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Details of Dividend Reinvestment Plan

9:04AM, 5 Nov 2010 | DRP

Dear Shareholder

The Board of Directors of Scott Technology Limited is pleased to offer you
the opportunity to participate in the Company's Dividend Reinvestment Plan.
The Plan provides Eligible Shareholders with the option of receiving fully
paid ordinary shares in lieu of some or all of the net cash dividends paid by
Scott Technology Limited. This allows you to increase your investment in
Scott Technology Limited by acquiring additional shares, free of brokerage

Additional shares acquired under the Plan are most likely to be issued at a
discount to the trading price of the Shares on
the NZSX.

We have offered a Dividend Reinvestment Plan to shareholders for the
following reasons:

- It provides shareholders with choice to receive their dividend entitlement
in their own preferred combination of cash
and/or shares. Some shareholders prefer to receive a regular cash flow
stream, while other shareholders prefer to
accumulate shares for longer term capital growth.

- It aids the liquidity of the Company's shares. We are aware of interest by
potential investors to purchase shares in Scott Technology Limited, but
sometimes there are insufficient shares being offered for sale on the market
to meet this demand. The Company's 1 for 10 non-taxable bonus issue in March
2010,together with this Dividend Reinvestment Plan, assist with increasing
the liquidity of the Company's shares.

- We continue to seek acquisitions that will grow the Company and which are
based around our core strength of innovative industrial automation. Our
preference is to finance acquisitions through operating cash flows and to
minimise bank borrowings. Offering shares in lieu of cash dividends
potentially allows shareholders greater participation in these acquisitions.

Participation in the Plan is optional. You may elect to receive some or all
of your dividend entitlement in shares and the remaining portion in cash. If
you would like to continue to receive all of your dividend entitlements in
cash, you are not required to do anything in response to this offer.
If you elect to participate in the Plan and you return your completed Offer
Document to the Share Registry by 5pm on 29
November 2010, you will qualify to receive some or all of your 2010 final
dividend entitlement in shares (payable 3 December 2010). The Directors have
determined that, for the purposes of calculating the shares to be issued in
lieu of the 2010 final dividend, the weighted average sale price will be
based on the Shares sold on the NZSX for the period 30 November to 2 December
2010 and a discount of 10% will apply to the weighted average sale price.

Please read the Offer Document thoroughly as it describes the Plan and its
terms and conditions. If you have any questions, or are in any doubt as to
how to act, you should consult your financial adviser.

Kind Regards