407ETR Seeks Injunction Against Ontario Government

05 February 2004

Today 407ETR applied to the Ontario Superior Court of Justice for an injunction in respect of matters relating to the Notice of Default served on 407ETR by the Ontario Government on 3 February 2004.

The Government is asserting that 407ETR should submit a Change Request which must be approved by the Government before tolls can be increased. The Government has never before asserted this position, although there have been a number of prior toll increases.

407ETR has legal advice that its right to increase tolls is not subject to submission of a Change Request which must be approved or consented to by the Government

407ETR will strongly contest the Government's view of the concession agreement. 407ETR plans to take action to protect the company’s interests and to provide a basis for resolving the issues between 407ETR and the Government. The dispute resolution process contained within the concession agreement has been initiated.

If 407ETR was found to be in default and the default was not rectified it could result in a range of outcomes. The Government has previously asserted that this could include termination of the concession agreement.

Following the Government issuing the default notice Standard and Poor’s today placed 407 International's debt ratings on Credit Watch with negative implications reflecting the dispute between 407ETR and the new Liberal Government. Standard and Poor's reiterated its view that the possibility of the Province unilaterally imposing restrictions on 407 International's toll rate-setting framework, as outlined in the contract, is unlikely.

MIG owns, directly and indirectly, 43% of 407 International, Inc. 407 International Inc owns 100% of 407ETR. 407ETR is the company which holds a 95 year concession to operate the 407ETR. 407ETR is a 108 kilometer toll road serving the main growth corridor in the Greater Toronto Area.

For further information, please contact:

Alan Stockdale
Global Head, Investor and External Relations
Macquarie Infrastructure Group
Tel: 612 8232 6771
Mobile: 61 0 418 276 366
Email: alan.stockdale@macquarie.com

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