AUSTAL LIMITED — Earnings Release 2008

Feb 24, 2008

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ASX / NEWS RELEASE 25 FEBRUARY 2008

AUSTAL LIMITED HALF YEAR RESULTS

Austal Limited today released its half yearly results announcing a profit of $29.9 million after income tax.

Revenue in the period increased by 33% over the corresponding previous period with an increase in operating profit before tax of 63%.

The US Navy decision to cancel the second Littoral Combat Ship during the period is expected to result in reduced revenue and decreased profits in the second half of the year.

Executive Chairman, John Rothwell said:

“This pleasing result places Austal in a strong financial position to take advantage of long range growth opportunities, particularly in the USA.”

The US Navy recently approved a US $33 million grant to Austal to support the construction of a new Modular Production Facility. In addition, they have also announced revised plans for future Littoral Combat Ship acquisitions coupled to the current tender for up to eight large Joint High Speed Vessels.

ENDS

For further information contact: John Rothwell, Executive Chairman

or

Greg Metcalf, Chief Financial Officer Telephone: 08 9410 1111 Facsimile: 08 9410 2564 www.austal.com

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