DOWNER EDI LIMITED — Capital/Financing Update 2009

Jul 13, 2009

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Company Announcements Platform

Australian Securities Exchange and NZX

14 July 2009

Offer of Works Bonds in New Zealand closed fully subscribed

Downer EDI Limited ( Downer ) is pleased to announce that the Offer of Works Bonds has closed fully subscribed for NZ$150 million. The successful issue of Works Bonds continues Downer’s capital management strategy of diversifying its funding sources and extending its debt maturity profile. The proceeds of Works Bonds will be used to refinance debt on maturity and other general corporate purposes within the Downer group.

Works Bonds are new three year, fixed rate, unsubordinated, unsecured debt securities maturing 15 September 2012 issued by Works Finance (NZ) Limited ( Issuer ), an indirectly wholly-owned subsidiary of Downer.

Works Bonds carry an investment grade credit rating from Fitch Ratings of “BBB-“. As announced on 26 June 2009, the Interest Rate on Works Bonds has been set at 9.65% pa payable quarterly.

It is expected Works Bonds will begin trading on 15 July 2009 under NZDX code “WKS020”.

A minimum holding of NZ$3,000 of Works Bonds and multiples of NZ$1,000 thereafter is required.

The Issuer is currently listed on NZDX. Application has been made to NZX for permission to list the Works Bonds on the NZDX and all the requirements of NZX relating thereto that can be complied with on or before the date of this release have been duly complied with. However, NZX accepts no responsibility for any statement in this release.

For the purposes of NZX Listing Rule 7.12.1, the Issuer advises that the following securities have been issued on 14 July 2009:

• (a) Class of Security: Three year, fixed rate, unsubordinated, unsecured debt securities ("Works Bonds")

ISIN: NZWKSDT001C3

• (b) Number issued: 150 million Works Bonds

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• (c) Issue price: $1.00 per Works Bond

• (d) Payment: Cash

• (e) Amount paid up: Fully paid up

• (f) Percentage of the total class of securities issued: 100%

• (g) Reason for issue: The proceeds will be used to repay existing debt on maturity and for other general corporate purposes of the Downer group

• (h) Specific authority for the issue: Resolution of directors dated 26 May 2009

• (i) Terms or details of issue: As set out in the combined investment statement and prospectus dated 27 May 2009 (as amended by memorandum of amendments dated 28 May 2009 and memorandum of amendments dated 30 June 2009)

• (j) Total number of securities of the class in existence after the issue: 150 million Works Bonds

• (k) Treasury stock (acquisition only): Not applicable

• (l) Date of issue: 14 July 2009

Further information

Any questions or requests for information can be addressed to the following:

Downer

Investors: Ross Moffat, EGM Investor Relations, T: +61 2 9240 9042 Media: Maryanne Graham, GM Corporate Affairs, T: +61 2 4902 5578

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, infrastructure, communications and resources sectors, across Australia, New Zealand, the Asia Pacific region and the United Kingdom.

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