[LOGO] TENON
WOOD SOLUTIONS TO THE WORLD                                         NEWS RELEASE


TO:        THE BUSINESS EDITOR
From:      Paul Gillard - Director, Corporate & Legal Services, TENON LIMITED
Telephone: 64-9-571 9846
Fax:       64-9-571 9872


Please note: If you do not receive 1 page(s) including this page, or if any page
is not readable, please call the Marlene Krone immediately on telephone 64-9-571
9808.

Information on Tenon Limited can be found at HTTP://WWW.TENON.CO.NZ.


                STOCK EXCHANGE LISTING: NEW ZEALAND (TEN) (TENPA)
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                 TENON OBTAINS BINDING TAX RULING IN RESPECT OF
                         PROPOSED SECOND CAPITAL RETURN


Auckland, 22 November, 2004 - Tenon advised today that it had received a binding
ruling from the Inland Revenue  Department,  confirming that the proposed return
of capital to be made in  February  2005 will NOT be a dividend  for New Zealand
tax purposes. As a result of this binding ruling, the Company is not required to
deduct  any  New  Zealand  tax  from  the  proposed  return  of  capital  to all
shareholders, whether they are New Zealand residents or non residents.

No  further  tax  obligations   arise  with  respect  to  New  Zealand  resident
shareholders holding their Tenon shares on capital account.

All other  shareholders  should consult their tax advisors with respect to their
tax obligations.

The  proposed  capital  return  is  subject  to the  approval  of the  Company's
shareholders  at a  Shareholders'  Meeting to be held on Wednesday,  22 December
2004.


ENDS