EXCELSIOR CAPITAL LTD — Capital/Financing Update 2008

Feb 17, 2008

CMI Limited ABN 98 050 542 553 Level 4 240 Margaret Street Brisbane Qld 4000 Australia Postal address: PO Box 15844 City East Brisbane Qld 4002 Australia Telephone: (07) 3004 8188 Facsimile: (07) 3004 8180 Email: corporate@cmilimited.com.au Web: www.cmilimited.com.au

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18[th] February 2008

Agreement to sell engineering business

CMI Limited (‘CMI’) has reached an agreement with CMI Industrial Pty Ltd to sell all of the engineering division, other than TJM, to an entity controlled by CMI’s former managing director Max Hofmeister who has been intimately involved in the running of CMI’s engineering business over the course of the past 17 years.

CMI’s directors consider the sale will be in the best interests of the Company as selling the engineering division will:

• enable the company to pay down debt;

• allow the Company to remove an underperforming division which has limited growth potential; and

• allow the Company to focus its efforts into maximising the potential of the electrical, TJM and finance divisions.

Ordinary shareholders will have an opportunity to consider and approve the sale at an extraordinary general meeting to be held in late March 2008, with an effective completion date of 1 April 2008.

The proposed purchase price is $51 million. As part of the terms of the sale, the company will lend $17 million to CMI Industrial Pty Ltd on commercial terms repayable in 3 years with early repayment discounts if repaid earlier. Other than Mr Ray Catelan, the current Managing Director, all of CMI Limited head office staff, including senior management at the engineering plants, have agreed to take up positions with the new CMI Industrial Pty Ltd. CMI Limited new head office staff will be located at the TJM site at Robinson Road Geebung.

The sale, if approved by Shareholders, will result in a loss of approximately $11 million (after the tax benefit) on the current book value of CMI Limited’s engineering division. As a consequence of this loss there will be no half year dividend paid to Ordinary Shareholders this financial year. As advised in our announcement of 12 February 2008, we are waiting for the finalisation of the half year results to December 2007 on 29 February 2008, prior to making a commitment on the dividend to A Class shareholders.

The Directors expect profits from normal trading activity for the first half year 2008 will be similar to the corresponding half year results for financial year 2007.