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AEC Board Rejects CPB Revised Offer

Ammtec Limited (“Ammtec” or the “Company”) announces that its Board of Directors unanimously recommends that its shareholders REJECT the revised offer for their shares from Campbell Brothers Limited (“Campbell Brothers”). Ammtec shareholders are advised to TAKE NO ACTION in relation to the revised offer and to ignore any correspondence or telephone calls received from Campbell Brothers and its agents. On 30 August 2010, Campbell Brothers announced that it had increased its cash offer from $3.35 per share to $3.80 per share and marginally increased its alternative all share offer from 2 Campbell Brothers shares for every 17 Ammtec shares to a new ratio of 4 Campbell Brothers shares for every 33 Ammtec shares (“Revised Offer”). Ammtec’s Directors believe the Revised Offer: Represents an increase of just 3% on the all share component of the offer (calculated as 1-for-8.5 in the original offer compared to 1-for-8.25 currently); Increases the cash component of the offer by just 4% compared to where the market was already valuing the all share alternative from the original offer;1 Is not materially different from what was already on offer, which has been roundly rejected by Ammtec shareholders to date. As at 30 August 2010, only 1.1% of Ammtec shareholders have accepted the offer since it opened; Continues to materially undervalue Ammtec’s shares and, in particular, ignores the very strong earnings outlook for the Company in FY2011; Does not reflect the strategic value of Ammtec to Campbell Brothers; and Continues to be highly dilutive for earnings and grossed up dividends per share for Ammtec shareholders who accept the all share offer. The Directors also note that Campbell Brothers’ current stated position in relation to Ammtec’s FY2010 final dividend would prevent Ammtec shareholders who wish to accept the Revised Offer from receiving this dividend. In particular, if shareholders accept the Revised Offer prior to the current closing date, they will face missing out on the dividend. If they wait until after the record date of 15 October 2010 (assuming the Revised Offer is extended beyond this date), then Campbell Brothers’ current stated position is that it will lower its offer price accordingly. Ammtec Chairman David Macoboy said the fact Campbell Brothers had not sought a recommendation from the Board of Ammtec on the Revised Offer demonstrated that it clearly understood that it would fall short of what would be required to succeed. “Campbell Brothers did not approach the Ammtec Board seeking our support and recommendation because it knew the Revised Offer was not going to be seen as appropriate value for shareholders,” said Mr Macoboy. “Instead, Campbell Brothers is flagging a new strategy, indicating it will drop its offer conditions on securing just 30% acceptances, and seeking to influence or control Ammtec from a minority position.” Mr Macoboy said the Ammtec Directors continued to believe the Company was worth more to Campbell Brothers than reflected in the Revised Offer, given that: Campbell Brothers’ own trading multiples are well above the multiple implied for Ammtec by the Revised Offer; There is significant potential for Campbell Brothers to realise cost and revenue synergies from owning Ammtec; and There are excess franking credits available to Campbell Brothers if it was to gain control of Ammtec. “Campbell Brothers is offering to pay a price-to-earnings multiple of 10.8 - 12.5 times Ammtec’s FY2011 guidance on net profit after tax,” he said. “These earnings are likely to be valued immediately at Campbell Brothers’ own FY2011 earnings multiple of 16.6 times forecast earnings2 if Campbell Brothers secures control of Ammtec. “Ammtec shareholders are entitled to demand a higher share of these benefits.” “Campbell Brothers also continues to speculate that our FY2011 earnings will fall below guidance, despite the fact that its own guidance for the first half of FY2011 indicates a similar earnings uplift during this period. Ammtec’s Directors are confident the Company will meet its guidance and will provide updates to shareholders at appropriate times. “After the first two months of the financial year, Ammtec’s activity levels are at record levels and we continue to see a very strong pipeline of new contract opportunities over and above that factored in to our FY2011 earnings guidance.” Ammtec will release a formal Supplementary Target’s Statement to shareholders, which will explain the Board’s reasons for recommending that shareholders REJECT the Revised Offer in more detail, within the next week