Ontario Superior Court Rules in Favour of 407 Etr and Dismisses Province Appeal Re Change Request

07 January 2005

Macquarie Infrastructure Group (MIG) announced today that, in the legal proceedings concerning tolling rights of 407 ETR,  Mr. Justice Cullity of the Ontario Superior Court of Justice has ruled in favour of 407 ETR and dismissed the appeal by the Provincial Government against the prior decision of an Arbitrator.

MIG CEO, Mr. Steve Allen said today: “This is an authoritative Court judgment affirming the very strong decision of Arbitrator retired Judge Mr. Hudson.  We remain confident that 407 ETR has a clear right to determine the tolls to apply on Highway 407.

We and 407 ETR now wish to get on with managing the 407 in the interests of motorists and all other stakeholders.” he said.

We look forward to working co-operatively with the Province over the 94 years remaining in the concession”.

The Province had argued that, before increasing tolls on Highway 407, the concession holder, 407 ETR, is required by its contract to obtain the approval of the Province by filing a Change Request seeking approval for the proposed toll increase.

407 ETR had argued that its only requirement to validly increase tolls was to give the Province 28 days advance notice of the pending toll increase.

Early in 2004, the parties agreed on an expedited arbitration of this issue and on 10 July, 2004, the Arbitrator, retired Judge Drew Hudson, found in favour of 407 ETR on all issues.  He held that:

1. Neither a Change Request nor any other form of approval is required in order for 407 ETR to change tolls or fees
2. Providing 28 days’ notice of the pending toll increase to the Province is the only requirement for changing tolls or fees
3. The February, 2004 toll increase implemented by 407 ETR complied with the contract
4. 407 ETR was not in default of its contract as a result of the February, 2004 toll increase

The Province appealed against the decision of Mr. Hudson resulting in today’s decision by Mr. Justice Cullity, dismissing the Province’s appeal.

The Province would require the leave of the Ontario Court of Appeal to institute an appeal against the decision of Mr. Justice Cullity.

MIG holds a 30% interest in 407 ETR.

• Today’s release by 407 ETR.

For further information, please contact:

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

Media Enquiries
Suzanne Mercer
Public Affairs Manager
Tel: (612) 8232 8525
Email: suzanne.mercer@macquarie.com