land,s contract in washington, page-3

ERG Limited today announced that the reconstruction of its shares,
which has taken place over the past six months, is now completed. The
conversion of all listed notes into ordinary shares and the ten for
one share consolidation have occurred.

The shares will be trading under the ASX code ERGDA until close of
trading on 7 July 2003, reverting to the ASX code ERG at the start of
trading on 8 July 2003.

The Directors have also resolved not to proceed with the rights issue
to raise $50 million following finalisation of the Proton World sale,
which realised e37 million for the Group, and in view of the status
of negotiations on restructuring the Rome project. Directors
indicated at the time of the last shareholder meeting that the rights
issue may not proceed. The underwriters to the issue have been
released from their underwriting obligations.

The Group also announced (refer to separate media release) that the
contract in Washington DC has now been finalised and signed by both
ERG and the customer.

Work on all other projects awarded to the Group over the past six
months including Sydney, Seattle, Stockholm and Las Vegas, is under
way.

BACKGROUND INFORMATION