Alinta Proposal

02 April 2007

In response to continuing market speculation in relation to the proposal by the consortium led by Macquarie Bank Limited (Macquarie) to acquire all shares in Alinta Limited (Alinta), Macquarie wishes to confirm several matters.

The offer, submitted by the consortium on Friday March 30, 2007, was by way of Scheme of Arrangement for all the shares in Alinta at a fully underwritten price of $15.45 per share, with options for all cash only, cash and scrip, or all scrip only.

Macquarie has written today to the Alinta Directors stating it believes it is both appropriate and in the interests of Alinta shareholders that the Independent Expert, to be appointed by Alinta to assess the Directors’ recommendation of the Babcock and Brown/Singapore Power proposal, also analyses the other alternatives considered by the Directors, including the Macquarie consortium’s offer.

Macquarie has informed the Alinta Directors that it consents to the release of full details of the consortium’s offer to the Independent Expert. Macquarie has also advised the Alinta Directors that it would be pleased to provide whatever briefings the Independent Expert might require in evaluating the consortium’s offer.

Macquarie believes the consortium’s offer is superior to the $15.00 per share cash and bundled scrip offer by Babcock and Brown/Singapore Power (less forthcoming dividends in the three nominated Babcock & Brown funds), which was recommended last Friday by Alinta’s Directors.