31st August 2018

Harvey Norman Holdings Limited (HVN) is pleased to announce a renounceable pro rata entitlement offer of new fully paid ordinary shares in the Company (New Shares) to raise approximately $163.85 million (before costs) (Entitlement Offer) with an offer price of $2.50 per New Share (Offer Price).

The Entitlement Offer forms part of the Company's ongoing capital management program. It is intended that the proceeds from the Entitlement Offer will be used to reduce the amount of HVN consolidated entity debt.

The Entitlement Offer consists of an offer to Eligible Shareholders to subscribe for one New Share for every 17 existing ordinary shares held in the Company (Entitlement) at 7.00pm (Sydney time) on Wednesday 12 September 2018 (Record Date) at the Offer Price of $2.50 per New Share. Entitlements may be traded (in whole or part) on the ASX between Tuesday 11 September 2018 and Monday 8 October 2018 (inclusive). The Offer will not be underwritten.

For further information, please see http://www.harveynormanholdings.com.au/