COMPANY ANNOUNCEMENT

12 November 2012

ASIC Proceedings


For analyst and media enquiries, please
call Sean O'Sullivan on +61 2 8274 5246

The Company notes that the New South Wales Court of Appeal (Court of Appeal) today delivered its judgment in proceedings between the Australian Securities & Investments Commission (ASIC) and certain former non-executive directors and a former officer of ABN60

Pty Limited (formerly James Hardie Industries Limited) (ABN60).

This judgment follows the High Court of Australia's decision in May 2012 upholding ASIC's appeal and overturning an earlier Court of Appeal decision and thereby finding that there had been a breach of the directors' and officer's duties. The High Court remitted the matter back to the Court of Appeal for further consideration of remaining issues in the appeals to that Court on questions of excusing liability, penalty and disqualification and on certain questions concerning costs.

The Company notes that the Court of Appeal's judgment includes orders against the former directors and officer relating to penalties, bans from being a director and costs. The Company is not presently able to assess the financial impact of the costs incurred by ASIC in the proceedings for which it may become liable. If the cost implications are material, the Company will make further disclosure but otherwise the costs (net of any recoveries) will be accounted for in the Company's financial statements as has been its practice. The Company does not intend to comment further.

Background

In February 2007, ASIC commenced civil proceedings in the Supreme Court of New South Wales against the Company, ABN60 and ten then-present or former executives and directors of the James Hardie Group in relation to the creation and funding of the Medical Research and Compensation Foundation (MRCF) in February 2001. While the subject matter of the allegations varied between individual defendants, the allegations against the Company were ultimately confined to alleged contraventions of provisions of the Australian Corporations Act relating to continuous disclosure and engaging in misleading or deceptive conduct in respect of a security.

The Court hearing commenced on 29 September 2008. On 23 April 2009, the Court delivered judgment, making certain findings against the Company and the ten former officers and non- executive directors of the Company. All defendants other than two commenced appeals from the judgment, and ASIC responded by cross-appealing. The appeals brought by the former non-executive directors and executives were heard in April 2010 and the appeal brought by the Company was heard in May 2010. On 17 December 2010, the New South Wales Court of Appeal delivered its judgments.

The Court of Appeal dismissed the Company's appeal and ASIC's cross-appeal and ordered

that the Company pay 90% of the costs incurred by ASIC in respect of the Company's appeal.

The Court of Appeal also allowed the appeals of the seven former non-executive directors against the findings of contravention that had been made against them, overturning the finding of the trial judge that the directors had approved a misleading draft ASX announcement at a Board meeting in February 2001 relating to the MRCF's establishment. The Court of Appeal dismissed the appeal by one of the former officers and ASIC's related cross appeal and in part allowed the other former officer's appeal and the related ASIC cross appeal.

ASIC and one former officer subsequently sought and were granted special leave to appeal the Court of Appeal's decisions to the High Court. The appeals and related cross appeals were heard by the High Court over three days commencing 25 October 2011.

On 3 May 2012, the High Court upheld ASIC's appeal and overturned the Court of Appeal's decision in favour of the former non-executive directors and dismissed the former officer's appeal against the Court of Appeal's decision. The High Court did not render judgment on claims to be excused from liability, penalty and disqualification and on certain questions concerning costs and, instead, remitted these matters back to the Court of Appeal for further consideration. The Court of Appeal heard submissions on these matters over a three-day period commencing 20 August 2012.

For further information, refer to the ASIC Proceedings section of footnote 9 to the JHIplc

Financial Statements for the quarter ended 30 June 2012.

END

Media/Analyst Enquiries:

Sean O'Sullivan

Vice President, Investor and Media Relations

Telephone: +61 2 8274 5246

Email: media@jameshardie.com.au

Disclaimer

This company announcement contains forward-looking statements. James Hardie may from time to time make forward-looking statements in its periodic reports filed with or furnished to the SEC, on Forms 20-F and 6-K, in its annual reports to shareholders, in offering circulars, invitation memoranda and prospectuses, in media releases and other written materials and in oral statements made by the company's officers, directors or employees to analysts, institutional investors, existing and potential lenders, representatives of the media and others. Statements that are not historical facts are forward-looking statements and such forward-looking statements are statements made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995.
Examples of forward-looking statements include: