DOWNER EDI LIMITED — Capital/Financing Update 2011

Mar 13, 2011

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Media/ASX and NZX Release

IMPACT OF CHRISTCHURCH EARTHQUAKE

14 March 2011

Downer EDI Limited (Downer) said today that subsequent to the release of Downer's half year result on 28 February 2011, it has become apparent that the flow-on effects of the Christchurch earthquake, which occurred six days earlier, will impact Downer's earnings in the 2011 financial year more than previously anticipated.

It is expected that the severity of the earthquake will now place significant pressure on maintenance and infrastructure expenditure not only in Christchurch, but across New Zealand, with reallocation of near term government spending from other areas and short term expenditure freezes as clients assess the earthquake's impact and the required recovery plan.

The negative impact on earnings before interest and tax is expected to be up to A$10 million for the full year.

Downer expects to participate in the rebuilding and reconstruction of Christchurch, but the timing of that work is unknown at this point.

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, Road & Rail 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