Qantas has announced the formal termination of its Strategic
Alliance Agreement and Tasman Networks Agreement with Air New Zealand.This follows the
negative draft determination of the Tasman Networks Agreement by the Australian Competition
and Consumer Commission in November 2006.
In connection with the termination of the Agreements, all of the Convertible Notes issued by Air
New Zealand to Qantas in 2002 will be converted into 44,152,695 new ordinary shares in the
airline. This is equivalent to approximately 4.2 per cent of Air New Zealand’s ordinary shares on
issue.

The conversion will take place on 14 February 2007.
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