Profit Warning for the Third Quarter Ended 31 March 2008

25 April 2008

The Board of Directors of AusGroup Limited (the 'Company') would like to announce that the Group will report a loss for Q32008. This is primarily due to a provision made arising from uncertainties around the interpretation of the terms of a major contract being performed by a subsidiary in Australia. The Board is consulting its legal advisors on how best to resolve related contractual issues.

Michael Anthony Hardwick
Chief Financial Officer