Performance Fee for Six Months Ended 31 December 2004

06 January 2005

Macquarie Communications Infrastructure Group (MCG) today advised that a performance fee of $57.91 million is payable to its Manager¹ for the six month period 1 July to 31 December 2004.

Each six months the Manager of MCG is eligible to earn a performance fee if the MCG accumulation index outperforms the S&P ASX 200 Industrials Accumulation Index (Benchmark). The performance fee is 20% of the outperformance over the Benchmark for the period.

In the period 1 July 2004 to 31 December 2004, the MCG accumulation index²increased by 63.4%, representing an increase in security holder value of $376 million, while the Benchmark³ increased by 14.6%. MCG has therefore outperformed the Benchmark by 48.8%, or $289.56 million. This outperformance results in a performance fee payable of $57.91 million.

The $376 million increase in security holder value over the six months excludes the significant increase in value attributable to securities issued on 5 January 2005 under both the institutional placement and the first phase of the retail offer conducted in December 2004.

The Manager will apply the performance fee to a subscription for MCG securities⁴.

¹The Manager of MCG is Macquarie Communications Infrastructure Management Limited (MCIML), a wholly owned subsidiary of Macquarie Bank Limited.

²The performance of the MCG accumulation index is measured as the average index value over the last 15 trading days of each six month period compared to the previous corresponding six month period.

³The performance of the Benchmark (S&P ASX 200 Industrials Accumulation Index) is measured as the average index value over the last 15 trading days of each six month period compared to the previous corresponding six month period.

⁴MCIML announced on 4 July 2003 that it had resolved to apply any future performance fees to a subscription for MCG securities, subject to variation with six months notice and any Corporations Act constraints.

For further information, please contact:

Richard Nelson
Investor Relations
Macquarie Group
Tel: (612) 8232 5008
Email: richard.nelson@macquarie.com

Media Enquiries
Suzanne Mercer
Public Affairs Manager
Tel: (612) 8232 8525
Email: suzanne.mercer@macquarie.com