SOUTHERN CROSS ELECTRICAL ENGINEERING LTD — Board/Management Information 2008

Jul 27, 2008

==> picture [249 x 46] intentionally omitted <==

SOUTHERN CROSS ELECTRICAL ENGINEERING LIMITED

ASX RELEASE

28 July 2008

Manager Company Announcement Office Australian Stock Exchange Level 4, 20 Bridge Street SYDNEY NSW 2000

Appointment of Managing Director

Southern Cross Electrical Engineering Limited (ASX:SXE) is pleased to announce the appointment of Mr Stephen Pearce as Managing Director effective 18 August, 2008.

Stephen Pearce brings over twenty years experience in senior management roles in the mining, oil and gas and utilities industries. He previously held the position of Chief Financial Officer (“CFO”) with Alinta Limited, an A$8 bn energy and utility company based in Perth, Western Australia.

In his role as CFO, Stephen was integral to the development and execution of strategic initiatives at Alinta and was a key member of the team that acquired and integrated AGL’s infrastructure assets.

Mr Tomasi said he welcomed the addition of Stephen to Southern Cross and believes with Stephen’s leadership and vision combined with the existing team, the business is in a strong position to grow into a major engineering company.

Mr Pearce said he was looking forward to leading Southern Cross in its next phase of development and building further on the strong foundation that has been established under Frank’s leadership.

Upon Stephen’s commencement, there will be a short transition period after which Mr Tomasi will become the non-executive Chairman of the Company.

Stephen is a Chartered Accountant, a Chartered Secretary and a Member of the Australian Institute of Company Directors.

The key terms of Mr Pearce’s employment contract are attached.

-ENDS –

Mr Frank Tomasi

Executive Director and Chairman Southern Cross Electrical Engineering Limited

Southern Cross Electrical Engineering Limited

+61 (8) 9410.1833 www.scee.com.au

==> picture [87 x 48] intentionally omitted <==

A.B.N. 92 009 307 046 EC001681

41 MACEDONIA STREET, NAVAL BASE, WESTERN AUSTRALIA 6165 TELEPHONE: 61 8 9410 1833 FAX No: 61 8 9410 2504 EMAIL: scee@scee.com.au

Attachment – Summary of Key Terms and Conditions of Stephen Pearce’s executive employment agreement with Southern Cross Electrical Engineering Limited

Term

Stephen Pearce’s appointment commences on 18 August 2008 and will continue until terminated in accordance with his contract.

Salary

Total Gross Salary of A$500,000 per annum inclusive of superannuation. This amount will be reviewed annually and may be increased at the Board’s discretion.

Incentives

A maximum annual bonus of 40% of base salary. Agreed performance criteria will be determined with discretionary payments based on both individual and corporate performance.

Senior Management Long Term Incentive Plan (“STIP”)

As indicated in the Prospectus Document dated 30th October 2007, 1,500,000 SCEE Options will be granted to the Managing Director with the following key terms:

• Each option is issued over 1 unissued Share;

• Each Option will be granted at no cost;

• The exercise price of each Option is $1.15, which is payable by the holder on exercise of each vested Option;

• The Options will vest, and only become exercisable, in 3 equal tranches commencing from the anniversary date of the grant and provided that annual targets determined by the Board are achieved; and

• The exercise period for the Options will expire on the date 4 years after vesting.

The formal issue of these options will require ratification by shareholders at the company’s November 2008 AGM.

Termination

Southern Cross may terminate Mr Pearce’s employment with 12 months notice. Southern Cross may elect to pay Mr Pearce an amount equivalent to 12 months Base Salary in lieu of notice.

Mr Pearce will be entitled to payment of accrued annual leave and long service leave if applicable.

Southern Cross may terminate Mr Pearce’s employment without notice in the case of misconduct and in certain other circumstances.

Mr Pearce may terminate his employment at any time by giving six months notice.