Performance Fee for Year Ended 30 June 2003

04 July 2003

The management companies¹ of Macquarie Infrastructure Group (MIG) today advised that a performance fee was earned for the year from 1 July 2002 to 30 June 2003. The first instalment of the fee, $65.68 million, is now payable by MIG.

The second and third instalments of the performance fee, each of the same amount, will become due on 30 June 2004 and 30 June 2005 providing MIG outperforms the S&P/ASX 300 Industrials Accumulation Index (the Benchmark) for the 2 and 3 year periods ending on those dates.

In the year ended 30 June 2003, the MIG accumulation index increased by 22.7% while the Benchmark decreased by 0.7% over the same period. The performance fee payable is 15% of the dollar value of the out-performance of the Benchmark.

Mr Stephen Allen, Chief Executive Officer of MIG said, "Over the past 12 months MIG's security price has outperformed its Benchmark by 23.4%. Investors have enjoyed strong capital growth, with the weighted average trading price² of the security increasing by 20.2% from $2.97 as at 30 June 2002 to $3.57 as at 30 June 2003. In addition, investors have received a 7.5 cent distribution, which is in line with forecasts provided last financial year.

"Investors have enjoyed substantial growth in the value of their securities since the IPO of MIG in December 1996. If you invested in MIG at IPO you will have experienced a compound annual return of 23.5%³ to 30 June 2003 (refer graph below).

"We acknowledge that the performance fee is considerable, however it has only been earned because security holder value has increased by $1.3 billion over the year to 30 June 2003. It is also worth noting that the second and third instalments of the performance fee will only be paid if MIG continues to outperform the Benchmark and management continues to deliver value for investors.

"MIG management continues to seek to increase value out of its existing portfolio of investments by delivering on projects under construction, enhancing the operational performance of the roads and by seeking opportunities to refinance the businesses," Mr Allen said.

Performance fee instalments are also payable for the 2002 and 2003 years as at 30 June 2003 as per details below. In accordance with MIG's constituent documents, the Independent Directors have approved the application of the performance fee instalments for 2002 and 2003 to a subscription for MIG securities. The management companies advise that they are not a long term holder of the securities and will dispose of them in an orderly manner.

Details of the three performance fee instalments earned by the management companies at 30 June 2003 are:

¹ Macquarie Infrastructure Investment Management Limited (MIIML) and Macquarie Investment Management UK Limited (MIM UK). The management companies are wholly owned subsidiaries of Macquarie Bank.
² Weighted average trading price is calculated over the last 10 business days prior to the end of the year.
³ The compound annual return is calculated from listing on December 16, 1996 with participation in all capital raisings and reinvestment of all distributions.

For further information, please contact:

Investor Enquiries
Bianca Francis
Investor Relations Manager
Tel: 61 2 8232 5007
Email: bianca.francis@macquarie.com

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