SOUTHERN CROSS ELECTRICAL ENGINEERING LTD — Earnings Release 2009

Feb 22, 2009

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SOUTHERN CROSS ELECTRICAL ENGINEERING LIMITED

ASX/MEDIA RELEASE

23 February 2009

Southern Cross Electrical Engineering’s Half Year results released

Electrical and instrumentation installation company Southern Cross Electrical Engineering Limited (ASX:SXE) today announced an operating profit for the six months to 31 December 2008 of $8.4 million before unrealised foreign exchange losses. The reported net profit after tax result was $7.2 million. Revenue for the current half year of $57.7 million was an increase of 16% on the December 2007 result.

Financial Highlights

• Total revenue up 16% to $57.7m

• Earnings before interest, tax, depreciation and amortisation up 11% to $10.3m

• Net profit after tax (“NPAT”) was $8.4m before unrealised foreign exchange losses on USD currency hedges taken out for Buzwagi

• NPAT was up 5% to $7.2m

• Cash flow generated from operating activities was $4.6m

• Closing cash balance was $24.4m

• Net cash was $23.7m

• Interim dividend of 2.0 cents per share fully franked consistent with prior year

Managing Director, Stephen Pearce said “These results prove the fundamentals of the business remain strong. The margins across the period are in line with our expectations given the mix of cost plus and lump sum projects and a full six months of costs associated with being a listed entity. We have $24.4m cash on the balance sheet which leaves the Company well placed to take advantage of growth opportunities.”

One of the major projects undertaken in the half was the Cape Lambert port expansion project. This project commenced in February 2008 and SXE expects to begin demobilising from site from the fourth quarter FY09. This has been a very successful

A.B.N. 92 009 307 046 EC001681

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

project for the Company having received the safety contractor of the month award on 3 occasions.

The other major projects the Company worked on in the six months were:

• Hope Downs 1 Stage 2 expansion;

• Cerro Corona gold mine in Peru; and

• Buzwagi gold mine in Tanzania.

Work at the Cerro Corona project is now complete and this project achieved zero LTI’s after more than 670,000 manhours were completed. Mr Pearce said “this achievement was extremely pleasing given the work was performed at over 4,000 metres above sea level. SXE has the proud record of zero LTI’s for the last 4.5 years.”

As part of its growth strategy SXE is currently pursuing a number of tenders in the oil and gas sector. The notices of award for these tenders are not expected until the fourth quarter with work anticipated to commence during the first quarter of FY10. Revenue for FY09 will continue to be driven by contracted work for mining companies. Mr Pearce said “demand for SXE’s services from the mining companies appears to be holding up despite the winding back of capital investment by these companies.”

SXE is pleased to announce it has been selected as preferred electrical contractor for some of the early phase works at the Cape Preston project. On the basis that contract negotiations are concluded in March and works commence shortly thereafter SXE anticipates full year revenue for the group will be in excess of $94m up from $84m in the prior year.

Mr Pearce said “with the current economic conditions it is very difficult to provide definitive full year guidance, however, based on revenues of $94m for the year and given the pending conclusion on a number of key contracts, the full year profit is anticipated to be $14.5m compared to $11.3m last year.”

Ends

For further information, please contact:

Stephen Pearce, Managing Director Stephen Fewster, Chief Financial Officer +61 (8) 9410 1833