AUSTAL WINS $18 MILLION SUSTAINMENT CONTRACT FOR RAN CAPE CLASS PATROL BOATS

COMPANY ANNOUNCEMENT

3 OCTOBER 2017

Austal (ASX:ASB) today announced the Royal Australian Navy (RAN) has awarded a sustainment contract worth up to $18 million over three years for the Cape-class Patrol Boats, Cape Fourcroy and Cape Inscription. This contract will employ eight directly and 20 indirectly in local contractors and Austal’s own facilities in the Cairns area. The sustainment work will be in addition to the work undertaken by Austal for the Australian Border Force and will utilise much of the same experience and capabilities.

Austal’s 58 metre Cape-class Patrol Boat was specially designed and built to meet the unique border protection and maritime security requirements of the Australian Border Force and Royal Australian Navy.

“We are very pleased to have received this vote of confidence from the Royal Australian Navy. We have invested heavily in people, software tools and our facilities in Cairns, Darwin and Henderson in recent years to develop the capability to deliver this service” Austal CEO, David Singleton said.

“The deployment of Austal’s patrol boats by the Commonwealth will allow export opportunities for Australia by effectively showcasing the vessel with a world class Navy. Austal is constantly pursuing opportunities for the Cape-class Patrol Boats and Pacific Patrol Boats to potential overseas customers” Mr Singleton said.

“Exports derived from defence programs, like Cape, highlight the potential ‘multiplier effect’ on local job creation, where Australian suppliers are engaged to deliver both domestic and international contracts,” he said.

“Every program we deliver creates both direct and indirect jobs right across the country.

“Austal has always operated with an export focus, and four out of every five ships we build are for the international market.

Austal is currently partnered with Fassmer, bidding for the $3 billion Offshore Patrol Vessel Project and has also signed a teaming agreement with ASC Shipbuilding to offer a local Australian shipbuilding solution for the $35 billion Future Frigate Project.

About Austal

Austal is the Australian shipbuilder, global defence prime contractor and maritime technology partner of choice, designing, constructing and sustaining the world’s most advanced commercial and defence vessels.

As the only shipbuilder in the world that successfully balances commercial and defence projects, Austal celebrates 30 years of success in 2018, and has delivered and continues to construct more than 300 commercial and defence vessels for more than 100 operators in 54 countries worldwide.

Austal is Australia’s largest defence exporter and only ASX-listed shipbuilder, with industry leading shipyards in Australia, the United States of America and Philippines – and service centres worldwide.

Delivering iconic monohull, catamaran and trimaran commercial vessel platforms – including the world’s largest trimaran ferry and multiple defence programs such as the Littoral Combat Ship (LCS) and Expeditionary Fast Transport (EPF) for the United States Navy - Austal has grown to become the world’s largest aluminium shipbuilder.

With relentless determination, Austal continues to pursue and win commercial and defence projects throughout the world, playing a leadership role in developing Australia’s sovereign shipbuilding capability.

Further Information

Contact: Gemma Whiting - Government Relations Manager

Mobile: +61 (0)408 982 726

Email: gemma.whiting@austal.com

Website: www.austal.com