MAYNE GROUP LIMITED (ASX.MAY)

we understand that on or about this date the company demerged Mayne Pharma Limited by way of a 1 for 1 distribution - the Demerged Entity represented 44.217% of the market value of the group as a whole immediately after the demerger

Mayne Group Limited (Mayne) undertook a number of transactions to separate the ownership of the international pharmaceutical business (to Mayne Pharma and its subsidiaries) - Mayne (now Symbion Health Limited) retained the domestic healthcare businesses - as a result of the demerger, Mayne shareholders held shares in both Symbion Health and Mayne Pharma - the demerger was undertaken via a Scheme of Arrangement whereby Mayne undertook a capital reduction under which a total of approximately $1.56 billion of contributed capital was returned to Mayne shareholders (capital reduction amount) - this amounted to $2.49 per ordinary issued Mayne share - the capital reduction amount was applied on behalf of Mayne shareholders for the subscription of approximately 636 million new shares in Mayne Pharma - Mayne shareholders subscribed for one new Mayne Pharma share for every one Mayne share they held before the demerger and Mayne Pharma used the funds received on the issue of the new shares to repay outstanding loans to Mayne

name changed to Symbion Health Limited

in March 2004, Mayne conducted an off-market share buy-back - shareholders who took part in the buy-back received $3.55 per share - according to the Australian Taxation Office the date the shares were sold was 22 March 2004 - if the capital proceeds of $3.55 per share were more than the cost base of the share, the difference was a capital gain to the shareholder in 2003-04 - if $3.55 was less than the share's reduced cost base, the difference was a capital loss

name changed from Mayne Nickless Limited