Financial close achieved on Mitcham-Frankston Project

Issue Date:  22 November 2004
Issued By:  Leighton Holdings Limited

Company Announcements Office
The Australian Stock Exchange Limited
Level 4
20 Bridge Street
Sydney NSW 2000

Re: Financial close achieved on Mitcham-Frankston Project

Dear Sir,

Please find attached copies of media releases issued by the Victorian State Government and the ConnectEast Pty Ltd consortium.

The ConnectEast Pty Ltd consortium will design, construct, finance, operate and maintain the Mitcham-Frankston Project. Thiess, a wholly owned subsidiary of Leighton Holdings Limited and John Holland, a 70% owned subsidiary of Leighton Holdings Limited, are members of the ConnectEast Pty Ltd consortium and will undertake the $2.5 billion design and construction of the freeway in a 50:50 joint venture.

Yours sincerely,


A.J. MOIR
Company Secretary

Green Light for Start of Work on $2.5 billion Mitcham-Frankston Project

Issue Date: 19 November 2004
Issued by: Premier of Victoria

Transport Minister Peter Batchelor today announced that the State had reached financial close in its contract with ConnectEast, clearing the way for the start of major works on the $2.5 billion Mitcham Frankston Project.

Mr Batchelor said the retail float undertaken by ConnectEast to assist the funding of the Mitcham Frankston Project had been a huge success, with the company to list on the Australian Stock Exchange on 23 November.

“Financial close means all contractual and financial matters between the State and ConnectEast have now been finalised, clearing the way for major work to begin on this massive project early next year,” Mr Batchelor said.

“Victorians have waited for 30 years for this project to get off the ground, and achieving financial close with ConnectEast means the enormous task of getting this project completed in 2008 can start along the corridor immediately.”

Mr Batchelor also announced that Sinclair Knight Mertz had been appointed by SEITA and ConnectEast to the role of Independent Reviewer, with Peter Balfe heading the SKM team.

The Minister said the appointment of Mr Balfe, currently deputy chief executive officer of VicRoads with 40 years experience in construction and major project delivery, was a coup for the project.

The Independent Reviewer has a key role in the overview of the delivery of the project, including design, construction, commissioning and testing.  The Independent Reviewer will be responsible for the overview and checking of the design and construction works, and has the crucial task of the certification of completion of the works.

“The Independent Reviewer performs a key role in the delivery of the project, and the State is very pleased that Mr Balfe has been appointed to this crucial role,” Mr Batchelor said.

ConnectEast to List on ASX on November 23

Issue Date: 19 November 2004
Issued by: ConnectEast

ConnectEast Group said today it would list on the Australian Stock Exchange on November 23, having reached Financial Close yesterday with the State of Victoria.

ConnectEast will list at 11am on November 23 under the code CEUCA.

Transaction confirmation statements dispatched to investors earlier this week detailed their allocations of stapled units.

Applicants may confirm their allocations by telephoning the ConnectEast Offer Hotline on 1800 207 622.

Investors in the ConnectEast IPO are expected to receive an annualised tax deferred distribution yield that equates to 11.8% in the first year following allotment on an initial investment of $0.55.

Following payment of the $0.45 final instalment 12 months after allotment, investors in the IPO are expected to receive an ongoing tax deferred yield of 6.5% per year until March 2010, based on an issue price of $1.00. Distributions thereafter will reflect the operating performance of ConnectEast Group at that time.

The $1.1 billion ConnectEast initial public offer (IPO) closed over-subscribed on November 4.

ConnectEast Chairman and acting CEO, Mr Anthony Shepherd, said: Financial close represents the formal conclusion of a long process that underpins the establishment of a major new Australian company devoted to the development and operation of the nation’s biggest road infrastructure project.

“The strong demand for ConnectEast stock demonstrates that applicants were attracted to the unique opportunity to invest in a listed, single-purpose, greenfield tollroad vehicle with excellent yield characteristics and capital growth prospects.”

ConnectEast Group, supported by Macquarie Bank, Thiess and John Holland, has been awarded the 39-year concession by the State of Victoria to design, finance, construct and operate the Mitcham Frankston Project in Melbourne.

For further information contact:
Brett Wright,
General Manager,
Community and Public Affairs,
ConnectEast Group
Tel: 03 9635-8630 and 0410 636 434.