Broadcast Australia Wins New SBS Contracts

22 August 2002

Macquarie Communications Infrastructure Group (MCIG) today announced that Broadcast Australia, which is 100% owned by MCIG, has been appointed by SBS as the exclusive preferred supplier for the provision of 40 new regional digital TV services.

The SBS had sought tenders for the provision of 46 regional services.

The MCIG IPO Prospectus had forecast that Broadcast Australia would win a smaller proportion of the contracts being tendered, although the prices are marginally lower than assumed. Consequently, revenues generated by these contracts will be consistent with the Prospectus forecasts. More importantly, the new contracts are for a 15 year period when it was assumed to be 10 years in the Prospectus.

The key impacts of these contracts will be:

• once fully operational, the new contracts will generate approximately $13.4m additional revenue per annum for Broadcast Australia
• 93% of Broadcast Australia's forecast revenue for the financial years 2003 to 2005 will now be contracted
• the contracts will significantly boost Broadcast Australia's long term revenue profile.

Broadcast Australia has been appointed as exclusive preferred supplied to SBS for these services and have signed an agreement to work towards finalising contractual arrangements. Pricing has already been set although an actual timetable for rollout has yet to be agreed. SBS's agreement is subject to funding approval by the Federal Government and Ministerial approval of SBS's Digital Implementation Plans for each location.

For further information, please contact:

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