Economic Outlook Recent global economic developments are expected affect to our domestic market through two main channels

Economic Outlook - Recent global economic developments are expected affect to our domestic market through two main channels.

• Economic Outlook - Recent global economic developments are expected affect to our domestic market through two main channels.

• The fall in the stock market will significantly reduce household wealth which dampens household spending and consumer confidence.

• The unwinding of the boom in commodity prices which boosted incomes and demand over the past 5 years will result in the scaling back of mining related investment. A number of resource companies have already reviewed their capital expenditure for 2009, the smaller mining firms are likely to cut back their investment. Reduced spending in the resources sector would flow into slower activity in the other sectors of the economy.

The Economic Crash - Access to Finance

• The Economic Crash - Access to Finance

• Equipment purchasers will find it harder to obtain finance of new equipment

• Smaller contractors will feel it more therefore we expect sales of lower to mid range equipment to drop

• Mining will be solid as major mining houses still have access to finance

• Most other industries we report on are experiencing the similar drops in Quarter 4 2008

Construction equipment sales had undergone massive growth since 2001

• Construction equipment sales had undergone massive growth since 2001

• 2009 sales expected to be lower largely due to the economic environment