Performance Fee for Period Ended 30 June 2003

04 July 2003

Macquarie Communications Infrastructure Management Limited (MCIML or the Manager), the Manager of Macquarie Communications Infrastructure Group (MCG) today advised that a performance fee of $22.16 million will be paid to the Manager for the period 1 January to 30 June 2003.

The Manager is a wholly owned subsidiary of Macquarie Bank Limited.

Mr Scott Davies, Chief Executive Officer of MCG said, “In the period 1 January to 30 June 2003 the security index for MCG has outperformed the benchmark index, the S&P ASX 200 Industrials Accumulation Index (the Benchmark) by 33.01%.

Under the terms of the management agreement the Manager is paid 20% of the outperformance of the Benchmark.  This outperformance amounts to $22.16 million.

Mr Davies also said that since listing on 13 August 2002 at an issue price of $2.00 investors have enjoyed strong capital growth with the average closing price of MCG increasing by 46.73% from $2.00 to $2.93¹ as at 30 June 2003. This positive result for investors is in addition to total distributions declared for the full year to 30 June 2003 of 15.5 cents, slightly above the prospectus forecast.

"Between the period of listing from 13 August 2002 to 30 June 2003 market capitalisation has increased by $159.5 million. MCG was noted as being the leader of the 10 largest IPO's in FY2003 in terms of security price appreciation, according to research released by KPMG in June 2003," Mr Davies said.

The Manager has determined that it will apply for 100% of this performance fee to be satisfied via the issue of MCG securities. With respect to these securities MCIML advises that it will not be a long term holder of the securities and will dispose of them in an orderly manner.

MCIML has also resolved to apply for any performance fees payable in the future to be satisfied via the issue of MCG securities, subject to variation on six months notice and any Corporations Act constraints.

¹ Based on the average closing price over the last 15 trading days till the end of the period to 30 June 2003.

For further information, please contact:

Investor Enquiries
Geetika Marwaha
Investor Relations Manager
Tel: (61 2) 8232 5301
Email: geetika.marwaha@macquarie.com

Media Enquiries
Jane Rotsey
Public Affairs Manager
Mobile: (61) 401 997 160
Email: jane.rotsey@macquarie.com