TRANZ RAIL HOLDINGS LIMITED (NZSE: TRH) (Nasdaq: TNZRY) Quarter Ended 30 June 1997 1998 (unaudited) (NZ GAAP) NEW ZEALAND DOLLARS (in millions except per share data) Total revenue $144.3 $142.0 Total operating costs $135.9 $122.8 Operating profit $8.4 $19.2 Operating ratio 94.2% 86.5% Net profit $15.9 $11.3 Average ordinary shares outstanding (fully diluted) (in thousands)127,599 125,811 Earnings per ordinary share (fully diluted) $0.12 $0.09 Quarter Ended 30 June 1997 (b) 1998 (b) (unaudited) (NZ GAAP) UNITED STATES DOLLARS (in millions except per ADS data) Total revenue $99.6 $75.9 Total operating costs $93.8 $65.6 Operating profit $5.8 $10.3 Operating ratio 94.2% 86.5% Net profit $11.0 $6.0 Average American Depositary Share equivalents outstanding (fully diluted) (in thousands) (a) 42,533 41,937 Earnings per American Depositary Share equivalent (fully diluted) (a) $0.26 $0.14 (US GAAP)(c) Net profit $3.1 $6.0 Earnings per American Depositary Share equivalent (fully diluted) (a) $0.07 $0.14 (a) One American Depositary Share (ADS) represents three ordinary shares. New Zealand dollar amounts have been translated into US dollars for convenience at the average daily rate of NZ$1.00 = US$0.6901 and NZ$1.00 = US$0.5347 for the quarters ended June 30 1997 and June 30 1998 respectively, based on the noon buying rate for New Zealand dollars as reported by the Federal Reserve Bank of New York. US GAAP results do not reflect the recognition in the prior period of the deferred income tax benefits for timing differences that for NZ GAAP purposes had not been previously recognised while awaiting achievement of virtual certainty. TRANZ RAIL HOLDINGS LIMITED (NZSE: TRH) (Nasdaq: TNZRY) Twelve Months Ended 30 June 1997 1998 (unaudited) (NZ GAAP) NEW ZEALAND DOLLARS (in millions except per share data) Total revenue $579.4 $577.2 Total operating costs $493.3 $495.4 Operating profit $86.1 $81.8 Operating ratio 85.1% 85.8% Net profit $60.6 $48.2 Average ordinary shares outstanding (fully diluted) (in thousands) 127,233 127,274 Earnings per ordinary share (fully diluted) $0.48 $0.38 Twelve Months Ended 30 June 1997 (b) 1998 (b) (unaudited) (NZ GAAP) UNITED STATES DOLLARS (in millions except per ADS data) Total revenue $403.1 $342.9 Total operating costs $343.2 $294.3 Operating profit $59.9 $48.6 Operating ratio 85.1% 85.8% Net profit $42.2 $28.6 Average American Depositary Share equivalents outstanding (fully diluted) (in thousands) (a) 42,411 42,425 Earnings per American Depositary Share equivalent (fully diluted) (a) $0.99 $0.68 (US GAAP)(c) Net profit $34.2 $28.6 Earnings per American Depositary Share equivalent (fully diluted) (a) $0.81 $0.68 (a) One American Depositary Share (ADS) represents three ordinary shares. New Zealand dollar amounts have been translated into US dollars for convenience at the average daily rate of NZ$1.00 = US$0.6957 and NZ$1.00 = US$0.5940 for the twelve months ended 30 June 1997 and 30 June 1998, respectively, based on the noon buying rate for New Zealand dollars as reported by the Federal Reserve Bank of New York. US GAAP results do not reflect the recognition in the prior period of the deferred income tax benefits for timing differences that for NZ GAAP purposes had not been previously recognised while awaiting achievement of virtual certainty. TRANZ RAIL HOLDINGS LIMITED PERFORMANCE HIGHLIGHTS Tranz Rail's net profit for the year to 30 June 1998 was $48.2 million. This is a decrease of $12.4 million (20%) on the 1997 financial year. Operating profit for the year to 30 June 1998 was $81.8 million which was $4.3 million below the figure for 1997. Net profit for the quarter was $11.3 million which is a decrease of $4.6 million (29%) on the fourth quarter in the previous financial year. Key comparisons between the years, last year in parenthesis: Net profit NZ$48.2 million (NZ$60.6 million) Operating profit NZ$81.8 million (NZ$86.1 million) Operating ratio 85.8% (85.1%) Rail passenger revenue up 6% Ferry passenger and vehicle revenue up 3% Tranz Link (freight) revenue down 2% Revenue tonnes (000s) 11,706 (11,525) Key comparisons between the quarters, last year in parenthesis: Net profit NZ$11.3 million (NZ$15.9 million) Operating profit NZ$19.2 million (NZ$8.4 million) Operating ratio 86.5% (94.2%) Ferry passenger and vehicle revenue up 18% Rail passenger revenue up 7% Tranz Link (freight) revenue down 3% Revenue tonnes (000s) 2,904 (2,996) SOURCE Tranz Rail Holdings Limited CONTACT: Ronald G Russ, Executive Manager and Chief Financial Officer of Tranz Rail, +64-4-498-2099, or Fax, +64-4-498-2014