TRANSFIELD SERVICES COMMENCES EXCLUSIVE NEGOTIATIONS FOR ALBERTA OIL SANDS CONTRACT WORTH IN EXCESS OF ONE BILLION DOLLARS

6 February 2007

Flint Transfield Services today announced it was the preferred tenderer to enter into exclusive negotiations for asset management services worth in excess of C$1 billion ($A1.1bn) over five years with leading Canadian petroleum producer, Suncor Energy.

Flint Transfield Services, a Transfield Services 50/50 subsidiary with Canadian based Flint Energy Services Ltd., was formed in August 2006 to capture growing asset management and maintenance opportunities in the fast growing Canadian oil sands industry. Canada has the second largest oil reserves in the world after Saudi Arabia.

The North American energy market is expanding rapidly, with investment in Alberta's oil sands industry expected to total in excess of C$100 billion over the next ten years. Suncor alone plans to approximately double its current production capacity at its Alberta oil sands facility near Fort McMurray, Canada up to 550,000 barrels per day in 2012.

Contract negotiations with Suncor are expected to be concluded by the end of first quarter in 2007 and pending agreement, service delivery is expected to commence at Suncor's Fort McMurray operations in the third quarter of 2007 and at the company's Sarnia, Ontario refinery, by the first quarter of 2008, following a carefully managed transition focused on ensuring safety and plant reliability at Suncor's facilities.

Managing Director and Chief Executive Officer of Transfield Services, Mr Peter Watson, said today: "Flint Transfield Services' proposal succeeded because of our strong track record in delivering world's best practice safety, shutdown, asset management and maintenance services that achieve significantly improved results for our clients, partnered with Flint's strong hydrocarbons market presence in North America.

"This success in taking Transfield Services' significant hydrocarbons industry expertise to the burgeoning North American market is a key milestone in delivering our international growth strategy, led by Joseph Sadatmehr," he said.

Transfield Services' CEO International, Mining Process and Hydrocarbons, Mr Joseph Sadatmehr, said the team would "work with Suncor to achieve their current improvement and growth plans by working within a new dynamic collaborative working arrangement."

President and CEO of Flint Energy Services, Mr Bill Lingard, said today's success demonstrated "the significant opportunities that could be won by combining Flint's deep relationships and strong operational footprint in North America with Transfield Services' global experience and reputation in providing asset management services."

President and CEO Flint Transfield Services, Mr Andy Mackintosh, said: "Flint Transfield Services' collaborative contracting approach will be a key factor in delivering significant business improvements to Suncor. This five year performance based rolling contract will demonstrate a strong, shared commitment to delivering sustainable improvements across Suncor's businesses well into the future."

Once the contract agreement is reached, Flint Transfield Services will, through its entities, provide asset management services including:

• Turnaround and shutdown services for Suncor's Fort McMurray oil sands operation and the Sarnia refinery
• Site wide maintenance support services at Suncor's oil sands operation
• Contract maintenance services to the Sarnia refinery and the Fort McMurray oil sands facility extraction and upgrading facility
• Engineering, project management and construction services for select sustaining capital projects.

Flint Transfield Services also acknowledges its key partners; Calgary based Colt Engineering Corporation and ThyssenKrupp Safway, Inc. who will make a significant contribution to the successful delivery of the asset management services to Suncor.

This strategic win continues the successful execution of Transfield Services' international growth strategy, following the July 2006 acquisition of US Maintenance, a leading provider of outsourced facilities management services covering 50 US States.

BACKGROUND

Transfield Services is a leading global provider of operations, maintenance, asset and project management services. In addition, it owns, operates and maintains major infrastructure assets. Transfield Services has more than 18,000 employees working across Australia, New Zealand, the United States, the United Arab Emirates, Qatar, South East Asia, India and Canada. The Company operates across diverse industries including: mining and process; hydrocarbons (working with Caltex and ExxonMobil in Australia, Shell across Australia, New Zealand and Malaysia and with RasGas in the Gulf Region); roads; rail and public transport; water; power; telecommunications; facilities management; and defence. Transfield Services Limited is publicly listed in Australia and included in the S&P/ASX 200 with a turnover of more than A$2 billion. www.transfieldservices.com

Flint Transfield Services is a joint venture between Transfield Services and Flint Energy. It was formed in September 2006 to capture growing asset management and maintenance opportunities in the North American oil sands industry. The joint venture and its operating entities brings Transfield Services' leading experience in asset management and maintenance of complex systems and technologies together with Flint's extensive North American hydrocarbons expertise.

Flint Energy Services Ltd. provides a full range of integrated midstream services including construction of oil sands infrastructure, field production services, oil field transportation, process equipment manufacturing, and tubular management for the oil and gas industry. Flint's operations span the oil and gas producing areas of western North America, from Inuvik in the North West Territories to Mission, Texas on the Mexican border, and are offered through over 60 strategic locations. Flint Energy Services Ltd. is a publicly traded company listed on the Toronto Stock Exchange under the symbol "FES". www.flintenergy.com

Suncor Energy Inc. is a growing, integrated energy company, strategically focused on developing one of the world's largest petroleum resource basins – Canada's Athabasca oil sands. http://www.suncor.com/start.aspx