The scene of the shooting. Photo / Christine Cornege
"Police were fired upon and we engaged with the offender.
"He was shot a number of times," Mr Nicholls said.
The 50-year-old man was flown to Waikato Hospital by helicopter and was in a stable condition.
A neighbour of the couple, Anthony Fictoor, said he heard a commotion and police shouting "come out with your hands empty" about 9.45pm.
He went outside to investigate but quickly shut the door when he saw police cars and spotlights.
Mr Fictoor, an engineer, said he moved four of his young daughters into his bedroom to make sure they were safe.
He said the man and his partner had rented the house about six months but he knew them only in passing.
"Very polite. Never hear anything from them. I only knew them to say a friendly hello to."
He'd never heard a commotion from the house before and said the neighbourhood was usually quiet.
It has emerged that another man was removed from the house by the Armed Offenders Squad about midnight but it's not clear why or who the man was in relation to the couple.
It is understood he was taken to Paeroa police station.
A specialist search group at the scene today were looking for ammunition cartridges to determine how many shots were fired by both the offender and police.
A scene examination is underway at the house in Kaikahu Rd, where police in boiler suits are sifting through its contents.
A police photographer and detective are also on site.
It's not known if anything of interest has been found.
Auckland Rescue Helicopter crewman medic Dean Harvey said the 50-year-old man had been shot "several times" in the central body and was disoriented when the helicopter arrived after 11.20pm.
"He was conscious but confused. He was in a lot of pain."
The critically injured man was being treated by St John staff and was quickly transferred to the helicopter where he was stablised and flown to Waikato Hospital with an intensive care paramedic and police officer on board.
He was undergoing surgery this morning.
Mr Nicholls said he was glad no one else was injured during the incident, which would now be the subject of three investigations.
"As you can appreciate we are in a formative stage of the investigation and details are scant at present.
"What I can say is there is a lot of work ahead of us, there are three investigations that are currently underway.
"One looks at the circumstances of the event, the second looks at the policy, practice and procedures that were carried out during the course of the incident, and the third is one conducted by the Independent Police Conduct Authority."
A senior officer from outside of the district was being brought in to oversee the investigations, Mr Nicholls said.
Earlier today, 3News reported the woman was in a relationship with the man,
She was not injured during the incident, but police did not know how she came to be in the vehicle with the man.
The woman would be speaking with police and helping in the investigation, 3News said.
Police and a forensic team would today be going back to the scene on State Highway 2.
The highway, between Orchard East Road and Wharepoa Road, would be closed for most of the day, police said.
Heavy transport operators and motorists should take an alternative route such as SH1, SH27 and SH29 where possible.