Macquarie Launches Communications Infrastructure Fund to Retail Investors

08 July 2002

Macquarie Communications Infrastructure Group (MCIG) today announced a new listed fund offering investors exposure to stable and predictable returns as well as the growth prospects available through communications infrastructure in Australia and internationally.

The Macquarie Communications Infrastructure Group (MCIG) will raise $310 million in a fully underwritten public float of 155 million stapled securities with an application price of $2 per security and a minimum investment of $2,000.

At listing, MCIG will have 94 per cent of its funds invested in its seed asset, Broadcast Australia, formerly the businesses of NTL Australia. Broadcast Australia owns and operates the most extensive broadcast transmission network in Australia, providing transmission services from 581 antenna sites around Australia, reaching 98 per cent of the population.

Broadcast Australia's revenue stream is primarily derived from providing transmission services for radio and television broadcasts to SBS and ABC under long term contracts, providing both stability of revenues and growth as new services are established under existing contracts. Revenue is also sourced from leasing Broadcast Australia's infrastructure to commercial television and radio broadcasters, telecommunications service providers and community service organisations.

MCIG is forecasting strong cash distributions to investors of 15 cents (7.7% distribution yield based on the application price), 22 cents (11.2%) and 29 cents (14.4%) for the June 2003, 2004 and 2005 financial years respectively, and a forecast internal rate of return for the Broadcast Australia business of 20.5 per cent.

MCIG Chairman Kevin McCann said predictable returns and access to growth were investment characteristics sought in the current market. "We are offering the market stable locked-in growth as well as potentially significant growth opportunities from further contracts for the existing Broadcast Australia business," Mr McCann said.

MCIG Chief Executive Officer Scott Davies said 89 per cent of Broadcast Australia's forecast revenue to 2005 was under various contracts with ABC and SBS (79 per cent) and with commercial broadcasters (10 per cent). These contracts typically run for terms of up to 15 years.

Broadcast Australia's revenues and MCIG distributions, will benefit from the provision of digital TV transmission services to broadcasters as they progressively roll out digital TV under the Federal Government's digital television conversion legislation over the next seven years.

In terms of future investment, Mr Davies said the fund has a mandate to invest globally in communications infrastructure which displays predictable cash flows and revenue growth, high barriers to entry and revenue enhancing opportunities.

Important information:
1. This offer of securities will be made in, or accompanied by, a prospectus
2. Anyone wishing to acquire securities must complete an application form that is in, or will accompany, the prospectus.

For further information, please contact:

Scott Davies
Chief Executive Officer
Tel: (61 2) 8232 7936
Email: scott.davies@macquarie.com

Lisa Jamieson
Macquarie Bank Public Relations
Tel: (612) 8232 6016
Mobile: 0416 237 332