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## Cardno Limited and its Controlled Entities for the year ended 30 June 2010 

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4,113,400 options issued during the 2008 and 2010 financial years and still on issue as at 30 June 2010 have not been included in the calculation of diluted earnings per share because they are not dilutive for the year ended 30 June 2010. These options could potentially dilute basic earnings per share in the future. 

## Subsequent Event – Impact of Rights Issue 

On 11 August 2010 Cardno completed a $49 million capital rising via a 1:6 fully underwritten renounceable rights issue. The number of ordinary shares issued under the rights issue was 15,089,139. 

The current and prior year basic and diluted earnings per share have not been adjusted by the bonus element associated with the rights issue (factor of 1.02) as it is not material. 

