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Downer Statement on Waratah Trains

Date: 3/11/2010

Following the statement issued this afternoon by NSW Minister for Transport John Robertson, Downer EDI Limited (Downer) confirmed that, based on the current schedule, the first eight car Waratah train set will be ready for acceptance by RailCorp before the end of December.

The Chief Executive Officer of Downer, Grant Fenn, reiterated the statements he made at this morning's Annual General Meeting.

"The timetable is tight, but it is achievable if testing continues to go well," Mr Fenn said.

"Testing of the Prototype Vehicle has been very successful and so has testing of train set number one and train set number two. Train set number three, which will be the first train into service, has begun static testing and will start dynamic testing on the tracks this month.

"By mid to late December, the Waratah fleet will have travelled over 35,000 kilometres on the Sydney network.

"Downer has an industry-leading safety record and safety is embedded in Downer's culture. We are building an exceptional train for the people of New South Wales, and it will be safe and reliable.

“Under the current schedule, the first Waratah train will be ready for acceptance by RailCorp by the end of December and, under the contract, the timing of the entry into service will be determined by RailCorp."

Mr Fenn said at this morning’s Annual General Meeting that if RailCorp does not accept the first train for Practical Completion by the end of December then Downer will incur liquidated damages of approximately $250,000 per train per month of delay. Downer does not expect the possible delay of set one into revenue service to materially impact the schedule for the remaining 77 train sets.

CONTACT DETAILS

Investors: Ross Moffat, Executive General Manager Investor Relations T: +61 412 256 224

Media: Michael Sharp T: +61 439 470 145

Downer EDI Limited (www.downergroup.com) is a major ASX listed company that provides comprehensive engineering and infrastructure management services to the public and private transport, energy, infrastructure, communications and resources sectors across Australia, New Zealand, the Asia Pacific region and the United Kingdom.