DOWNER EDI LIMITED — Capital/Financing Update 2011

May 5, 2011

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Media/ASX and NZX Release

DOWNER-BOMBARDIER NAMED PREFERRED TENDERER FOR PTA CONTRACT

6 May 2011

Downer EDI Limited (Downer) announced today that the Western Australia Government had selected a 50:50 joint venture between Downer and Bombardier Transportation as preferred tenderer for a major railcar maintenance and cleaning contract.

The Chief Executive Officer of Downer, Grant Fenn, said the contract is with Western Australia’s Public Transport Authority (PTA) and will run for seven and a half years with the option of an additional seven and a half years.

"The contract is worth about $317 million for the first seven and a half year term, after allowing for escalation," Mr Fenn said.

“It covers all the maintenance and cleaning work for the PTA’s entire narrow-gauge rail fleet of 239 cars.”

At the moment, Downer-Bombardier maintains the PTA’s B-series fleet while the older A- series fleet, including the Australind, are serviced in-house under labour hire contracts.

The new contract is expected to be signed by 30 June 2011 and take effect from January 2012, subject to the successful completion of final contract negotiations.

Downer’s Rail division has over 100 years’ experience and is the leading provider and maintainer of passenger and freight rolling stock in Australia. The division’s broad range of capabilities and expertise includes passenger cars, locomotives, freight wagons and light rail.

CONTACT DETAILS

Investors: Ross Moffat, EGM Investor Relations Media: Michael Sharp, Group Head of Corporate Affairs

M: +61 412 256224 M: +61 439 470145

Downer EDI Limited (www.downergroup.com) provides comprehensive engineering and infrastructure management services to the public and private Minerals & Metals, Oil & Gas, Power, Transport Infrastructure, Telecommunications, and Water sectors across Australia, New Zealand, the Asia Pacific region and the United Kingdom.

A Triniti Business Campus, 39 Delhi Road, North Ryde NSW 2113 P PO Box 1823, North Ryde NSW 2113 T +61 2 9468 9700 | F +61 2 9813 8915 | W downergroup.com

Downer EDI Limited ABN 97 003 872 848