MIG Report for Half Year ended 31 December 1999

18 February 2000

The Directors of Macquarie Infrastructure Investment Management Limited (MIIML), the Manager of the Macquarie Infrastructure Group (MIG) today announced the financial results of MIG for the half year ended 31 December 1999.

Performance in Brief

The Directors noted that net profit from operations before tax was $18.1 million. After deducting the net loss resulting from asset revaluations of $58.1 million, a net operating loss before tax of $40.0 million was recorded. The revaluation losses resulted mainly from MIG’s investment in Horizon Energy, which listed on the ASX on 28 January 2000. The write down on this investment was $41.9 million. In addition, the increase in long term bond rates from 6.15% to over 7.00% during the December 1999 half year also negatively impacted on asset valuations.

The Directors noted that earnings from investments (eg dividends, interest etc) increased by 99% over the previous corresponding period to $26.5 million.

The accounting result will not affect distributions to MIG unit holders during the current financial year since cash flows from assets are largely unaffected by increased interest rates and MIG has substantial retained earnings of $132.9 million (following the December 1999 distribution). A 5 cent per unit distribution was paid for the period and the Directors expect that a similar distribution will be paid in the second half.

Assets

During the period the following investments were revalued in line with the MIG’s accounting policies.

NB Figures subject to rounding effects

OTHER SIGNIFICANT ASSETS

* Economic interest
# Service agreement

Distribution Reinvestment Plan

The Distribution Reinvestment Plan was in operation for the half year ended 31 December 1999. The plan allows stapled security holders the choice of receiving cash distributions or reinvesting all or part of their distribution in new stapled securities issued at a discount. The discount for the 31 December 1999 distribution was 2.5%, and stapled securities were issued under the Distribution Reinvestment Plan at $1.35 per stapled security.

Conclusion

The last six months has been a very busy period for MIG. Highlights included:

• the opening of MIG’s biggest asset, the Eastern Distributor toll road in Sydney, eight months ahead of schedule
• the acquisition of seven infrastructure assets in Europe from Norwegian conglomerate Kvaerner
• the consequent raising of $428.1 million in additional capital through a 1 for 2 Rights Issue.

The Directors have great confidence in the value of MIG’s portfolio of infrastructure assets.

For further information, please contact:

Dennis Eagar
Division Director
Macquarie Infrastructure Investment Management Limited
Tel: (02) 8232 6771
Mobile: 0414 345 176
Email: dennis.eagar@macquarie.com