Cavalier Corporation Finalises Sale of Wool Scour

MARKET RELEASE
28 September 2018
Cavalier Corporation finalises sale of wool scouring business

Further to Cavalier Corporation Limited's (NZX: CAV) announcement on 27 September 2018, Cavalier
advises that it has now entered into agreements to sell its 27.5% shareholding in its wool scouring
business, Cavalier Wool Holdings Limited (CWH) and the property held by 50% owned CWS Assets
Limited which has been leased to CWH, for approximately $13.5 million, to Woolscour Holdings
Limited.

The sale of the shares in CWH, which were held by Cavalier Bremworth Limited, Cavalier's wholly-
owned subsidiary, settled earlier today. Settlement of the land sale is expected to take place later
today or on Monday.

At the same time, Cavalier has also entered into a long-term scouring agreement with CWH to
secure its ongoing access to wool scouring services on arm’s length commercial terms.

Cavalier Chairman, Alan Clarke, commented: “As previously advised, the sale proceeds will
significantly reduce our debt and strengthen our balance sheet, enabling us to explore investments
in our core business of manufacturing and marketing high end carpet solutions.

“Cavalier has redefined its focus – to be a marketer of carpets, not simply a manufacturer – and the
Board is confident the company is on track to realise long-term sustainable growth, with improving
margins and quality earnings.”

A waiver to Listing Rule 9.2.1 was sought and granted by the NZX in relation to this transaction.

ENDS
For further information please contact:
Alan Clarke
Chairman
021 368 818
alan.clarke@outlook.co.nz