNOUNCES RECORD PROFITS

Fijian Holdings Group recorded its best operating result ever for the year ended June 2005. FHL Group's consolidated profit before tax increased by 86% during the year to $16.0 million and net profit after tax expanded by 71% to $12.4 million. The Holdings Company recorded a net profit after tax of $4.8million in 2005 compared to $4.2 million in 2004.

Announcing the result, FHL Group Chairman Mr Lyle Cupit said that the Group's record performance was driven by the growth in revenue, which increased by 20% in 2005 with significant contribution from Fiji Industries Limited and Basic Industries Limited, reflecting the buoyant construction sector. "Merchant Finance & Investment Limited continued its record-breaking performance for the fourth successive year, exceeding most finance-industry benchmarks, and Blue Lagoon Cruises Limited also captured the growth in the tourism sector, with improvements in both revenue and net earnings," he said.

Mr Cupit added that the record financial result achieved for the year was fitting for FHL which celebrated its 20-year anniversary in November 2004. According to Mr Cupit, the strategy for Group Convergence, which included the inauguration of the Group CEO Committee in January 2005 to set the Group budget and to conduct regular business reviews, has made a positive impact. "The implementation of an effective succession program, which also forms part of the Group Convergence strategy, epitomizes the clear direction taken by the Board to actively influence the FHL Group performance. Another important component of this Group strategy was the launching of our new Financial Management Information System on July 1st 2005 to allow the Board to track the Group consolidated results on a monthly basis," he said.

Mr Sitiveni Weleilakeba listed the operating highlights for the year as: highest dividend ever received by the holding company; the commissioning of clinker grinding plant for Fiji Industries Limited; the profit result for Communications Pacific Limited (Compac); another record result posted by Merchant Finance & Investment Company Limited; the launching of Blue Lagoon's new ship; and the appointment of the first local Chief Executive Officer for Basic Industries Limited.

According to Mr Weleilakeba, the focus during the last two years had been creating value internally through a combination of the Group Convergence strategy and structural improvements to our key subsidiaries to enhance their longevity. "The outcome of these strategies is bearing the desired organic growth and has put the Group in a stronger platform to pursue a robust acquisition strategy in future".




OUR PEOPLE

Joji Lagidamudamu a Graduate Trainee in our finance section recently obtained his Approval (license) from CMDA to act as Broker and Dealer representative. Under this approval he may now trade in shares and other securities as well as provide investment advice related to securities to clients. To obtain an approval from CMDA you need to meet the prescribed academic and professional standards requirements and adhere to a strict code of conduct. Well done Joji!

Work Attachment / Overseas Training = Operational Excellence
Mariana Saumadu – BIL – Holcim in Christchurch, NZ
Rove Nayacalevu – BIL – Holcim – Christchurch and Auckland
Peni Puamau – BIL- Holcim- Christchurch, NZ
Jayant Singh- SCI  – Quarry  Mining Conference ; Auckland - NZ
Sereana Qoro – BIL -Cement & Concrete Technology Training - Australia

Offshore Training = Career Building
 FHL and MF&IL have selected Training Programs with the Australian Graduate School of Management in Sydney to send their middle management team to.  We find it necessary to equip our people with the necessary competencies to apply themselves to their jobs.  In this case we are empowering our people with knowledge specific to their roles as new leaders. For our people, it is a Career Building Program which they totally appreciate.

Lepani Makubuna – MF&IL – Executive Training
Tevita Gonelevu – FHL – Management Training
Sowani Tuidrola – FHUT
Surend Prasad – MF&IL
Lalin Chand – MF&IL

To go next week:
Meli Verebalavu – FHL
Ashwin Singh – FHL
Birend Prasad – MF&IL
Rohit Narayan – MF&IL


NEW RECRUITS - Welcome Aboard!
Rowena Fong – Sales & Marketing Officer – FHUT
Vikash Kumar – IT Officer- FHL
Arunesh Chandra – Sales & Trading Officer- FHLS
Mosese Ratakele – Manager Property - FHL

Sports Day:
Many thanks to all the teams for the spirit in which all the competitions were held this year and for the great fun that we all had despite the weather conditions.  DAKUA are gradually adding to the trophy cabinet and expect to continue to do so in 2006. (Training starts next week…)  Many thanks to Ann and her team for the extra effort that was required for the successful organization of the week’s events and the Saturday program.  It is appreciated.  Especially pleased on how you managed to get the Springboks to open up that gap for Mealamu’s try on Saturday night.  It was masterful and timely.

From me:
Enjoyed the competitive spirit of my fellow team leaders and wish you all the best in 2006.  Not sorry to have missed the 50m “dash”…some things are just fond memories now. Thanks for the kind words; it was fun to be a part of.
Ken Cowie - Team Leader – DAKUA

YAKA
I’m indeed very grateful for the effort and the excellent work of the organizing committee in putting together and executing an excellent FHL Group Sports Day for 2005, despite poor weather conditions.  Your planning and organizing ability is a true testimony of our slogan – Success through Team Building.  Ann and the organizing team – VINAKA VAKALEVU!!
Sitiveni Weleilakeba- Team Leader - YAKA

Yaka does not have any complaints at all, we were happy as host and that everybody enjoyed themselves and we were satisfied that we had fed you dinner and drinks in style.  We even had words of praise from Sports Council for polishing their court so well they could see their image.  So the other teams should thank Yaka for being a good and fair host; and also for allowing everyone to make a contribution to Sports in this country by polishing the Gymnasium floor.

Yaka! Yaka! Yaka!
Josese Daveta- Assistant Team Leader - YAKA


YASI
Post-mortem of event from YASI – EXCELLENT.
Thanks to the organizing committee and the “host”.  Rove and Seva should be banned from the aftermath function next year – too much dirty dancing!!
Best to all!
Jaoji Koroi-Team Leader – YASI

Thank you for the sportsmanship and fellowship. It was a pleasing and satisfying event. MD thank you for the initiative in terms of making this an annual affair. The dampness of the weather was all forgotten in the spirit of togetherness.
Loloma to all till next year. Ken all the best, we will remember you in the games ahead… your leadership in your teams will be missed. To the True Blues…. Vinaka, it was a spirited effort, everyone’s the winner.
Pramesh Sharma –Assistant Team leader

VESI
“I heard that everyone enjoyed the Sports Day and Dinner. Thank you and congratulations for a job well done!”
Sereana Qoro – Team Leader (Mrs. Qoro was away overseas on Duty travel during the week).
It gets better every year. The dinner function was “ace”!
Mosese Volavola - Assistant Team leader

For the FUTURE!
We would love to have Blue Lagoon staff participate so we will look at other options next year which may include traveling to the Burning West! So for the various subsidiary Sports & Social Clubs – save funds for your staff accommodation.
Let’s endeavor to make it better by the year.
Ann Steele - Chairperson