LENDLEASE GROUP — Capital/Financing Update 2008

Jul 7, 2008

Stock Exchange Announcement

Lend Lease reaches financial close on £63 million Lancashire Schools programme

8 July 2008

Lend Lease Corporation Limited (“Lend Lease”) today announced that a Catalyst Lend Lease consortium that includes Bovis Lend Lease has achieved financial close with Lancashire County Council on the £63 million (approximately A$130 million) Phase 2A Lancashire Building Schools for the Future (“BSF”) programme in England.

The latest phase of Lancashire’s BSF programme, part of a Government initiative to provide a new generation of sustainable secondary schools throughout England, will be delivered via a 27-year PFI agreement and includes the construction of two further secondary schools – Unity College in Burnley, opening in September 2010, and Marsden Heights Community College in Pendle, opening in April 2010. Together, the new schools will accommodate over 2,000 pupils.

The project will be delivered via Lend Lease’s integrated model led by Catalyst Lend Lease, with Bovis Lend Lease being responsible for the construction of all schools under the programme. Construction of Marsden Heights began in May under an early works agreement and work on Unity College will begin next month.

“Reaching financial close on Phase 2A is an important milestone for us all,” said David Snowdon, Catalyst Lend Lease’s General Manager of the Local Education Partnership (“LEP”) with the County Council.

“This is the first BSF scheme to sign up to a full second phase and that achievement reflects a real spirit of cooperation and determination on the part of everyone involved,” he added.

Low energy consumption and low running costs will be an important feature of all the new schools under the programme, with the principal source of heating to be carbon-friendly biomass boilers that burn wood chips rather than fossil fuels. Additionally, photo-voltaic cells built into the windows will convert sunlight into electricity and rooftop solar collectors will help to pre-heat the schools’ water systems. It is also planned to install wind turbines to generate additional electricity, highlighting the Company’s and County Council’s commitment to sustainability.

In December 2007, the County Council and Catalyst Lend Lease reached financial close on Phase 2 of the BSF programme, a £44 million (approximately A$90 million) project to build Sir John Thursby School and Ridgewood School, on a single site in Eastern Avenue, Burnley. Work is progressing well on this project and the schools are due to open in September 2009.

ENDS

Further information, please contact:

Sally Cameron Lend Lease Corporation Tel: 02 9236 6464

Lend Lease Corporation Limited ABN 32 000 226 228 Level 4, 30 The Bond 30 Hickson Road Millers Point NSW 2000 Australia

Telephone +612 9236 6111 Facsimile +612 9252 2192 www.lendlease.com