SOUTHERN CROSS ELECTRICAL ENGINEERING LTD — Earnings Release 2010

Feb 21, 2010

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SOUTHERN CROSS ELECTRICAL ENGINEERING LIMITED

ASX Release

22 February 2010

Southern Cross Electrical Engineering Half Year Results

Electrical and instrumentation construction specialist, Southern Cross Electrical Engineering Limited (ASX:SXE) today released its first half financial results. The key financial numbers are:

Results	FY10	FY09	Variance
Revenue	$39.2	$57.7	($18.5)
Net profit after tax before business acquisition costs ($million)	$4.8	$7.2	($2.4)
Tax effected business acquisition expenses ($million)	$1.5	-	$1.5
Statutory net profit after tax ($million)	$3.3	$7.2	($3.9)
Earnings per share	2.8cps	6.0cps	(3.2cps)
Dividend per share	2.0cps	2.0cps	-

Operational highlights include:

• SCEE won the NECA Industrial Project Excellence Award and the Occupational Health & Safety (“OH&S”) Excellence Award for its Electrical and Installation works associated with the upgrade of Rio Tinto’s 80Mtpa Cape Lambert iron ore project;

• 0 lost time injuries;

• All projects are profitable with gross profit percentages in line with FY09;

• Successfully re-entered the oil & gas market with the award of the Pluto LNG Project storage and loading facility Electrical and Instrumentation Works with an approximate value of $35 million; and

• In line with its strategic objectives of expanding its oil and gas and infrastructure capacity, SCEE acquired Hindle Electrics, K.J. Johnson & Co and Oceanic Industries.

SXE undertook a number of projects across the period with the key projects being:

• MESA A dust suppression works;

• Boddington final commissioning;

• Sino Iron early site electrical works;

• Tiwest plant upgrade; and

• Brockman 4 eastern borefields power line.

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

SXE Chairman, Frank Tomasi, said “I am pleased to see SCEE re-enter the oil & gas market. This has been a strategic imperative for the Company given the amount of work that is planned and anticipated to come from this market over the next 3 – 4 years. The other important achievements against the Company’s strategic plan have been the acquisitions of Hindles, K.J. Johnson & Co and Oceanic Industries. These businesses substantially increase SCEE’s capabilities in the oil & gas market and infrastructure markets and moves SCEE back into the important east coast market.”

Mr Tomasi went on to say “FY10 is a challenging year for SCEE due to delayed commencement of some projects. This is expected to turnaround significantly in FY11 given the number of large scale projects that are due to commence in the energy, iron ore and gold markets which makes coming years look very positive.”

The Group generated cash flow of $2.9 million from operating activities and had a closing cash balance of $16.3 million after paying $5.4 million as the final dividend for the 2009 financial year.

Chief Financial Officer, Stephen Fewster, said “SCEE has continued to prudently maintain a strong cash position and balance sheet with a cash balance of $16.3m at 31 December 2010. After the settlement of the Oceanic acquisition the Company will remain in a net cash position. The combination of SCEE with the acquired businesses has created an excellent platform with strong capacity and capability to achieve the Company’s growth objectives. Therefore the primary focus for the business over the coming 12 months will be the pursuit of organic opportunities and delivering revenue growth from the acquired businesses.”

The Company has declared a fully franked interim dividend of 2.0 cents per share which is the same as the prior year.

For further information contact:

Mr Stephen Fewster Chief Financial Officer Southern Cross Electrical Engineering Limited + 61 (8) 9410 1833 www.scee.com.au

About Southern Cross Electrical Engineering

SXE was established in 1978 and together with its overseas group of companies, is a dedicated provider of large scale specialised electrical, control and instrumentation installation and testing services for major construction projects in Australia, and throughout the world.

SCEE is a quality endorsed company, with AS/NZS ISO 9001 accreditation and has a strong track record of safety and excellence that is recognised by numerous industry awards over the years. For further information on Southern Cross Electrical Engineering visit www.scee.com.au