As outlined in Downer’s update to the market on 26 March 2010 we confirm:

• Reliance Rail’s funding arrangements are on a non-recourse basis to Downer and the other Reliance Rail shareholders, and this continues to be the case;

• Downer is not obligated to provide further equity to Reliance Rail; and

• Any support Downer may choose to offer Reliance Rail would not be material to Downer.

Further, the speculation of such an equity raising related to Reliance Rail is inaccurate and there is no such mandate in place between Downer and any investment bank.