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Comvita Increases Stake in Derma Sciences Inc
2 August, 2006

Comvita Increases Stake in US-based Derma Sciences Inc
Comvita has reached agreement on amendments to its equity arrangements with US IP Licensing Partner, Derma Sciences Ltd.  

These changes will result in Comvita’s stake in Derma Sciences increasing to just over 10% by February 2007.  They involve commuting the following two tranches of options Comvita held in Derma Sciences, into shares at US$0.75 in February 2007.   

•    US$500,000    of options at US$0.75 due February 2007
•    US$500,000    of options at US$3.00 due 2009  

The structure of the original options was found to be problematic for Derma Sciences within the context of new US audit protocol.  While the changes are being brought about by structural requirements, Comvita is very comfortable that the original reasons for the initial transaction remain attractive and the conversion terms are fair for both companies.

For further background information, refer to releases to NZX dated 15 February 2006 and 19 April 2006. Also refer Comvita Ltd 2005 Annual Report, page 16.

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Comvita wins Supreme Sustainable Business Award

News Release
June 8, 2006

Paengaroa-based natural health products company Comvita is elated at winning the Environment Bay of Plenty Sustainable Business Supreme Award last week.

Chief executive Brett Hewlett says it was a pleasant surprise when the company was announced as the supreme winner against stiff competition from 61 of the region’s most prominent businesses.

Sustainable Business Network Bay of Plenty regional manager Calum Revfem says Comvita is an excellent example of a business that enters the awards to benchmark its efforts against peers to get feedback and make progress.

“Comvita really stood out for the systematic way that it addresses sustainability issues.  It’s obvious that sustainability is a core element of Comvita’s business. It’s completely ingrained in their systems and culture.”

Hewlett says Comvita is totally committed to improving sustainable business practices and continuing to be a leader in the field.

“Sustainability is at the core of what we do but we are always looking for ways to further integrate environmental, social and economic best practice into our business.  The principles behind what is now called the triple bottom line report were championed by our founders, Claude Stratford and Alan Bougen, long before the phrase itself was invented.”

Comvita’s international brand is built heavily on New Zealand’s image as an unspoilt source of natural health products, and the company understands the need to make sustainability issues integral to its business practice.

Hewlett says consumers across the world increasingly judge companies on their social and environmental commitment, and buy products accordingly.

“Investors are following similar principles.  We want to spread the word that good practices in economic, social and environmental sustainability can make a significant positive contribution to commercial, bottom-line results and Comvita’s growth is evidence of this.”

The company is involved with a number of environmental and social initiatives, both in New Zealand and globally.  Hewlett says the influence and conviction of founders Claude Stratford and Alan Bougen remain pivotal in Comvita’s business, in particular their philosophy that business must put something back into the community.

Last year in Tauranga, Comvita donated $15,000 worth of native trees to the Birds, Bees, Kids and Trees programme and a similar initiative is planned for 2006/07.  Sport and school primary school sponsorships, beekeeper scholarships, Otanewainuku Kiwi Trust, Project Green Fleet, The Life Foundation (India), Ben San Leprosy Centre (Vietnam), and Green Globe 21 are some other examples of social and environmental initiatives Comvita supports.
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Comvita on Track
April 28, 2006
It was a message of ‘we’re on track and we’re sticking to a successful plan’ at natural health company Comvita’s Annual General Meeting today.

Comvita chairman Neil Craig pointed to year-to-date 2006 sales 16 percent higher than 2005 and expanded investment in key staff and distribution channels.

“At this stage we expect a reasonably flat six month result relative to 2005 based on foreign exchange contracts in existence at higher rates than today and extra personnel resources put in place over recent months.”

But he says with foreign exchange cover contracts expiring and a lower currency in the second half, as well as recent investment in all of Comvita’s export markets and in US-based Derma Sciences, the 2006 full year result is expected to be ahead of 2005.

Chief executive Brett Hewlett’s presented to shareholders a vision that projected continued growth and increasing control over distribution channels through to 2010.

Hewlett says his vision, targeting $100 million of sales revenue (up from the $31.3 million in 2005), is firmly backed by strong growth in the natural healthcare market, increased investment in research and development by Comvita and further global acquisitions. He saw Comvita having a minimum of 25% of its revenue in non-bee products by that date.

Hewlett says Comvita targets some of the largest and most progressive categories of the natural healthcare industry, particularly ‘wound care’, worth an estimated $1 billion annual in the US alone. Other categories include immune health, digestive health, anti-inflammatory and general ‘well-being and vitality’ products.

“We always need to be innovating and verifying the efficacy of the health value of our products, therefore we will continue to invest heavily in technical resources and research and development.

Also at the AGM, Comvita also adopted an Executive Share Scheme for the leadership team at Comvita which will see 6.75 % of Comvita shares available to them provided key share price performance hurdles into the future are reached. The scheme was unanimously supported by the shareholders present.

Alan Bougen, Bill Bracks and David Cullwick were re-elected to the board.

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