TRANZ RAIL HOLDINGS LIMITED (New Zealand Stock Exchange: TRH) (Nasdaq: TNZRY) Quarter Ended 31 March 1997 1998 (unaudited) (NZ GAAP) NEW ZEALAND DOLLARS (in millions except per share data) Total revenue $150.3 $152.3 Total operating costs $119.2 $125.7 Operating profit $31.1 $26.6 Operating ratio 79.3% 82.5% Net profit $20.6 $15.4 Average ordinary shares outstanding (fully diluted) (in thousands) 127,299 128,086 Earnings per ordinary share (fully diluted) $0.16 $0.12 Quarter Ended 31 March 1997(b) 1998(b) (unaudited) (NZ GAAP) UNITED STATES DOLLARS (in millions except per ADS data) Total revenue $104.7 $88.1 Total operating costs $83.0 $72.7 Operating profit $21.7 $15.4 Operating ratio 79.3% 82.5% Net profit $14.4 $8.9 Average American Depositary Share equivalents outstanding (fully diluted) (in thousands)(a) 42,433 42,695 Earnings per American Depositary Share equivalent (fully diluted)(a) $0.34 $0.21 (a) One American Depositary Share (ADS) represents three ordinary shares. (b) New Zealand dollar amounts have been translated into US dollars for convenience at the average daily rate of NZ$1.00 = US$0.6967 and NZ$1.00 = US$0.5780 for the quarters ended 31 March 1997 and 31 March 1998, respectively, based on the noon buying rate for New Zealand dollars as reported by the Federal Reserve Bank of New York. TRANZ RAIL HOLDINGS LIMITED (New Zealand Stock Exchange: TRH) (Nasdaq: TNZRY) Nine months Ended 31 March 1997 1998 (unaudited) (NZ GAAP) NEW ZEALAND DOLLARS (in millions except per share data) Total revenue $435.1 $435.2 Total operating costs $357.4 $372.6 Operating profit $77.7 $62.6 Operating ratio 82.2% 85.6% Net profit $44.7 $36.9 Average ordinary shares outstanding (fully diluted) (in thousands) 127,068 127,767 Earnings per ordinary share (fully diluted) $0.35 $0.29 Nine months Ended 31 March 1997(b) 1998(b) (unaudited) (NZ GAAP) UNITED STATES DOLLARS (in millions except per ADS data) Total revenue $303.6 $267.4 Total operating costs $249.4 $228.9 Operating profit $54.2 $38.5 Operating ratio 82.2% 85.6% Net profit $31.2 $22.7 Average American Depositary Share equivalents outstanding (fully diluted) (in thousands)(a) 42,356 42,589 Earnings per American Depositary Share equivalent (fully diluted)(a) $0.74 $0.53 (a) One American Depositary Share (ADS) represents three ordinary shares. (b) New Zealand dollar amounts have been translated into US dollars for convenience at the average daily rate of NZ$1.00 = US$0.6977 and NZ$1.00 = US$0.6143 for the nine months ended 31 March 1997 and 31 March 1998, respectively, based on the noon buying rate for New Zealand dollars as reported by the Federal Reserve Bank of New York. Tranz Rail Holdings Limited Performance Highlights Tranz Rail's net profit for the quarter to 31 March 1998 was NZ$15.4 million on revenue of NZ$152.3 million. Net profit decreased NZ$5.2 million (25%) on the third quarter of the 1997 financial year. Revenue increased NZ$2.0 million (1%) on the third quarter of the 1997 financial year. Key comparisons between the quarters, last year in parenthesis: -- Operating profit NZ$26.6 million (NZ$31.1 million) -- Operating ratio 82.5% (79.3%) -- Rail passenger revenue up 2% -- Tranz Link (freight) revenue up 1% -- Ferry passenger and vehicle revenue down 2% -- Revenue tonnes (000s) 2,926 (2,892) The Company has reported a reduced first quarter performance. Net profit for the quarter was $7.3 million which is down on the first quarter in the previous financial year. Tranz Rail's net profit for the nine months to 31 March 1998 was NZ$36.9 million on revenue of NZ$435.2 million. Net profit decreased NZ$7.8 million (17%) on the first nine months of the 1997 financial year. Revenue increased NZ$0.1 million on the first nine months of the 1997 financial year. Key comparisons between the nine months, last year in parenthesis: -- Operating profit NZ$62.6 million (NZ$77.7 million) -- Operating ratio 85.6% (82.2%) -- Rail passenger revenue up 6% -- Tranz Link (freight) revenue down 2% -- Ferry passenger and vehicle revenue down 1% -- Revenue tonnes (000s) 8,802 (8,529) SOURCE Tranz Rail Holdings Limited -0- 04/28/98 /CONTACT: Mr. Ronald G. Russ, Executive Manager and Chief Financial Officer of Tranz Rail Holdings, in NZ, 04-498-2099, or international, 011-644-498-2099, or fax, 011-644-498-2014/ (TRH TNZRY)