ASX Announcement / Media Release 2 May 2008

SHAREHOLDER NEWSLETTER Construction services group Global Construction Services (ASX: GCS, “GCS Group”) pleased find attached 'GCS Inform' newsletter that will be mailed to shareholders today.

-ends- Further Information: Katherine Knox

Porter Novelli (08) 9386 1233

0421 186 129 Or visit: http://www.gcs-group.net/ About GCS Group GCS Group (ASX: GCS) is a construction services company that supplies equipment to the construction industry such as scaffolding, formwork, material hoists, temporary accommodation and chemical toilets together with a range of related labour and design services. The company’s major customers are involved in residential, commercial and industrial construction and include Multiplex, Mirvac and Leighton Holdings. GCS Group is forecasting net profit of $9.5 million for FY08, equating to 14.5 cents per share. GCS Group’s strategy for growth is to focus primarily on servicing the West Australian construction industry. In addition, the Company intends to explore opportunities to diversify into related industries and industry sectors and acquire selected new businesses that create value for shareholders.  F

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Welcome to our first client and shareholder newsletter which I hope will give you an informative insight into our operations.

Since listing on the ASX just over eight months ago, we have embarked on a significant growth path with the aim of consolidating our position in the construction services industry.

This strategy has seen GCS acquire four new businesses in the WA construction services sector and the opening of a business division in the North West.

Our acquisitions have been very successful and, as our half year results for the 2008 financial year show, they are already contributing to the Group’s earnings.

We will continue to evaluate further acquisitions over the coming year that are earnings accretive and have the ability to bring value to our business.

The move into the North West market was an important milestone for the Group, with a strong team now established. There are many contract opportunities in the pipeline and we expect to announce developments in the region in the coming months.

In early April, we were pleased to announce an upgrade to our profit guidance thanks to strong performances from all of our operating divisions. We are happy to say that we are now expecting a net profit for FY08 of $9.5 million, up $1.3 million from the 2007 prospectus forecast. This equates to earnings per share of 14.5 cents compared to the prospectus forecast 12.5 cents.

We are delighted with the investor support we have received since listing on the ASX and we hope that investors continue to see the strong fundamentals of our business and the significant upside potential as we continue to grow.

Thank you for your support for GCS and we look forward to keeping you updated with further developments through what promises to be a continued period of exciting growth and development in the Western Australian construction services sector.

» GCS grows in booming North WestGCS Group launched operations in the North West of Western Australia in January 2008 as part of the Company’s strategy of expanding its business into new markets.

The Karratha-based operation services a wide region throughout the Gascoyne, Kimberley and Pilbara regions. Geographically, GCS will service any area north of the 26th parallel up to the Northern Territory border.

Since commencing operations, interest in GCS Northwest has flourished and there is strong demand for our products and services. GCS currently has equipment going off-shore to service a large oil and gas company in the region.

In February 2008, GCS Northwest and local scaffolding group Pilbara Access Management Services formed an alliance to cross-sell their services and provide a comprehensive service for clients. Pilbara Access has had a presence in the region for over seven years. This alliance provides for labour, maintenance services (currently 60 scaffolders plus supervisors and management) and equipment across shared offices and yards in Newman and Karratha.

“The synergy created by the alliance enables a complete package that is attractive to clients in the region,” said Kieran Steadman, General Manager of GCS Northwest.

“We have the capacity to supply clients with adequate levels of equipment and labour to meet their ongoing demands which can be locally sourced from Karratha and Newman

with additional access to equipment from our Perth operations.

GCS Northwest is led by an experienced management team. Kieran Steadman has 23 years experience in the scaffolding and construction industry, which includes eight years in the Karratha region, where he built relationships with senior personnel from many of the major companies in the North West.

Steve Linton, Operations Manager of the North West office, has been in the scaffolding industry for 27 years, with vast experience in a range of projects in the mining and resources sectors in the north of Western Australia, particularly in Karratha over the last five years.

There is also a depth of knowledge and experience within the Group that GCS Northwest can access to manage workload, ranging from site superintendents through to construction and project managers.

The team at Karratha has a strong and dedicated commitment to providing a diverse range of products and services to their clients.

“Most importantly, the key to our success is service and a commitment in meeting agreed timelines between GCS and our client,” said Mr Steadman.

“Keeping the communications open and always being on-call in this seven day-24 hour working environment is paramount to our reputation and growth, within this demanding industry sector in Western Australia.”

Enzo GullottiManaging Director

N E W S L E T T E R | A p R I L 2 0 0 8

www.gcs-group.com.auFor all the latest GCS product and services available, please visit:

The GCS Northwest Team from left: Chris Matcott - Scaffold Supervisor, Stefan Golo - Yard Supervisor, Kieran Steadman - General Manager, Steve Linton - Operations Manager and Vikki Stanley - Office Administrator. (Absent - Kym Skurulis, Northwest Contracts Administrator)

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GCS announced the acquisition of temporary site accommodation provider Budget Portables in October 2007. The acquisition was the second purchase since GCS listed on the Australian Securities Exchange in August 2007.

