AUSTIN ENGINEERING LIMITED — Earnings Release 2007

Aug 22, 2007

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ASX AND MEDIA RELEASE

OPERATING NPAT INCREASES BY 207%

Highlights for 2007 Financial Year

• Consolidation and growth per strategy announced at 2006 AGM

• Completed acquisition of Kaldura Industries in Mackay

• Acquired the Austbore business in Mackay

• EBIT (excluding gain on sale of properties) up 173% to $7.3m

• NPAT (excluding gain on sale of properties) up 207% to $4.9m

• Earnings per share (excluding gain on sale of properties) up 206% to 12.45 cents

• Maiden half year dividend of 0.5 cents per share

• Full year dividend of 4.0 cents per share, up 100%

Brisbane, 23 August 2007: Austin Engineering Limited (ASX Trading code: ANG ) today announced a record NPAT of $4.9 million, an increase of 207% over 2006 NPAT (excluding the effect of the gain on sale of properties). The result also included a $0.3 million expense for costs relating to the sale of properties in the previous year.

Commenting on the results, Chairman Peter Fitch stated that the 2006/2007 financial year had been a key period of consolidation and development for the Company. “The benefits of the strategic direction previously undertaken had now become evident through the significantly improved financial result from the previous year” he said.

“The result for the year included a full year’s worth of contribution from the Kaldura Industries business as well as three months of contribution from the recently-acquired Austbore business in Mackay. Both of these business units have performed ahead of expectations. In addition, the operational performance of the existing Perth and Brisbane business units has resulted in improved capacity utilisation and efficiencies” he said.

Earnings per share increased by 206% to 12.45 cents chiefly through tight control of costs and efficiencies gained through automation.

“It is also pleasing to report that shareholders are able to enjoy an increased fully-franked dividend, up 100% from 2 cents to 4 cents per share over the year” he said.

The Company enters the 2007/2008 financial year with another record order book and conditions within the mining and resources business sector are expected to remain buoyant in the coming years. As previously advised to the market, EBIT is forecast to be in excess of $10 million for 2007/2008.

Further details on the financials and operations are included in the following table as well as in the Company’s preliminary final report, also released to the market on 23 August 2007.

End

For further information, contact Michael Buckland or Colin Anderson on 07 3271 2622.

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Austin Engineering Limited Highlights for 2007 Financial Year

		Increase	**2007 **	2006
		%	**$m **	**$m **
	Revenue	18%	57.50	48.88
	Excluding gainonsale ofpropertiesin 2005/2006:
	EBIT	173%	**7.31 **	2.68
	PBT	209%	7.09	2.29
	NPAT	207%	**4.97 **	**1.62 **
	Earnings per Share (cents)	206%	12.45	**4.07 **
	Including gainonsale ofpropertiesin 2005/2006:
	EBIT	11%	**7.31 **	6.59
	PBT	15%	7.09	6.19
	NPAT	14%	**4.97 **	4.35
	Earnings per Share (cents)	14%	12.45	10.93
	Net Assets	88%	**18.61 **	**9.91 **
	Dividends per Share (cents)	100%	4.0	2.0

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