LENDLEASE GROUP — Capital/Financing Update 2008

Jul 7, 2008

Stock Exchange Announcement

Actus Lend Lease moves forward with Army lodging privatization program

8 July 2008

Lend Lease Corporation Limited (“Lend Lease”) today announced that Actus Lend Lease has entered into a transition agreement with the United States Army to move forward with the first phase of the Privatization of Army Lodging (“PAL”) program.

The PAL program is an initiative by the US Army to privatise hotels at US Army installations. The project will include a five-year initial development period, resulting in more than 4,500 newly constructed and/or renovated hotel rooms on 12 US Army installations across the country with an initial development spend of US$400 million (approximately A$418 million). In addition to this, funding for over US$2.4 billion of reinvestment has been programmed for the project’s out year development.

Actus Lend Lease was selected in September 2006 to acquire, finance, design, develop, operate and own the hotels. Actus selected InterContinental Hotels Group (“IHG”) to operate and manage the hotels under a select number of IHG brands. The project will involve the construction and renovation of more than 45 hotels, thereby helping the US Army solve its chronic under funding of capital repairs and maintenance.

Dale Connor, Managing Director for Actus Lend Lease, said: “This Notice to Transition marks an unprecedented ‘first’ for the US Army. Never before has the Army partnered on such a wide scale with private sector firms to construct, renovate, maintain, operate and manage hotels on military installations. Actus Lend Lease is immensely proud to be aligned with IHG in this landmark public/private relationship, which stands to have transformative and long ranging benefits for the US military and its deserving families.”

The PAL program will provide superior hospitality services and facilities for soldiers, their families and government travellers to these facilities.

Actus Lend Lease now has ten operational installations across the United States, worth approximately US$5.8 billion in development value and is preferred bidder on a further two projects with a combined initial development budget of over US$800 million.

ENDS

Further information:

Sally Cameron Lend Lease Corporation Tel: 02 9236 6464

Lend Lease Corporation Limited Telephone +612 9236 6111 ABN 32 000 226 228 Facsimile +612 9252 2192 Level 4, 30 The Bond www.lendlease.com 30 Hickson Road Millers Point NSW 2000 Australia