The Budget Portables business has a strong and long-standing client base predominantly in the commercial construction industry, which has brought GCS a new and fresh clientele to cross-sell the suite of products and services within the Group.

GCS Group is pleased to welcome Peter Gelmi, as Divisional General Manager, Residential.

Mr Gelmi joins the Group to add value and further develop our residential scaffold division which incorporates scaffolding, chemical toilets and material hoists.

A major strength of the Budget Portables acquisition has been the retention of the core group of staff who have all remained with Budget to handle the integration of the business into the consolidated Group.

“Integration is still ongoing and we are making a number of valuable improvements such as implementing a fully automated hire system in line with other GCS Branches,” said GCS Managing Director Enzo Gullotti.

At present, this covers GCS Security Scaffolding in Wangara and Just Hire in Mandurah.

His appointment is part of GCS Group’s growth strategy targeting opportunities in the WA construction sector as well as exploring future opportunities in new markets.

Prior to joining GCS, Mr Gelmi was General Manager of the Complete Portables Group of Companies involved with the hire, sale and manufacturing of transportable buildings and associated amenities. Before this, he managed five business units – industrial, marine, automotive, mining and power generation for Cummins Inc.

“Demand for Budget’s products and services remains high and utilisation is at peak capacity. We are continuing to invest additional capital into expanding the fleet of units to manage the demand across the Perth metropolitan area.”

The Budget Portables brand name is synonymous with the construction industry and GCS Group will continue to leverage this first-rate reputation and utilise the well-known brand in the market place.

Mr Gelmi has more than 20 years experience in hire, sales, manufacturing and service industries encompassing residential, commercial and resource markets in WA and nationally.

» Budget acquisition pays off for GCS

» New General Manager - peter Gelmi

Wellington Central Project, Wellington Street, Perth - Doric Constructions

Capital Square Project, Mounts Bay Road, Perth - John Holland Constructions

Ear Eye & Nose Institute Redevelopment project - BGC Constructions.

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GCS Group, through its subsidiary CASC Constructions, is playing a key role in the construction of one of Western Australia’s major development projects, Century City.

The $300 million project – situated at 100 St George’s Terrace – is considered to be one of Perth’s premier retail/office projects.

For the Century City project, CASC has operated as a sub-contractor to Brookfield Multiplex Constructions, providing the installation and dismantling of all associated formwork for the building’s construction over the term of the project.

The Century City project is due for completion in February 2009 with National Australia Bank confirmed as anchor tenant for the building.

It will be the first building in Perth to have a 4.5 star Australian Building Greenhouse Rating (ABGR) and will capitalise on the significant advances in security, communications and remote technology that have evolved since Perth’s last office towers were completed.

Another of CASC’s major projects, The Claremont Quarter is running concurrently with the Century City Project.

A quick look at the Perth skyline is enough to tell you that times are good in the WA construction industry - and this is very good news for GCS Group.

A strong economy, driven by rapid population and employment growth is boosting building activity, with commercial and residential building starts forecast to rise in 2007-08 according to analyst BIS Shrapnel.

In the city, office space is extremely tight. The official vacancy rate in the CBD has forcast to 0.5 per cent and in nearby suburb West Perth the rate is now at zero.

To meet the surging demand, a number of commercial property developments are proposed

The Claremont Quarter is a joint venture re-development project between Brookfield Multiplex Constructions and Hawaiian that will transform the existing shopping district into a mixed-use residential and retail complex. Located in the affluent western suburbs of Perth, the project will be one of Perth’s most exclusive retail and residential developments.

Acting again as sub-contractor to Brookfield Multiplex Constructions, CASC is contracted to provide the supply of all formwork and concrete. In addition to this, GCS Rapid Access is contracted to supply all scaffolding and material hoists over the entire duration of the project.

CASC started work on site in April 2007 with Stage One of their contract due for completion in October 2008. Stage Two of the project for CASC is due to commence in May 2009 and is scheduled for completion in November 2010.

CASC Constructions was acquired by GCS Group in May 2007. The business - which now operates as a subsidiary to the broader Group - provides formwork and related labour services to large construction companies undertaking major construction projects.

and building sites can be found on most inner -city streets.

However, it’s not just the commercial sector that is taking off. Western Australia’s population growth has also led to major housing shortages and numerous residential projects are in development.

According to analyst BIS Shrapnel, building commencement rates in the residential sector are defying recent interest rate rises.

While traditionally the Reserve Bank lifts interest rates to cool housing activities, analysts say that in this cycle building commencements would continue to rise in the 2008-09 financial year.

