Coffey’s environmental business to grow with acquisition of CTL Environmental Services

Coffey will pay US$6.0 million (AUD$7.3 million) in cash and US$1.2 million (AUD$1.46 million) in shares and expects to complete the transaction within the next week.

The acquisition provides Coffey with the opportunity to enter a large, vibrant and diverse market for environmental and occupational health and safety services.

“The US market is often characterised by some large generalist engineering services companies but without many companies of Coffey’s size and specialist focus. Entering the market provides Coffey with a distinct and strategic opportunity to present our specialist value proposition to the US market,” managing director of Coffey International Limited Roger Olds said.

CTL Environmental Services will become part of Coffey Environments, which after the acquisition will be a 500-strong team of environmental engineering, sustainable engineering and health and safety specialists.

Peter Mirkov, Chief Operating Officer of Coffey Environments said: “CTL Environmental Services has a long and proven record of servicing the Californian market. Through access to the Coffey group of specialist companies, it will be able to expand and grow its business to deliver value to its existing and future clients.”

“By collaborating with other Coffey companies, we will be able to deliver exceptional projects and services to a wider range of clients. We are looking forward to growing the business to its full potential, operating across multiple states and regions delivering extraordinary outcomes in environmental, health and safety and sustainable engineering services,” Peter said.

CTL Environmental Services is based in Los Angeles, California. It earned revenue of more than US$5.8 million for the financial year ended 31 December 2006. The company has 47 employees, including Professional Engineers, Certified Industrial Hygienists, and other professional and scientific staff certified by State and national organizations in various environmental specialties. There are numerous staff who have spent more than ten years with CTL Environmental Services and who are in key operational roles. Whilst the founders will be retiring to become consultants to the business, these key experienced staff will now work with Coffey on a growth strategy for the business. All staff will be offered employment with Coffey.

Dr Stuart E. Salot founded CTL Environmental Services in 1978. Dr Salot said “CTL Environmental Services has expanded its range of consulting services to include activities dealing with asbestos, lead-based paint, radon, industrial hygiene, property assessments and remediation design and supervision, all of which are similar or complementary to Coffey Environments’ services. We are looking forward to working with Coffey, and are pleased to be passing our business into a company that will provide our staff with new and exciting opportunities.”

About Coffey International Limited

Coffey International Limited has a vision to improve the lives of world communities by providing both physical and social infrastructure solutions to business, government and development assistance agencies.

Coffey employs around 2,400 people in 109 countries and is one of Australia's largest international service providers.

Coffey International Limited is listed on the Australian Stock Exchange and is part of the S&P ASX 300 and small companies’ indices.

Visitwww.coffey.comfor more information about the Coffey group.

About Coffey Environments

Coffey Environments, a wholly owned subsidiary of Coffey International Limited, is one of the largest environmental services organisations in the southern hemisphere offering environmental engineering, sustainable engineering and workplace health and safety services.

About CTL Environmental Services

CTL Environmental Services is a Los Angeles-based environmental consulting firm founded by Dr Stuart E. Salot in 1978. It provides a wide range of services to residential, commercial, industrial and governmental clientele predominantly in California but also across the United States and the Caribbean. Services include consulting activities dealing with asbestos, lead-based paint, radon, industrial hygiene and property assessments for potential soil and water contaminants as well as remediation design and supervision.

Visitwww.ctles.comfor more information about CTL Environmental Services.

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Roger Olds and Peter Mirkov are available for interview. Company background and profile is also available.

For more information, please contact Brigitte Claney at Mendleson Communication on
(+61) (3) 9827 0422 or (+61) 412 189 558.