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DOWNER EDI LIMITED Capital/Financing Update 2009

Mar 1, 2009

64784_rns_2009-03-01_7fc1eb40-5a88-4ea7-b679-e4c29dd24fe3.pdf

Capital/Financing Update

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Company Announcements Platform

Australian Securities Exchange and New Zealand Stock Exchange

2 March 2009

DOWNER EDI SECURES $440 MILLION ALLIANCE DEAL WITH XSTRATA

Downer EDI Limited (Downer EDI) today announced its Engineering Division has secured a contract with Xstrata Coal with a total works value of approximately $440 million for the development of a coal handling and preparation plant (CHHP) in the Upper Hunter Valley in New South Wales.

Downer EDI Managing Director and CEO, Geoff Knox, said the 18-month Alliance contract reinforced the company’s strong relationship with Xstrata Coal and demonstrated the company’s sound outlook.

“This is another great example of Downer EDI’s successful Alliance approach with one of the world’s largest diversified mining groups,” Mr Knox said.

“We have a strong presence throughout the Hunter Region and this project provides further economic stimulus securing over 400 jobs in the Region.

On the back of a very sound half-year result, this win demonstrates the continued strong demand for the wide range of services provided by Downer EDI.

Our Engineering Division has been providing services to Xstrata at its Liddell and Mount Owen mines in the Hunter for the past three years and we look forward to further growing our relationship with Xstrata as it too grows its global presence,” he said.

The broad scope of work to be completed under the Alliance includes:

  • CHPP -civil, structural, mechanical and process

  • CHPP and MIA (site-wide) - electrical, instrumentation and control

  • • 500kV line relocation (subject to relevant regulatory approval)

  • 66kV supply to mine substation from Denman.

Downer EDI’s Engineering Division is well placed to further grow its market share in this strong sector.

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CONTACT DETAILS

Investors: Ross Moffat, Executive General Manager Investor Relations, T: +61 412 256224 Media: Maryanne Graham, Group Manager, Corporate Affairs, T: +61 407 252230.

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 and the United Kingdom.

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