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Snapper Release

26 Jun 2012

Snapper is a Wellington based technology start-up backed by Infratil. It employs 25 people and works in partnership with the world’s leading smart-card provider - Korea Smart Card Company to deliver information and payment solutions. Its cards are used by over 380,000 customers in New Zealand and are accepted on 1,014 buses in Auckland and Wellington (where it has successfully operated for more than 3 years). Snapper is also available on over 3,000 taxis and 500 retailers and is used by businesses, schools and tertiary education institutions for ID and access. Snapper has strong partner relationships with a number of payments and technology companies across New Zealand, including the successful “Touch 2 Pay” mobile service launched with 2 Degrees in May this year, the first of its kind in New Zealand.

NZ Bus and Snapper are committed to working with Auckland Transport to deliver integrated ticketing in Auckland later this year.

The Auckland Integrated Fare System (AIFS) project is one of the largest IT initiatives in Australasia. The key parties involved include NZTA whose role is to set the national standards, Auckland Transport as the system integrator, and French multinational Thales as the prime contractor. Over $100m of NZTA and regional funding has been set aside to deliver this project. As the system integrator, Auckland Transport is responsible for overall design and project management, as well as the implementation timetable.

In the lead-in to AIFS delivery, Snapper and NZ Bus entered into a Participation Agreement with Auckland Transport to provide an interim electronic ticketing system that would ultimately interoperate with the AIFS-based bus, rail and ferry operators. Snapper’s work plan, developed together with Auckland Transport, is designed to deliver integrated ticketing for NZ Bus passengers by November 30, 2012 and success is dependent on all parties working together. Both the national standard and Auckland Transport’s implementation plan are still subject to change.

The current “HOP” system in Auckland uses Snapper technology and NZ Bus operates approximately 50% of all public transport journeys in Auckland. Working with the other bus companies who service the remainder is Parkeon as an additional supplier - it is unclear when Parkeon will achieve the required equipment and system standards.

On 18th June 2012, Snapper received a notice from Auckland Transport, alleging various breaches of the participation agreement and a claim for damages. The basis of these claims has not been clarified and the notice incorporates a number of significant errors and inaccuracies. Infratil and Snapper strongly refute the allegations made and we will make our response to the detailed claims known as appropriate.

Snapper and its parent Infratil have made significant investments in developing enhanced capability across our public transport business. As of today Snapper has the only fully functioning electronic ticketing capability in New Zealand and has received no funding from Auckland Transport or NZTA.

Rhoda Phillippo

Chair, Snapper Services Limited

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