Alinta Proposal

30 March 2007

In response to a number of enquiries received today in relation to the Macquarie proposal to Alinta, Macquarie Bank advises the following:

Macquarie proposed an offer by way of Scheme of Arrangement for all the shares in Alinta at a fully underwritten price of $15.45 per share. Shareholders were to be given the following choices for each Alinta share:

• Cash Option: Cash of $14.19 + an APA distribution valued at $1.26 based on market price for APA with a cash out option ("APA Component") ;
• Cash & Scrip Option: Cash of $4.82 + APA Component + a share in an Infrastructure Company with a value of $9.37 ; or
• Scrip Option: APA Component + 1.487 share in an Infrastructure Company with a value of $ 14.19

Each option totalled $15.45 per share.

If investors elected the Scrip Option there was Capital Gains Tax rollover relief available.

Given the nature of the Scheme proposal, there needs to be a default option for shareholders who fail to make an election. In opting for the Scrip Option as the default, Macquarie took into account the potential Capital Gains Tax liability for small retail investors. The alternative of a cash default option would impose Capital Gains Tax on Shareholders who fail to make an election.

The Macquarie proposal for the Infrastructure Company was fully underwritten by ABN Amro Rothschild, Citigroup, Credit Suisse, Goldman Sachs JB Were and Macquarie ("Underwriters") . Full details of the Infrastructure Company were provided to Alinta's advisers. The Infrastructure Company was to be an internally managed company and in the view of Underwriters compared favourably with other similar listed stocks on all measures including yield, gearing and Enterprise Value multiples.