Media Release

27 February 2002

Another outstanding result for Toll

Toll Holdings, Australia's leading provider of integrated transportation and logistics services, today announced a 52% increase in earnings before interest and tax for the six months to 31 December 2001.

"This is yet another outstanding result for Toll and reflects strong organic growth across the business," Toll Managing Director, Mr Paul Little, said.

"The execution of major new contracts and the improving profitability of the Finemore businesses acquired less than 12 months ago have clearly boosted the current result and are underpinning future earnings growth.

"The recent successful bid for National Rail Corporation and FreightCorp (in partnership with Patrick Corporation) was another obvious highlight for the company. It positions Toll to offer Australian industry with a unique integrated logistics service and will provide the next generation of growth for the company," Mr Little said.

Revenue from operations in the six months grew strongly to $1.028 billion, an increase of 41%, reflecting the inclusion of acquisitions, as well as strong organic growth.

EBIT grew to $57.5 million compared to the previous corresponding period of $37.9 million, whilst profit after tax increased 45% from $27 million to $39.2 million.

Mr Little drew particular attention to the continued margin growth, with the EBIT margin of 5.6% representing an 8% increase.

"The improvement in EBIT margin reflects our focus on achieving cost efficiencies throughout the company, together with a targeted capital expenditure program, Mr Little said.

The record result was achieved in a very competitive industry environment and economic conditions have remained stable throughout most industry sectors.

The company declared a dividend of 18 cents, up from 15 cents in the previous period.

A statement on the half-year results is attached to this release.

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