To Whom It May Concern: 20/10/2009

NEW ENGLAND WOOL - REBATE SCHEME FOR NON MULESED WOOL PURCHASES

The Australian Wool Industry has agreed to phase out the practice of mulesing by 31^st December, 2010.

The Shareholders of New England Wool are particularly aware and concerned that the producers of wool most suitable to New England Wool would be greatly affected by the cessation of mulesing due to the following facts.

o High percentage of suitable wool was produced in areas where flystrike was prevalent

o The saxon or traditional superfine sheep was likely to have more wrinkle around the breach area of the animal, making them more susceptible to flystrike.

o Genetic changes would be slow and may affect/change the quality of wool produced from such sheep.

· The Shareholders of New England Wool Pty Ltd have resolved that the maintenance of wool quality is paramount and wool growers are to be assured that New England Wool would maintain a policy of purchasing the highest quality wool available in the world. Professional wool growers need encouragement and support to continue to produce this important raw material. Accordingly, the following policy will apply re wool purchased from non-mulesed sheep:

· New England Wool Pty Ltd initiated a declaration system for wool produced from non-mulesed sheep in 2005/06. This system involves an auditing regime using registered vets and/or sheep specialists. New England Wool will continue to ask wool growers to declare (on official New England Wool Declaration forms) wool from non-mulesed sheep before the sale of such wool. New England Wool will also be interested to understand if and when wool growers cease to perform mulesing on their respective properties.

· New England Wool, on behalf of its Italian shareholders, will now initiate a rebate system for purchases of bales of wool from non-mulesed sheep. For all non-mulesed bales purchased by New England Wool from Australia and New Zealand, an amount of A$100 (or NZ$ equivalent) per bale will be paid directly back to the producer of these bales. This rebate system will take effect beginning 1^st July 2008 and will continue for the duration of the 2008/9 and 2009/10 seasons and will be reassessed for subsequent seasons.

· It is intended that these funds would be used by wool growers to cover costs of on-farm practices to prevent or control flystrike in sheep that are no longer mulesed. ie extra crutching, labour costs and other alternatives/strategies as they become available. New England Wool respects the right of wool growers to choose the appropriate time to take this difficult step between now and 2010. New England Wool also supports the use of pain relief products in conjunction with mulesing in the interim.

· The rebate will be limited to purchases made by New England Wool for and on behalf of Italian shareholders (Reda and Vitale Barberis Canonico) only.