Unaudited results for the third quarter and nine months ended 31 January 2008

Financial summary

<sup>1. Basis of preparation
The condensed financial statements for the nine months ended 31 January 2008 were approved by the directors on 3 March 2008. They have been prepared in accordance with International Financial Reporting Standards ('IFRS') (including International Accounting Standard (IAS) 34, Interim Financial Reporting) and the accounting policies set out in the Group's Annual Report and Accounts for the year ended 30 April 2007. They are unaudited and do not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985.

The statutory accounts for the year ended 30 April 2007 were prepared in accordance with relevant IFRS and have been mailed to shareholders and filed with the Registrar of Companies. The auditors' report on those accounts was unqualified and did not contain a statement under section 237 of the Companies Act 1985.

The exchange rates used in respect of the US dollar are:</sup>

Highlights

• Strong performance continues at all three divisions
  • 25% growth in Sunbelt's year to date underlying profit
  • 49% growth in A-Plant's year to date underlying profit
• Market conditions remain good in the US and UK
  • utilisation rates improved over the equivalent period last year
  • fleet age and mix at optimum levels
  • business model has flexibility to react quickly and effectively to change
• 5% share buy-back progressing well
  • 4.2% purchased to date at a cost of £18.1m (77p per share)

Ashtead’s Chief Executive, Geoff Drabble , commented:

Our three divisions have all continued to perform well in the third quarter. In the US, where our principal markets remain strong, we again increased margins as we continue to drive efficiencies from the enlarged Sunbelt business. At A-Plant the 49% growth in its year to date operating profit is a clear indication of the momentum this business has developed and its good position in the UK market.

Despite the economic uncertainty, our markets in the US and the UK remain good and our experience on the ground suggests that this will continue for the foreseeable future. In the event of changing markets, we have a flexible business model that is able to respond quickly and effectively to market conditions. The Board remains confident in the Group's prospects for the full year and beyond.

Contacts:

Explanatory Notes

• Underlying profit and earnings per share are stated before exceptional items, amortisation of acquired intangibles and non-cash fair value remeasurements of embedded derivatives in long-term debt. The definition of exceptional items is set out in note 4, which you can find in the full results announcement pdf above. The reconciliation of underlying basic earnings per share and underlying cash tax earnings per share to basic earnings per share is shown in note 7, which you can find in the full results announcement pdf above.
• Pro forma basis includes the NationsRent and Lux Traffic acquisitions throughout the year ended 30 April 2007 rather than from their respective dates of acquisition of 31 August 2006 and 15 October 2006. For this purpose the pre-acquisition results of NationsRent have been derived from its reported financial performance under US GAAP adjusted to exclude the large profits on disposal of rental equipment it reported following the application of US "fresh start" accounting principles and to include an estimated depreciation charge under Ashtead's depreciation policies and methods.

Geoff Drabble and Ian Robson will host a conference call with equity analysts to discuss the results at 9.30am on Tuesday 4 March. This call will be webcast live via the link above and there will also be a replay available from shortly after the call concludes. A copy of this announcement and the slide presentation which will be used for the call are available for download a the top of this release. There will also be a conference call for bondholders at 3pm (10am EST).

Please contact the Company's PR advisers, Maitland (Camilla Vella) at +44 (0)20 7379 5151 for more details if you are an equity analyst or an Ashtead bondholder.

Overview

The third quarter saw a continuation of the trends reported at the half year. All three divisions traded strongly in good market conditions and, as a result, underlying operating profit grew by 25% to £40.1m while underlying pre-tax profits grew by 82% to £20.8m. Underlying basic earnings per share rose 83% to 2.5p.

Nine months underlying pre-tax profits have grown 48% to £97.5m at actual rates of exchange and by 55% at constant rates whilst the nine months underlying earnings per share are up one-third to 11.4p.

Return on Investment ("RoI") for the Group rose to 13.6% for the 12 months ended 31 January 2008 (year to April 2007 - 12.9%). Sunbelt delivered 14.1% RoI whilst A-Plant's RoI was 10.6%. The after tax return on equity was 17.4% (year to April 2007 - 15.3%).

Divisional performance

Sunbelt

Sunbelt's operating profit margin again improved as we continue to enhance the operational efficiency of the business following the NationsRent acquisition. Whilst revenues remain flat in total, this reflects our curtailment of the low margin sales of new equipment undertaken previously by NationsRent. Excluding sales revenues, rental and rental related revenues grew 1.6% in the third quarter to $338m and by 1.3% in the nine months to $1,092m.

Dollar utilisation was 63% at 31 January 2008 compared to a pro forma 62% at 30 April 2007. Fleet size was on average 1% larger in the third quarter than in the previous year whilst physical utilisation for the quarter rose 4% to 66% (2007 - 63%). Rental rates declined 0.5% in the nine months. This includes a decline of 3.5% in the quarter reflecting the high comparative from a year ago when rates initially grew strongly after the NationsRent acquisition. We anticipate that rental rates will return to being broadly flat year on year as we enter the busier summer season.

A-Plant

A-Plant grew revenues strongly in mature markets with 6% growth in the third quarter. This growth reflected a 10% increase in average fleet size and a 1% increase in physical utilisation to 68% (2007 - 67%). Like for like rental rates were broadly flat. Third quarter operating costs rose only 1% with the resulting operating leverage producing a 77% rise in third quarter operating profit to £5.4m.

A-Plant continues to benefit from being able to provide its contractor customers with the complete plant and tool product range supported by strong operational delivery and IT support.

Ashtead Technology

Ashtead Technology again grew its revenues and profits strongly in offshore and onshore markets which remain good. The strategic review of Technology announced in December is progressing well.

Capital expenditure

Capital expenditure for the nine months was £301m (2007 - £236m), more than double the depreciation charge as we invested to de-age our fleets, to complete the reconfiguration of the acquired fleet in the US and to support the top-line growth in the UK. Our capital expenditure guidance for the 2007/8 fiscal year as a whole is unchanged at approximately £320m gross and £260m net of disposal proceeds.

Our rental fleet in all divisions has now reached an age and mix which we consider optimum. Accordingly, we expect significantly reduced capital expenditure next year at approximately £220m gross and £175m net of disposal proceeds. Around £180m of the gross expenditure will be for replacement with £40m of investment for growth (2.5% of current fleet size).

Share repurchase, net debt and leverage

Good progress has been made in implementing the 5% share repurchase announced in December. To 3 March, 4.2% of the issued share capital has been acquired at a cost of £18.1m or 77p per share.

Net debt rose £55m from £931m at the start of the quarter to £986m due to currency translation effects as the US dollar strengthened from $2.08 to $1.99 (£40m effect) and to the £11m spent by the quarter end on the share buy-back. The ratio of net debt to the LTM EBITDA at 31 January 2008 of £370m was 2.7 times, comfortably within our 2-3 times target. With a reduced requirement for replacement capital expenditure in future, we expect to be in the lower half of this range by April 2009 and to continue deleveraging in future periods.

Debt facilities remain committed for the long-term with the first significant maturity being in August 2011. At 31 January 2008, availability under the $1.75bn asset based loan facility was $590m ($589m at 30 April 2007), well in excess of the threshold of $125m at which financial covenants would be measured.

Current trading and outlook

Despite the economic uncertainty, our markets in the US and the UK remain good and our experience on the ground suggests that this will continue for the foreseeable future. In the event of changing markets, we have a flexible business model that is able to respond quickly and effectively to market conditions. The Board remains confident in the Group's prospects for the full year and beyond.