MIG with Cintra announced as preferred bidder for Chicago Skyway

17 October 2004

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The City of Chicago (the City) today advised that the MIG-Cintra consortium (the Consortium) has been selected as preferred bidder for 100% of the Chicago Skyway Toll Bridge Concession (the Skyway). The Consortium offered the City a total purchase price of US$1.82bn (A$2.5bn) for the 99 year concession. Execution of the Concession Agreement is subjected to the consent of the Council of the City of Chicago. Financial close is expected to occur within 90 days of execution.

Mr Stephen Allen, CEO of MIG said, "We are delighted the MIG-Cintra Consortium has been appointed by the City of Chicago as preferred bidder for the Skyway. Our Consortium is committed to continuing to provide road users with a reliable, value for money, alternative route to the increasingly congested road network surrounding the Skyway. We look forward to working with the City and the community in to the future.

"The Skyway satisfies MIG's stated investment objectives to invest in intra urban toll roads in OECD and OECD like countries, with long dated concession agreements. The Skyway is a growth asset that is value accretive to our portfolio. It has been in operation since 1959, has significant unused capacity, and has experienced average traffic growth over the past 10 years in excess of 6% per annum.

"The Skyway should produce revenue growth through the combination of forecast traffic increases, as it captures a greater share of corridor traffic, and a toll from 1 January 2005 of $2.50 and then a toll regime which permits toll increases at the greater of CPI or a specified tolling schedule from 2008 to 2017. Tolls post 2017 increase by the greater of 2% per annum, CPI or nominal GDP per capita, " Mr Allen said.

Project Details

• 99 year lease of Skyway from the City of Chicago with the exclusive right to operate, maintain, manage, rehabilitate and toll the Skyway
• A toll of $2.50 from 1 January 2005 and then a toll regime which permits toll increases at the greater of CPI or a specified tolling schedule from 2008 to 2017. Tolls post 2017 increase by the greater of 2% per annum, CPI or nominal GDP per capita
• The asset has significant spare capacity and competing routes are congested
• The asset has been subject to significant capital works

Investment fundamentals

• MIG has assumed Macquarie Bank's position in the consortium bidding for the Chicago Skyway
• MIG holds a 45% interest, with Cintra holding the remaining 55% interest - a shareholder agreement regulates voting matters
• Purchase price US$1.82bn (A$2.5bn)
• Purchase price determined applying a risk premium in excess of 6%¹
• Growth asset that will deliver limited yield in the first 10 years

Financing the Investment

• MIG expects to conduct a capital raising to fund its equity contribution
• MIG's previous guidance on distributions, provided in its FY04 results announcement (August, 2004), remains unchanged

Skyway has been in operation since 1959 and has an established traffic and revenue history. It is a 12.5 kilometre divided elevated roadway with a significant bridge over the Calumet River and connects Indiana East-West Toll Road and Dan Ryan Expressway.

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1 The risk premium stated above is based on certain assumptions which, if not achieved, may affect the return.

For further information 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