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

Dear Sir

Broad Construction Services (Broad) and Leighton Contractors today announced that they have entered into an agreement to join forces to maximise their strength in the small to medium size building market throughout Australia.

As one of Australia's fastest growing construction companies, Broad has a $100 million turnover (year end 30 June 2002) and offices in Perth, Adelaide, Brisbane and the Gold Coast. During the past ten years, Broad has completed over 170 building projects with a total value of $450 million.

Under the terms of the agreement which, subject to due diligence, is expected to be finalised by the end of July 2002, Mr Kari Rummukainen and his partners will reduce their equity to 30 per cent by selling 70% of Broad to Leighton Contractors Pty Ltd. Mr Kari Rummukainen will remain as Managing Director of Broad.

"Broad is currently one of Western Australia’s major building contractors in the commercial construction market and being part of the Leighton Group means we can progress our expansion plan by competing for more diverse projects across Australia," said Mr Kari Rummukainen. 

Broad’s clients include Harvey Norman Holdings, Westralia Airports Corporation, Curtin University of Technology, and Caversham Properties (subsidiary of Futuris Corp), as well as a range of private developers.

“We remain fully committed to providing a full range of construction and development services and ensuring that Broad’s clients continue to receive the excellent level of service that has become synonymous with Broad,” added Mr Kari Rummukainen.

Managing Director of Leighton Contractors, Mr Bob Merkenhof said, “Our decision to join with Broad provides an excellent opportunity to build on the good reputation and track record of Broad, and to expand into the low to medium size building market throughout Australia”.

Leighton Contractors Director and General Manager for WA, Mr Peter McMorrow said, “Broad will be an excellent fit with Leighton offering a high level of professionalism and technical skills, and a strong brand name in the Australian market place. I’m confident this will be a mutually beneficial arrangement for both Broad and Leighton.”

The Company will continue to trade as Broad, operating independently, and providing an entry in the small to medium size building market in Queensland, Victoria, South Australia, and New South Wales.

Broad and Leighton Contractors are currently joint venture partners in Victoria and South Australia and have been shortlisted as one of three companies to tender for the prestigious Commonwealth Law Courts project in Adelaide.

Leighton Contractors is an Australian market leader in the delivery of complex infrastructure, project development, contract mining and building construction. The company currently has in excess of $1.2 billion worth of work in hand and employs approximately 1,800 people. It is a part of the Leighton Group, Australia’s largest project development and contracting group.

-end-

For further information, contact:
Mr Kari Rummukainen