MDM Engineering Group Limited ("MDM" or the "Company")

The Company announces that it has experienced a shift in its expected project pipeline from the current year back towards the year to 31 March 2012.  This has occurred principally due to delays to certain projects which management had expected to commence during the earlier part of this year, rather than to a decrease in overall expected project activity.

As a result, the Company expects that a significant proportion of its expected revenue for the current financial year will be deferred to the following year, and consequently it is believed that earnings for the year to 31 March 2011 will be materially below current market expectations.

However, with markets gradually improving and sustained interest for MDM's services, a healthy pipeline continues to be developed and the Company expects study, feasibility and execution project flow to pick up in the second half of the 2011 financial year.

MDM will announce its results and level of dividend for the year to 31 March 2010 on 14 July 2010, with underlying earnings expected to be broadly in line with market expectations. The Company will provide further information with regard to the outlook for the 2011 and 2012 financial years in this announcement.

MDM Engineering Group Limited

Tel: + 27 11 993 4300

Martin Smith

George Bennett

Numis Securities Limited

Tel: + 44 (0) 20 7260 1000

John Harrison (Nominated Adviser)

James Black (Corporate Broker)