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Edison Initiates Coverage on Sealegs Corporation

August 6, 2013

LONDON, August 6, 2013 /PRNewswire/ –

Edison Investment Research, a leading international investment research firm,
announces the initiation of full coverage of Sealegs Corporation (SLG), the innovative
amphibious craft manufacturer.

(Logo:
http://photos.prnewswire.com/prnh/20130417/608168 )

Sealegs has developed an innovative boating solution for the transition between land
and water that is attracting increasing international interest. The company has come
through a period of restructuring and is now targeting faster growth with new products and
market opportunities. A DCF of the existing business equates to near the current share
price, suggesting the growth opportunities are in effect for free.

The company’s history is in manufacturing boats and has sold over 750 amphibious boats
to more than 30 countries during the past 10 years, although 80% of sales in recent years
have been to New Zealand, Australia, the US and the UK. The business is transitioning from
selling solely boats to a growth strategy of selling technology kits to other boat
manufacturers via a licensing arrangement, although it will continue to manufacture its
own boats. The company is experiencing strong interest in its technology kits from both
the recreational and professional boat markets. It is developing a new product for larger
boats (up to 12m), which is more suited to military, marine rescue and law enforcement
operations.

The stock trades below its peers on an EV/sales basis, but at a premium on an earnings
basis. The stock price appears to fully reflect the value of the existing business,
assuming a steady state, but does not reflect any of the growth potential of its new
products. Our combined DCF model for both the existing and new business values the company
at NZ$0.26 or 53% above the current share price.

For the full report see:

http://www.edisoninvestmentresearch.com/research/company/sealegs-corporation

All reports published by Edison are available to download free of charge from its
website http://www.edisongroup.com.

About Edison Investment Research

Edison, the investment intelligence firm, is the future of investor interaction with
corporates. Our team of over 100 analysts and investment professionals works with leading
companies, fund managers and investment banks worldwide to support its capital markets
activity. We provide services to more than 400 retained corporate and investor clients
from our offices in London, New York, Berlin, Sydney and Wellington. Edison is authorised
and regulated by the Financial Services Authority (

http://www.fsa.gov.uk/register/firmBasicDetails.do?sid=181584).

Edison is not an adviser or broker-dealer and does not provide investment advice.
Edison’s reports are not solicitations to buy or sell any securities.

        For more information please contact:
        Bruce McKay
        Edison Investment Research
        +64-(0)4-894-8555

        Roger Johnston
        Edison Investment Research
        +44-(0)203-077-5722
        industrials@edisongroup.com


    Photo: 

http://photos.prnewswire.com/prnh/20130417/608168

SOURCE Edison Investment Research


Source: PR Newswire