fy ye 30th june 2007 npat

Any release to mkt below previous guidance 7/6/07 (ie $106m) might see a sharp decline in current share price and that eventually paid by the succesful bidder(s) for all of COA

***'7 June 2007'*** - Media Release Coates Hire Limited Announcement on Operating NPAT Coates Hire Limited (“Coates”) today announced that Operating NPAT (excluding significant one-off Project 64 and strategic review costs) for the current financial year was likely to be below the lower end guidance of $106m given to the market on 19 February 2007.

Although the variance is likely to be less than 5%, the Board considered it prudent to inform the market in light of the strategic review announced on 2 May 2007. It should be noted that Operating NPAT is still expected to be ahead of prior year by at least 7.5%.

Total investment for FY06/07, estimated in February to be approximately $400m, will now be lower at approximately $365m. Reported NPAT for FY06/07 will be negatively impacted by $8.4m for one-off Project 64 costs ($10m pre-tax), announced on 19 February 2007, and by $1.7m for strategic review costs ($2.5m pre-tax).