DOWNER EDI LIMITED — Capital/Financing Update 2008

Jul 8, 2008

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Company Announcements Platform

Australian Securities Exchange and New Zealand Stock Exchange

Wednesday, 9 July 2008

Downer EDI announces over $800 million in contracts secured

Downer EDI Limited (Downer EDI) today announced it had secured more than $800 million in contracts in recent months.

Commenting, Downer EDI CEO Mr Geoff Knox said: “The Company continues to enjoy strong macro economic conditions in the key sectors in which it operates. The strength of all our Divisions has been particularly pleasing, reflected by a number of new contract wins which are important not only in revenue terms, but more significantly as a validation of our business strategies.”

Highlights include:

• $150M, five year contract with TelstraClear in New Zealand to provide comprehensive technical services nationwide covering network deployment, maintenance and customer provisioning services across TelstraClear's entire telecommunications network.

• Mechanical & Electrical contracts in excess of $122M.

• Growth in the transmission business with a further $125M in contracts.

• $45M Blasting Services contract in Tasmania.

• Instructions to mobilise on four large coal projects.

• Over $220M in new and renewals Infrastructure projects work across Australia and New Zealand, with further expansion into the Pacific.

Downer EDI Engineering

Downer EDI Engineering CEO Mr Wayne Nolan said: “Our telecommunications strategy is now bearing fruit, with the award of a major national agreement with TelstraClear positioning us as the largest and most successful provider of technical services in the New Zealand telecommunications market, and the only organisation with a national workforce.

Level 3, 190 George Street T 61 2 9251 9899 Sydney NSW 2000 F 61 2 9251 1987 PO Box N692 W www.downeredi.com Grosvenor Place NSW 1220 E info@downeredi.com

Downer EDI Limited ACN 003 872 848

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Downer EDI Engineering’s Queensland business continues its strong growth in both Mechanical and Electrical operations, particularly in the resources and petrochemical sectors. Recent successes include more than $122M in mechanical work with Caltex, BP and Cement Australia.

“These contracts demonstrate the continuing development of our Mechanical capability. Combined with an additional $125M of Transmission projects developed under the Powerlink Alliance, our Queensland operations continue to go from strength to strength. Our Renewable Energy business enjoys continuing success and is now recognised as one of the top system integrators in wind farm design and construction, with $65M in contracts now underway on the Waubra Farm, Capital Hill and Snowtown projects. Equally, our more traditional business of designing and constructing HV substations is experiencing a resurgence with the expansion of the power infrastructure market in New South Wales, with over $30M in orders for Country Energy and Transgrid.

“In Western Australia, Downer EDI Engineering’s Contracting division continues its work on the Cloud Break Mine site for Fortescue Metals with a major electrical and instrumentation order secured (currently valued at $45M) and with another major order secured on the Boddington Gold Mine site east of Perth. This $47M contract is for the complete electrical and instrumentation works on the Wet Plant site,” he said.

Downer EDI Mining

The Mining Division’s Blasting Services business continues to enjoy success, with the signing of a $45M, five year contract for the manufacture and supply of explosives with the Australian Bulk Minerals Savage River Mine in Tasmania.

Commenting, Downer EDI Mining CEO Mr Damien O’Reilly said: “In addition to this contract, we have recently secured a $20M contract with Rio Tinto at Paraburdoo on the 4 East Extension Project, on the back of innovative solutions offered by way of a regional Indigenous employment and training development package tailored to meet their current and future needs.

“The $20M contract with Bulga Coal Management, to remove overburden and mine coal at the Bulga Coal Mine, has further strengthened the relationship Downer EDI has with Xstrata companies across a number of Divisions and sites, including the Bulga mine.

“Collectively, these wins highlight the success of the Mining team in extending the Division’s base of activities. Including recent instructions for Downer EDI Mining to mobilise its personnel and equipment to four separate coal projects with an estimated combined value

Level 3, 190 George Street T 61 2 9251 9899 Sydney NSW 2000 F 61 2 9251 1987 PO Box N692 W www.downeredi.com Grosvenor Place NSW 1220 E info@downeredi.com

Downer EDI Limited ACN 003 872 848

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of over $400M in the eastern States, these contract wins clearly underscore the ongoing reemergence of the division,” he said.

Downer EDI will announce full details of those contracts when they are finalised.

Downer EDI Works

Downer EDI Works recently extended its presence in the Pacific, signing a US$54M contract for the design and construction of 120km of coastal road upgrades in Vanuatu, including investigations, surveys, engineering evaluations, preliminary and detailed designs, pavement rehabilitation, drainage improvements and bitumen sealing.

Commenting, the CEO of Downer EDI Works, Mr David Cattell said: “This is an important project building essential infrastructure for a Pacific Island Nation under the sponsorship of the United States Government. The project builds on our successful delivery of a road upgrade program for the Vanuatu Government in 2001, and further develops our presence in the Pacific.”

The Vanuatu award is among a number of civil road and infrastructure contract awards won by Downer EDI Works in Australia and New Zealand totalling more than $220M, including:

• The $22M West Wanganui Highway maintenance contract in New Zealand;

• The $28M urban maintenance contract with the Wellington City Council; and

• The $19M of airport upgrade work at Karratha Airport.

- Ends -

Downer EDI Limited (www.downeredi.com) is an Australian top-100 company that provides comprehensive engineering and infrastructure management services to the public and private transport, energy, communications and resources sectors across Australia, New Zealand, Asia Pacific and into the United Kingdom.

Contact:

Media: Stephen Mockett, General Counsel & GM Corporate Services, +61 2 9240 9000 Investors: Ross Moffat, General Manager Investor Relations, +61 2 9240 9042

T 61 2 9251 9899 F 61 2 9251 1987

Level 3, 190 George Street Sydney NSW 2000 F 61 2 9251 1987 PO Box N692 W www.downeredi.com Grosvenor Place NSW 1220 E info@downeredi.com

Downer EDI Limited ACN 003 872 848