12th April 2013.

Following our announcement of recent problems with the commissioning of the distribution centre and its impact on the company, Directors have decided to update shareholders more often than usual so that they are better informed as the issues are addressed.

PPGL is able to report good progress and improved performance working with the company's distribution service provider, in conjunction with independent consultants, to improve the operation of the outsourced distribution centre. Autumn stock has moved through the system and winter stock is moving smoothly into stores in a timely manner.

"We are all committed to making a success of the partnership and look forward to locking these initial improvements down into a consistent operation.” says Mr Richard Punter, Chairman of Postie Plus Group.

FOR FURTHER INFORMATION PLEASE CONTACT:
Mr Richard Punter
Chairman
Postie Plus Group
Mobile (021) 943611

Postie Plus Group Ltd 2013 First Half sales release: 6th August 2012 – 3rd February 2013.

PPGL has posted continuing operations sales of $43.288m compared with the same period last year of $43.931m showing a decrease of 1.5%. The overall Group gross margin % decreased for the period. Expenses continue to be managed well with overall expenses in line with last year. The preliminary first half result will be released on 28th March with the expectation of a continuing operations net loss before tax of $2.557m compared to $0.924m last year.

The results to date have been impacted by the extent of the difficulties encountered by the company's logistics and distribution service provider in commissioning the new service. It is now apparent that recovering from the comissioning difficulties previously notified has been significantly slower than previously expected. PPGL is in discussions with the service provider, but it is now expected that due to these difficulties the company will report a substantial loss for FY2013. The loss of margin caused by the Distribution Centre commissioning will also result in a breach of PPGL’s banking covenants, and the company has commenced discussions with its bank.

PPGL is working intensively with the service provider to accelerate distribution performance and has also engaged independent expertise to assist in this process.

For Further Information Please Contact:

Mr. Richard Punter
Chairman Postie Plus Group Ltd
Mobile (021) 943611

Postie Plus Group Limited (‘PPGL’) confirms that exceptional circumstances that disrupted distribution of apparel to its national store network have precipitated a loss for the six months ended 3 February 2013.

A number of new stores in the Auckland region are planned by Postie Group Ltd as the nationwide apparel retailer focuses on the significant growth in Auckland's population in the next 10-20 years.

Shareholder attending today's annual meeting of the company in Christchurch were provided with an update on the group's ongoing development of the Postie chain that now comprises the core trading assets of the NZX-listed retailer.

ANNUAL MEETING CHRISTCHURCH 7 DECEMBER 2012

Good morning and thank you Richard

I wish to take you back through the past year before talking you through the current year

Last year was a year of repositioning for PPGL, particularly for Postie, with apparel retailing continuing to be a difficult sector in which to attain growth, which is reflected in data provided by BNZ's Marketview, showing specialty stores having their third consecutive year with little or no growth.