27 February 2002 ASX/Media Release

API and Sigma in Merger Discussions- Update

MARKET UPDATE

Sigma and API today advised that talks between the two companies about a possible merger are progressing to plan and active discussions have begun with the key stakeholders of both companies.

The companies have been in constructive discussion with the ACCC, on a confidential basis, since August 2001. During that time, the companies have provided extensive information to the Commission.

Sigma and API believe that they can address any competition concerns raised by the ACCC and accordingly determined that they had an appropriate basis to progress their potential merger discussions, leading to the market announcement on Friday 15/2/02.

The companies are closely monitoring the views of their shareholders, customers, suppliers and industry partners, and said they were committed to ensuring that any merger would provide meaningful long term benefits. Early feedback has been encouraging.

Sigma and API will keep shareholders informed on a timely basis of further progress in negotiations. Should these discussions culminate in an
agreement, then this will be advised to the market immediately but it is not envisaged that this would occur before the middle of March