MIG Performance Fees for Year Ended 30 June 2004

06 July 2004

Macquarie Infrastructure Group (MIG) today advised that total performance fees of $6.09 million are now payable by MIG to its management companies¹ for the year ended 30 June 2004.

Each year the management companies of MIG are eligible to earn performance fees in the event that the MIG accumulation index outperforms the S&P/ASX 300 Industrials Accumulation Index (Benchmark) in any financial year having made up for any underperformance in the previous years. The performance fee is 15% of the amount of the net outperformance.

Where a performance fee is earned by the management companies of MIG, it is payable by MIG in three equal annual instalments. The first instalment is payable at the end of the year of outperformance and the second and third instalments are payable one year and two years later respectively, but only where MIG outperforms the Benchmark on a cumulative basis over the two and three year periods respectively.

A summary of the status of performance fee instalments payable to the management companies as at 30 June 2004 follows:

2004 - 1st Instalment

No performance fee was earned for the year from 1 July 2003 to 30 June 2004. This reflects the fact that, during this period, the MIG accumulation index² decreased by 6.5% while the Benchmark³ increased by 16.6% over the same period.

The relative underperformance from the year ended 30 June 2004 will be carried forward and offset against future outperformance before any new performance fee may be earned for the year ending 30 June 2005 and subsequent years.

2003 - 2nd Instalment

For the two years from 30 June 2002 to 30 June 2004, the MIG accumulation index increased by 14.8% while the Benchmark increased by 15.8% over the same period. As a consequence the second instalment of the 2003 performance fee of $65.68 million will not be payable by MIG.

2002 - 3rd Instalment

For the three years from 30 June 2001 to 30 June 2004, the MIG accumulation index increased by 16.5% while the Benchmark increased by 12.9% over the same period. As a consequence the third and final instalment of the 2002 performance fee of $6.09 million is now payable by MIG.

The independent directors of Macquarie Infrastructure Investment Management Limited have approved this instalment to be applied to an application for MIG securities.

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 The performance of the MIG accumulation index is measured as the simple average closing price of the index over the last 10 trading days of each financial year compared to the previous corresponding period.  Distributions are assumed to be reinvested as at the relevant ex-distribution date.

³ The performance of the Benchmark is measured as the simple average closing price of the S&P/ASX300 Industrial Accumulation Index over the last 10 trading days of each financial year compared to the previous corresponding period.  Distributions are assumed to be reinvested as at the relevant ex-distribution date.

For further information, please contact:

Bianca Francis
Investor Relations Manager
Mobile: (61) 413 279 523
Email: bianca.francis@macquarie.com

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

Investor Enquiries
Peter Johnston
Head of Investor Relations
Mobile: (61) 413 994055
Email: peter.johnston@macquarie.com