Transfield Services today announced that its joint venture, TransdevTSL, was not selected as preferred tenderer for Melbourne’s Yarra Trams franchise.

TransdevTSL is a 50:50 joint venture between Transfield Services and leading French tram operator Transdev. The contract represented annualised EBITA for Transfield Services of approximately $8m (5% of FY08 EBITA). This will not have an impact until the 2010 calendar year and we are confident of the strength of our business going forward.

We are proud of the significant improvements we have delivered since TransdevTSL commenced operating Melbourne’s entire tram network in April 2004, including:

• Unprecedented patronage growth, including a 15.2 per cent increase in the 12 months to March 2009
• Significant improvements in punctuality and service delivery, despite growing congestion
• A positive track record in safety, making Yarra Trams one of the safest networks in the world, with a 27 per cent reduction in collisions involving trams, a 31 per cent decrease in passenger falls and for Yarra Trams staff, a dramatic reduction the lost time injury rate from 40.3 injuries per million hours worked to 5.5
• No hours lost to industrial disputes
• Emergency assistance response, including hundreds of additional services following emergencies such as the tragic accident in the Burnley Tunnel and train braking problems
• A 10 per cent reduction in fare evasion, with fare evasion reduced from 20 per cent in 2005 to 10 per cent in 2008
• Construction of a state-of-the-art Fleet Operations Centre in South Melbourne
• An expanded project delivery group to deliver tram related works such as the highly successful, accessible tram stop program
• Significant information technology developments such as tramTRACKER®
• new “Bumblebee” trams – enhancing our overall knowledge and capability in the introduction of a modern fleet
• Apprenticeship program and succession planning
• A contribution to a more sustainable Melbourne, with innovative programs such as the greendepot® project and the wind trams
• Partnering closely with Government to deliver safe, efficient and reliable major event transportation services, including major sporting events, such as the Australian Open Tennis, AFL, rugby and soccer matches and the Commonwealth Games in 2006
• A customer satisfaction index consistently well above industry average throughout the period

Media Enquiries

Liz Jurman
Group General Manager Corporate Affairs
Ph +61 2 9464 1615
Mb +61 438 399 435

Investor Enquiries

David Slack-Smith
General Manager Investor Relations
Ph +61 2 9464 1019
Mb +61 403 289 130

Transfield Services delivers essential services to key industries in the resources and industrial, property and infrastructure sectors. A leading global provider of operations, maintenance, and asset and project management services, Transfield Services has more than 29,000 employees in Australia, New Zealand, the United States, the United Arab Emirates, Qatar, New Caledonia, South East Asia, India, Chile and Canada. Transfield Services Limited is publicly listed in Australia. www.transfieldservices.com