ACB, one of the largest owners and operators of lodge style backpacker accommodation in New Zealand, has been acquired by leading Australasian private equity fund, Ironbridge in conjunction with its management.

ACB currently has over 1,200 beds across four complexes situated in downtown Auckland, Queenstown, Paihia and Rotorua. Each complex also provides travel agencies, internet cafes and has bars which are amongst the busiest in the towns in which they are located.

ACB will continue to pursue an aggressive roll out of its successful format across New Zealand and, ultimately Australia and the South Pacific to cater for the anticipated strong growth in backpacker arrivals in the region.

Campbell Shepherd, ACB's Managing Director, said:"I am delighted with this result as it means that the existing management team will continue to run the business and will be able to capitalise on the significant expansion opportunities available to ACB."

"Our innovative offering of large, good value, modern and clean backpacker accommodation complexes, coupled with busy bars, travel agencies and other essentials that act as travellers' meeting places, have proved attractive to backpackers who are arriving in increasing numbers to sample the New Zealand experience."

Kerry McIntosh, New Zealand Operational Partner for Ironbridge said: "New Zealand is one of the pre eminent global backpacker destinations as demonstrated by Lonely Planet writers having voted it its top destination two years running.

"We expect New Zealand's unique qualities to drive continued growth in backpacker arrivals, many of whom are seeking the type of value and experiences offered by ACB"

Mr McIntosh stressed that "a prerequisite to Ironbridge investing was a quality management team with a real stake in the business. We think very highly of Campbell and his team and look forward to working together to grow the business".

Notes to editors:

Ironbridge is a leading provider of private equity for growth businesses in the New Zealand and Australia. Ironbridge is focused on investments in medium to large sized management buyout and expansion capital transactions, targeting equity commitments investments of NZ$20m to NZ$100m. The Ironbridge 2003/2004 Fund has commitments of A$285m, which is expected to rise to A$400m before the fund is closed to investors later this year.

ACB is the second investment for this Ironbridge fund. In October 2003 Ironbridge co-led the management buy out of Affinity Health, the largest operator of private hospitals in Australia, from Mayne Group for A$871m.

Contacts:

Campbell Shepherd
ACB
09 357 3994

Neil Broekhuizen
Ironbridge
00 61 408 663 451

Kerry McIntosh
021 338 325