The New Zealand Superannuation Fund announced today that it has entered into an agreement with Harvard Management Company (Harvard) to acquire a minority interest in the Kaingaroa forest estate for approximately NZ$300 million. Harvard will retain ownership of the majority of the estate. Property management will continue to be undertaken by Timberlands Limited, based in Rotorua.

Kaingaroa is an estate of approximately 170,000 hectares of cutting rights to plantation forest located in the Central North Island of New Zealand. The bulk of the timber is Radiata Pine, with a small quantity of Douglas Fir. The combination of high rates of growth, flat topography, and close proximity to numerous timber mills plus the Port of Tauranga make Kaingaroa one of the premier timber estates in the world.

"The Fund continues to diversify its mix of assets. As a long term investor, timber is an attractive asset class for the Fund. We are pleased to have found a partner in Harvard who shares a similar outlook," said David May, Chairman of the Board of the Guardians of New Zealand Superannuation.

Timber is one of a number of private market assets owned by the Fund. In 2005 the Fund made a number of timber investments in both New Zealand and the United States. These currently have a combined value of $340 million.

The value of the New Zealand Superannuation Fund as at 31 August 2006 was $10.5 billion.

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For more information please contact:

Paul Dyer, Chief Investment Officer, New Zealand Superannuation Fund

Notes for Editors:

About Harvard Management Company:

Harvard Management Company is the investment manager for Harvard University. The Harvard endowment supports research and educational purposes through annual disbursements to fund scholarships, research and teaching positions and other operational expenses of the University. The endowment is invested in a broadly diversified portfolio of traditional and alternative assets in the US and internationally. At June 30, 2006, the Harvard endowment was valued at US$29.2 billion. Timberland investments currently represent just over 4% of that total.