28.01.2010 – 08:02

QVT Financial LP

QVT Supports Rescue Plan of TZ Limited

Sydney (ots/PRNewswire)

QVT Fund LP and Quintessence Fund
L.P. (together, "QVT"), announced their support for the rescue plan
proposed by the directors of TZ Limited ("TZ" or the "company"). If
passed by shareholders, this rescue plan will allow QVT to convert
approximately AUD$28.6 million of debt into TZ shares.

QVT believes the rescue plan is in the best interests of all
shareholders and will significantly benefit TZ and all shareholders,
as, rather than enforcing its claim for repayment of AUD$28.6
million, QVT is acquiring shares at a price that is above TZ's last
trading price (AUD$0.96) and agreeing to place shares in escrow for a
twelve month period.

QVT is a long term investor in TZ and believes that its interests
are aligned with those of other shareholders. QVT believes in the
company's unique technology, product development opportunities and
its dedicated staff, who have remained committed during this trying
period.

In December 2007, QVT subscribed for AUD$24 million worth of
convertible notes. TZ failed to pay QVT the annual interest payments
on these notes in both 2008 and 2009.

Since June 2009, QVT has worked with the current board of the
company on a restructure that would repay QVT without destroying
value for shareholders. In furtherance of this effort, QVT invested
an additional AUD$2 million in the company to sustain TZ's operations
and agreed to a moratorium on the outstanding debt owed to it.

As set out in TZ's Notice of Annual General Meeting and other
materials dispatched to shareholders and released on ASX on 27
January 2010 ("TZ AGM Documents"), the company's Independent Expert,
Lonergan Edwards & Associates Limited, has strongly recommended that
TZ shareholders approve the rescue plan (in the absence of a superior
proposal) because:

- If the rescue plan is not implemented (and in the absence of a superior
      proposal, the likelihood of which they consider remote), TZ
      shareholders are highly unlikely to receive any value for their TZ
      shares because TZ is likely to be placed in administration;
    - The rescue plan implicitly values TZ's existing shares (in total) at
      AUD$48.6 million; and
    - TZ shareholders will therefore be significantly better off if the
      rescue plan is approved.

The rescue plan requires approval by TZ's shareholders at the
company's Annual General Meeting on February 26, 2010. QVT urges all
shareholders to support the rescue plan by voting IN FAVOUR of the
resolutions.

QVT itself is ineligible to vote on the rescue plan resolutions,
but will vote in favor of the re-appointment of the current directors
of TZ: Chairman Mark Bouris, Kenneth Ting and Willem de Vlugt.

Further information about the rescue plan is set out in the TZ
AGM Documents. TZ shareholders should read these documents carefully
before making any decision in relation to TZ or how to vote at the
Annual General Meeting.

For Further Information Call:
    In Australia & Asia:
    Tim Allerton
    City PR
    +61-2-9267-4511
    Worldwide:
    Shawn Pattison/Patrick Clifford
    The Abernathy MacGregor Group
    +1-212-371-5999

Contact:

CONTACT: In Australia & Asia: Tim Allerton, City PR,
+61-2-9267-4511;Worldwide: Shawn Pattison or Patrick Clifford, The
Abernathy MacGregorGroup, +1-212-371-5999