state infrastructure booming, page-3

NHR is now poised to cash in,capitalize and leverage off their prized assets,skills and knowledge on the strong demand for equipment hire as a result of the commitments to infrastructure spend outlined in 2006 Fed Govt budget,all State Govt budgets and the AH plant acquisition completed 1/06 by NHR

AH plant is a sustainable solid 'cash cow' operation generating 'approximately' $20m cash flow,$60m sales and $5m npat

Existing strong market position of the rental fleet has been upgraded and revitalized(by the previous owners NLX)to service the pent up bouyant infrastructure demand spend and take adavantage of the new growth opportunities as the cycle progresses

Capex on fleet will see a reduction on maintenance costs and the cost base

Accordingly,improved margins are most likely to occur as a result of reduced costs,rationalization of some industry equipment hire operators,changes to depreciation rules as outlined in the 2006 Fed Govt budget,appropriate bolt on acquisitions(ie. kennards hire),winning new tenders and new business

AH plant provides rental equipment to a broad range of customers with a emphasis/focus on infrastructure,construction and traffic management in the civil and road construction markets

AH plant division of NHR continues to be mangaed by Mr David Issacs,ex MD Wreckair(purchased by COA in 12/01)