AUSTAL LIMITED — Capital/Financing Update 2011

Mar 17, 2011

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COMPANY ANNOUNCEMENT 18 March 2011

LCS CONTRACT MODIFICATION FOR THE PROVISION OF TECHNICAL SERVICES

The USA division of Australian-headquartered Austal Limited has been awarded a USD$19,665,646 modification to the recently awarded US Navy contract for the construction of the first Independence Class Littoral Combat Ship (LCS) awarded under the 10 ship block buy contract.

The modification allows the U.S. Navy to exercise options for special studies, analysis, review and classservice efforts for the LCS program. Austal USA will assess engineering and production challenges and evaluate the cost and schedule risks from affordability efforts to reduce future LCS acquisition and lifecycle costs.

This contract modification augments Austal’s existing defence services credentials and positions the organisation to do further work in the defence services arena.

The majority of the work which has been contracted by Naval Sea Systems Command, in Washington, D.C, will be performed at Austal’s USA shipyard in Mobile, Alabama over the course of the next 12 months.

For additional information, including photos, video and an LCS fact sheet, please visit www.austal.com

ENDS

About Austal

Austal is the world leader in the design and construction of customised, high performance aluminium vessels for both commercial and defence applications. With shipyards in Western Australia and the USA (Mobile, Alabama), Austal has delivered more than 220 vessels for customers around the world.

Established in Western Australia in 1988, Austal’s product range includes passenger and vehicle‐passenger ferries, patrol boats, theatre support vessels, combat ships, multi‐role vessels and luxury private live‐aboards. Austal is also an established provider of worldwide vessel maintenance and management services.

For further information contact:

Richard Simons Chief Financial Officer Austal Limited Mob: +61 (0)413 274 834 Website: www.austal.com

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