Proposed Cancellation of Orica 5 Percent Preference Shares

30 October, 2007

Orica Limited ('Orica') announced today its proposal to cancel the 2,000,000 5% cumulative non-redeemable preference shares ('5% Preference Shares') on issue for a cash payment of A$4.75 for each cancelled 5% Preference Share. 

The cancellation will be implemented by way of a selective capital reduction and is subject to approval by the 5% Preference Shareholders at a separate class meeting to be held on 21 December 2007 and, subsequently, by Orica’s Ordinary and Step Up Preference shareholders at the Annual General Meeting on the same day.

If approved, the capital reduction is expected to occur in January 2008.

Orica has received commitments from more than 75% of the 5% Preference Share holders to support the proposed cancellation.

The proposed cancellation does not relate to the Orica Step Up Preference Securities issued in 2006.

Contacts:  

Stuart Hutton, Investor Relations Manager, Ph: +61 3 9665 7844 Mob: 0411 790 164

Lisa Walters, Communications Manager, Ph: +61 3 9665 7538 Mob: 0421 585 750