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Investor Newsletter #4 - December 2007 

December 2007

Welcome to our twelfth General Finance quarterly newsletter. We appreciate your support. The purpose of this newsletter is to keep you informed about the company and various financial matters that may interest you. This newsletter, like our last one, will be more technical and we will be discussing various factors that make us able to handle the current economic issues facing the finance company sector.

Our Six Month Result to 30 September 2007

General Finance Limited had a good six monthly result to 30 September 2007. Our profit before tax was up 34% to $499,645 from $373,778 in the same six monthly period last year. Since 31 March 2007, total assets have increased modestly by 4% to $10.54 million from $10.16 million, and shareholders funds have increased by 12% to $3.11 million from $2.78 million. Our loan book remains strong despite other finance companies having issues. Our investors should note that all our loans are secured by registered first or second mortgages over residential properties. We have absolutely no exposure to the second hand car market, the commercial market or to large scale property developments. All of our mortgage exposures are within New Zealand. If any investors would like a full copy of our six monthly accounts please feel free to contact us or you can download them from our website at in the Prospectus Section shortly.

Corporate Ownership

When looking at investing with a finance company, knowing who the directors and shareholders are is of vital importance. General Finance Limited has one corporate shareholder, Cairns Lockie Limited. This company is a residential mortgage lending company operating in a similar market to General Finance Limited. The difference between the two companies is that General Finance focuses on some short term bridging and second mortgages. The Cairns Lockie group is larger than General Finance Limited with around $375 million in residential mortgages under management. The directors of General Finance Limited are also directors of Cairns Lockie Limited. Both directors are well experienced in the residential mortgage sectors, and full details of their background and qualifications can be found in our prospectus and on our website at

Finance Company Sector 

Over the past 12 months there has been considerable speculation on finance companies in the press. Many of these comments are being based on rumour and from people who are not suitably qualified to make them. In some cases they are confusing the investing public. If you have any questions about your investment with General Finance Limited, please do not hesitate to contact me, William Cairns at General Finance Limited on 09 526 7801. We are happy to answer your specific questions.

December Payment Date

Our next quarterly interest payment will be made on Monday evening 31 December 2007. Direct credits will go in that evening, with cheques (if applicable) and paperwork being forwarded during the following week. This is due to the public holidays.

If you have any questions about your investment please do not hesitate to contact me on 09 526 7801 or by email to  Our website is at .

If you want to invest more funds or obtain statements and the like, our securities registrar's number is 0800 500 602.

Your continued support is appreciated.

We take this opportunity to wish you a very Merry Christmas and all the best for the New Year.