MATRIX COMPOSITES & ENGINEERING LIMITED — Capital/Financing Update 2011

May 9, 2011

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ASX/Media Release 10 May 2011

MATRIX COMPOSITES & ENGINEERING LIMITED – SHARE PURCHASE PLAN

On 4 April 2011, Matrix Composites & Engineering Limited ( Matrix or Company ) announced that it proposed to raise $6.0 million from a Share Purchase Plan ( SPP ) to eligible shareholders in Matrix.

The SPP closed on 5 May 2011 with total acceptances exceeding 80%, or approximately $4.8 million. The Company’s share registry will now proceed with the allotment and shareholders can expect their holding statements to be despatched by Friday, 13 May 2011. Shares issued under the SPP will be quoted on the ASX by Thursday, 12 May 2011.

The net funds raised from the recent Institutional Placement ($30.175 million) and SPP will be used for property development (specifically Henderson Stage 2 - construction of new headquarters), capital expenditure relating to new product developments, expansion of overseas facilities and general corporate purposes.

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