AUSTAL LIMITED — Capital/Financing Update 2008

Nov 13, 2008

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COMPANY ANNOUNCEMENT 14 November 2008

AUSTAL AWARDED JOINT HIGH SPEED VESSEL (JHSV) CONTRACT

Austal is pleased to announce the award of a Detailed Design and Construction Contract for the US Navy and Army’s Joint High Speed Vessel (JHSV) program.

As Prime contractor, Austal will design and construct the first 103-metre joint-use high speed support vessel, valued at US$185,433,564 with options for 9 additional vessels expected to be exercised between FY09 and FY13.

Similar to the Austal-built “WestPac Express” operated by the US Marines for the past seven years, the JHSV will be capable of transporting troops and their equipment, supporting humanitarian relief efforts, operating in shallow waters and reaching speeds in excess of 35 knots fully loaded. The vessels will be a joint-use platform between the United States Army and Navy.

Austal Managing Director Bob Browning commented, “Austal is very proud to have been selected to build an important part of the US Navy’s fleet. This 10 vessel program is an important step in Austal’s strategy to create longer-term, more predictable earnings for our investors.”

“As the only team in the US with the experienced workforce, purpose built facilities, and proven aluminium vessel construction processes, Austal will deliver a low risk JHSV platform to the US Army and Navy.”

The vessels will be built at Austal’s US shipyard located in Mobile, Alabama, where work is continuing on the first phase of a new state-of-the-art Modular Manufacturing Facility (MMF). Upon completion in mid-2009, the first half of the 70,000 m2 MMF will be available for the fabrication of all the JHSV modules.

Construction is also continuing on the US Navy’s 127 metre trimaran Littoral Combat Ship, LCS 2 “Independence”, which was recently christened at Austal USA and is scheduled to commence sea trials early next year. Mr Browning said the US Navy’s ongoing commitment to a 55-vessel LCS program as

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part of its 313 ship fleet meant there was strong chance Austal would be awarded a second LCS in early 2009.

ENDS

For further information:

Austal Public Relations Tel: 08 9410 1111, Fax: 08 9410 2564 Email: pubrel@austal.com www.austal.com

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