September 13, 2006

Deutsche Bank initiates coverage of Emeco Holdings

Deutsche Bank has initiated coverage of Emeco Holdings (ASX: EHL), following its recent initial public offering, with a Buy rating.

Emerging Companies analyst, Neil Watson initiated coverage with a $2.15 price target.

Mr Watson said “Emeco offers exposure to one of the key global growth engines, the mining industry, through the hire of earthmoving plant and equipment to that sector."

“The company is benefiting from a number of structural and cyclical dynamics - the strongest, being the on-going strength of the resources sector globally. Buoyant commodity prices are leading miners to accelerate production and source incremental fleet from external providers.

”Emeco offers the highest growth profile of listed global specialist or generalist hire businesses, yet is not priced accordingly, and at an intermediate level between domestic players Coates Hire and Boom Logistics”, he noted.

Emeco’s value proposition is focused on providing plant and equipment to customers (mine operator owners or contractors) who prefer to externally source some or all of their fleet requirements rather than buying new or used equipment.

Approximately 15% of material moved in Australia is estimated by Deutsche Bank to be moved by equipment on-hire, with Emeco holding ~30% market share, and Coates Hires’ Allied Equipment business the next largest player with around 10% share. In Indonesia, the disparity is more pronounced, with Emeco having a 55% market share.

Equity rating recommendations are based on expected total return (including dividends):

• Buy: 10% or more over a 12-month period
• Hold: between -10% and 10% over a 12-month period
• Sell: -10% or worse over a 12-month period

For further information, please call:

Cathy Knezevic +61 2 8258 2792 or Kate Abrahams +61 2 8258 2416

Deutsche Bank

Deutsche Bank is a leading global investment bank with a strong and profitable private clients franchise. A leader in Germany and Europe, the bank is continuously growing in North America, Asia and key emerging markets. With Euro 1,058 billion in assets and 65,435 employees in 73 countries, Deutsche Bank offers unparalleled financial services throughout the world. The bank competes to be the leading global provider of financial solutions for demanding clients creating exceptional value for its shareholders and people.