GCS Group’s GM residential division Peter Gelmi said GCS was enjoying the strong trading

While revenue for the Group’s traditional commercial construction sector business is typically earned from medium term contracts (generally 6-12 months), the agreements that CASC enters into are long-term, high value, fixed price contracts.

GCS Group Managing Director Enzo Gullotti said the CASC business represents approximately 40 per cent of FY2008 forecast revenue.

“The CASC side of the business is very important in that it locks in long term recurring revenue for the Group,” said Mr Gullotti.

“We have been very happy to be involved in some major projects in the past and we are hopeful that we will be able to leverage our experience in those contracts to secure similar work in the near future.”

conditions in both the commercial and residential construction industry.

“We are enjoying a very steady level of work in the residential side of the business and expect that to continue at least for the next few years,” said Mr Gelmi.

“Obviously GCS has great exposure to the commercial side of the construction industry - particularly through CASC and GCS Rapid Access - but the residential side also makes a significant contribution to the business,” he said.

“It is the diversification that puts us in a perfect position for capturing the opportunities arising from WA’s continued economic growth.”

» CASC to deliver major WA contracts

» perth construction industry outlook buoyant - great news for GCS

Century City Project in the heart of the city at 100 St Georges Terrace, Perth

Claremont Quarter JV Redevelopment Project - providing exclusive retail and residential development

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» HSEQ ManagerGCS Group is pleased to announce that Paul Isaac has been promoted to the position of Health, Safety, Environment and Quality (HSEQ) Manager. In this role, Mr Issac will assist the Group in working towards accreditation in Quality Business Management Systems to ISO 9001.

The Quality Management System has received widespread international recognition and offers a comprehensive framework on which to further build GCS Group systems and disciplines to ensure key business objectives are achieved.

The management system will be integrated as one discipline and will provide a stable platform from which improvement initiatives will be launched. The system will address health, safety, environment and quality and provide a mechanism for continuous improvement across all business processes.

“Our management system certification will continue to strengthen our commitment to our customers to meet their expectations of quality, service and delivery,” said Paul Isaac.

“GCS Group is currently seeking certification in Safety Management Systems to Australian Standards 4801. The Group is also working towards Chain of Custody Certification for specific timber and plywood products as part of a Forestry Stewardship Council Initiative to enable GCS to be a retailer of specific eco-friendly products, allowing further expansion of its market initially within the State and nationally.”

Mr Isaac was previously employed by Construction Sales & Hire Pty Ltd and has been with GCS since the acquisition of the CSH business in July 2004. His role has developed from design, estimating and drafting to Group Operations and now HSEQ Manager. Paul continues to further his studies and is completing Certificate IV in OS & H.

» GCS on course for major growth in 2009With Australia’s top economic forecasters predicting that the WA boom will last for at least the next few years, the key to success for companies in the construction sector is to ensure they are well-positioned to take advantage of that growth.

This has been the focus of GCS Group. Since listing on the ASX late last year, the Group has concentrated on establishing a strong position in its key markets: the residential, commercial and industrial segments of the construction industry.

This strategy is already paying dividends. In early April 2008, the company revised its profit guidance for the 2008 financial year thanks to strong performances from all divisions, including growth from the company’s recent acquisitions in the construction services sector.

GCS is now expecting a net profit for FY08 of $9.5 million, $1.3 million higher than its 2007 prospectus forecast of $8.2 million. The Group expects this growth to continue through to 2009 and beyond.

According to GCS Managing Director Enzo Gullotti, the plan moving forward is to continue to build on its position in its target markets both organically and through further acquisitions.

“The key to our success to date has been our ability to identify, acquire and integrate suitable businesses that fit with our existing operations and bring value to the Group,” said Mr Gullotti.

“We have been very selective in our approach, and the result has paid dividends with all four businesses making a valuable contribution to the Group.

“Thanks to the contribution of both our new and existing businesses, we have a strong pipeline of projects and tender opportunities. This is in addition to our long-term recurring projects in place which ensure a large portion of our revenue is locked in.”

Mr Gullotti added that acquisitions will remain an important part of the company’s strategy going forward, with the market presenting a range of potential acquisition opportunities.

“The construction services industry is highly fragmented, with numerous small operators specialising in particular products and services or geographical regions,” said Mr Gullotti.

“We believe that a number of potential opportunities remain – both in Western Australia and interstate – and we will be diligently reviewing those opportunities on an ongoing basis.

“We hope to announce further good news in the months ahead.”

For further information, contact us:

Cement pour by Newave Contracting at Claremont Quarter Redevelopment Project.

Hollywood Exclusive Unit development - Mirvac. Scaffolding, material hoists, chemical toilets and temporary site accommodation supplied by GCS Rapid Access for the duration of the project.

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