GOODMAN GROUP — Management Reports 2009

Jan 21, 2009

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Goodman achieves planned operational efficiency initiatives

Date 22 January 2009 Release Immediate

Highlights:

• • Targeted 20% annualised operational cost savings achieved
• • 175 positions restructured or made redundant across the business globally, representing a circa 16.5% reduction in headcount
• • Consolidation of office space
• • Outsourcing of some functions
• • Consolidation of Continental European functions
• • Continue to undertake procurement initiatives

Goodman today announced a number of initiatives to further streamline and strengthen its operations in light of current conditions. This follows the completion of a strategic operational review foreshadowed in November 2008 by the Board and management. These initiatives are aimed at ensuring that Goodman remains well positioned to achieve its long term objectives. These changes have achieved an overall reduction in overheads of approximately 20% on an annualised basis.

Mr Greg Goodman, Group CEO said, “We announced in November that we would undertake this review to examine every aspect of our operations to reduce costs, maximise efficiencies and position the Group for a strong future.

The Board and management are confident that together these initiatives will mean Goodman is well placed to manage through the current environment and take advantage of any improvement in market conditions.”

As a result of the review Goodman will:

• • Restructure or make redundant 175 positions (circa 16.5% of headcount) across a range of functions around the world.
• • Consolidate office space.
• • Significantly reduce discretionary spending.
• • Outsource some functions previously managed in house, namely architectural and some IT services.
• • Consolidate departments including the merging of the Continental European functions.

Level 10, 60 Castlereagh Street, Sydney NSW 2000 | GPO Box 4703, Sydney NSW 2001 Australia Tel +61 2 9230 7400 | Fax +61 2 9230 7444 | info@goodman.com | www.goodman.com Goodman Limited ABN 69 000 123 071 Goodman Funds Management Limited ABN 48 067 796 641 AFSL Number 223621

• • Continue to undertake procurement initiatives.
• • Prioritise projects, so that only the highest quality projects are progressed that can deliver the best margins.

“Making decisions like these, particularly those affecting staff, is never easy but this is the right move for the Group given the current economic climate. We have offered practical support in the form of financial and outplacement assistance to those employees affected.

We have had to make a number of difficult decisions to adapt to the changed environment whilst retaining the confidence of our investors, customers and staff”, Mr Goodman said.

Goodman remains committed to the execution of its own+develop+manage business strategy and strong customer service focus. All of these initiatives have been undertaken in the best interests of the Group’s stakeholders, and importantly the Group has retained the critical specialist skills within the business to successfully achieve this.

For further information, please contact Goodman: Greg Goodman Group Chief Executive Officer Tel +61 2 9230 7400

About Goodman : Goodman owns, develops and manages industrial property and business space globally. It is the largest industrial property group listed on the Australian Stock Exchange and one of the largest in the world, with offices across Asia Pacific, UK and Europe. At the core of the Group’s success is its integrated customer service model, which reflects the organisation’s commitment to creating long-term customer relationships.

Level 10, 60 Castlereagh Street, Sydney NSW 2000 | GPO Box 4703, Sydney NSW 2001 Australia Tel +61 2 9230 7400 | Fax +61 2 9230 7444 | info@goodman.com | www.goodman.com Goodman Limited ABN 69 000 123 071 Goodman Funds Management Limited ABN 48 067 796 641 AFSL Number 223621