Distribution forecasts for 2004 and 2005

12 September 2003

Macquarie Communications Infrastructure Group (MCG) is pleased to confirm distribution forecasts of 22.4 cents per stapled security in 2004 and 28.8 cents per stapled security in 2005.

In cents per security terms, these amounts meet the forecasts outlined in the prospectus. However, due to the number of stapled securities on issue increasing from 155 million at IPO to more than 165 million stapled securities on issue currently, this effectively increases the total cash distributed out of the business to security holders. MCG is able to meet the cents per security forecast for both 2004 and 2005, amounting to an extra $2.4 million in 2004 and $3.1 million in 2005 payable to security holders. This represents a 6% increase in both years.

As highlighted in the annual results announcement on 21 August 2003, Broadcast Australia’s (BA) senior debt facilities contained certain restrictions that may have impacted on the ability of MCG to meet prospectus forecast distribution payments in 2004 and 2005.

As a result of the strong operating performance in 2003, BA has finalised the negotiation of a package of amendments to the senior debt facilities, including revised distribution caps and a reduction in the capital expenditure facility from $175 million to $150 million. This has the effect of reducing ongoing commitment fees and decreases the obligation on BA to fund a debt service reserve account from $35 million to $10 million in 2006.

Another positive result is the amendment to the interest rate hedging policy for the 3 tranches of medium term notes issued by BA. As outlined in the prospectus, interest on these notes is currently 75% hedged on a 5 year rolling basis. This has been changed to 75% hedged in the first 2 years and then reverts to a stepped-down hedging regime over the next 3 years, which has the effect of providing extra flexibility to BA in managing its hedging profile.

Breakdown of BA Revenue for Year Ended 30 June 2003

Following a number of requests for information, the breakdown of revenue for BA for the year ended 30 June 2003 is outlined in the table below. MCG remains confident that BA will meet its revenue and EBITDA prospectus forecasts for the year ending 30 June 2004.

*Prospectus dated 13 August 2002.

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