Capital Reduction Exercise by a Subsidiary

22 April 2010

The Board of Directors of AusGroup Limited (the “Company”) wish to announce that the Company’s wholly-owned subsidiary, AGL Cactus Pte. Ltd. (“AGL Cactus”) has on 21 April 2010 reduced its share capital by cancelling part of its issued and paid-up share capital amounting to SGD7,659,575, being the share capital which was in excess of the wants and needs of AGL Cactus and cancelling 7,659,575 ordinary shares.

Pursuant to the reduction of share capital, the issued and paid-up share capital of AGL Cactus was reduced from SGD7,659,576 to SGD1 and the sum of SGD7,659,575 arising from the reduction was returned to the Company.

The reduction of share capital of AGL Cactus is not expected to have a material impact on the net tangible assets and earnings per share of the Company for the financial year ending 30 June 2010.