MCG - Performance Fee for Six Months Ended 30 June 2005

06 July 2005

Macquarie Communications Infrastructure Group (MCG) today advised that a performance fee of A$18.2 million is payable to its Manager¹  for the six-month period 1 January 2005 to 30 June 2005.

Over the six-month period total security holder value²  increased by A$503 million.

Each six months the Manager of MCG is eligible to earn a performance fee if the MCG accumulation index³  outperforms the S&P ASX 200 Industrials Accumulation Index⁴  (Benchmark).  The performance fee is 20% of the outperformance over the Benchmark for the period.

In the period 1 January 2005 to 30 June 2005, the MCG accumulation index increased by 16.8%, while the Benchmark increased by 7.3%.  MCG has therefore outperformed the Benchmark by 9.5% and this outperformance results in a performance fee payable of $18.2 million.

The Manager will apply the performance fee to a subscription for MCG securities⁵.
 

1  The Manager of MCG is Macquarie Communications Infrastructure Management Limited (MCIML), a wholly owned subsidiary of Macquarie Bank Limited.
2  The increase in total security holder value represents the aggregate of the increase in the value of securities on issue at the beginning of the period, plus the increase in the value of new securities issued during the period, plus distributions declared. 
3  The 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.
4  The performance of the Benchmark 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.
5  MCIML announced on 4 July 2003 that it had resolved to apply any further performance fees to the subscription for MCG securities, subject to variation with six months’ notice and any Corporations Act constraints.

Macquarie Communications Infrastructure Management Limited is not an authorised deposit-taking institution for the purposes of the Banking Act (Commonwealth of Australia) 1959, and Macquarie Communications Infrastructure Management Limited's obligations do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 ("MBL").  MBL provides a limited AUD1,750,000 guarantee to the Australian Securities and Investments Commission in respect of Corporations Act obligations of Macquarie Communications Infrastructure Management Limited as a responsible entity of a managed investment scheme.  MBL does not otherwise guarantee or provide assurance in respect of the obligations of Macquarie Communications Infrastructure Management Limited, the performance of funds managed by Macquarie Communications Infrastructure Management Limited or the repayment of capital.

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