MACMAHON HOLDINGS LIMITED — M&A Activity 2008

Jun 19, 2008

Friday 20 June 2008

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ASX Announcement

Ausdrill Board unable to make case for not ACCEPTING Macmahon Offer

• No alternative proposed for Ausdrill shareholders

• Share price now highly likely to drop if Macmahon bid lapses

• Ausdrill’s Board argues that the company is undervalued but chooses not to provide an Independent Expert’s valuation

• Case for ACCEPTING now even more compelling

Macmahon Holdings Limited (ASX: MAH) advises that the Board of Ausdrill has been unable to make a credible case for not accepting Macmahon’s Takeover Offer for the company.

Macmahon today received the Ausdrill Target’s Statement in relation to the Macmahon Offer and sees no convincing arguments to support the decision of Ausdrill Directors not to recommend Macmahon’s Offer.

Ausdrill’s Board has not offered its shareholders any alternative to the Macmahon Offer.

Instead, Ausdrill has asked its shareholders to make an act of faith that Ausdrill will improve on its performance of recent years and deliver higher returns and higher earnings per share growth to its shareholders.

Ausdrill has made strong statements about the value of its shares but has failed to seek the views of an Independent Expert who could provide shareholders with a detailed analysis and an objective, unbiased opinion on whether Macmahon’s Offer is fair and reasonable.

Importantly for shareholders, Ausdrill shares are trading at current levels only because of Macmahon’s Offer. Ausdrill’s share price would most likely fall heavily if the Macmahon Offer lapses with no alternative proposal on the table.

Macmahon Chief Executive Officer, Nick Bowen, said Ausdrill’s defence arguments are based on a promise to substantially improve its future performance relative to its performance prior to Macmahon making its Takeover Offer.

“The complete absence from the Target’s Statement of any credible case for not accepting the Takeover Offer makes its more compelling than ever for Ausdrill shareholders to ACCEPT the Macmahon Offer,” Mr Bowen said.

Macmahon will issue a detailed response to Ausdrill’s Target’s Statement early next week.

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Media contact:	Gareth Widger Group Public Affairs Manager Mobile: 0419 918 272
Investor contacts:	Nick Bowen Chief Executive Officer Telephone: (08) 9365 1200
	Ross Carroll Chief Financial Officer Mobile: 0417 096 478

Macmahon Holdings Ltd ABN 93 007 634 406

Level 3 1 Adelaide Terrace East Perth WA 6004 PO Box 198 Cannington WA 6987 Telephone: (08) 9365 1111 Facsimile: (08) 9365 1186 Web: www.macmahon.com.au Email: info@macmahon.com.au