April 29, 2002 — Macquarie’s Toronto and New York offices announced AltaLink’s successful acquisition of the electricity transmission business of TransAlta Corporation in the Canadian Province of Alberta.

The deal closed for approximately CDN $850 million, following the Alberta Energy and Utilities Board approval of the transaction on March 28. TransAlta’s system serves 55 per cent of the Province, including the city of Calgary.

The owners of AltaLink, which in turn now own Canada’s first independent transmission company, are:
* SNC-Lavalin Energy Inc. (50 per cent);
* Ontario Teacher’s Pension Plan Board (25 per cent);
* Macquarie North America Ltd. (15 per cent); and
* Washington, D.C.-based Trans-Elect Inc. (10 per cent).
“This is a landmark transaction for Macquarie in North America and for the North American electricity transmission market,” said Chris Leslie, transaction leader from Macquarie’s New York office.

“It has demonstrated in a new market that there are viable and dynamic alternatives to traditional ownership of electricity transmission and other infrastructure assets. It also confirms international models can be successfully adapted to the North American marketplace. The considerable financial and technical strength of AltaLink and its owners places them in an ideal position to meet the transmission expansion requirements of the Province and to build its business in the rapidly deconsolidating North American market.”

President and Chief Executive Officer of Macquarie North America Ltd., Peter Salisbury, said that the Macquarie Group of companies has delivered on its international expansion strategy by focusing on niche markets where it can add value and by teaming with very strong local players.

“It’s a strategy which has been particularly successful in the North American power and utilities market where, in addition to the AltaLink investment, Macquarie has been involved in a range of power and utilities transactions focusing on the consolidation of electricity distribution transactions in Ontario. Macquarie North America is also advising on the sale of power contracts in Alberta,” he said. “It is no accident that Macquarie’s electricity business in Canada is focussed in Ontario and Alberta. These provinces are currently undergoing deregulation of their electricity industries – and we are taking advantage of our global deregulation experience to develop business opportunities in those provinces.”

The Macquarie Group provides specialist investment, advisory and financial services in select markets around the world. Macquarie established its New York office in 1995 and its Toronto office in 1998. The Macquarie Group also has offices in Vancouver, Chicago, and Jupiter, Florida.

The Macquarie Group comprises Macquarie Bank Limited, a company authorised under the Banking Act 1959 (Cth) to conduct banking business in Australia, and its worldwide affiliated entities of 22 offices in 15 countries. Macquarie is a world leader in infrastructure financing, recognised by Project Finance International Magazine, which ranked Macquarie No. 1 for the Americas, No. 1 for Asia-Pacific and No. 3 Globally for total mandates won during 2001.

The Macquarie Bank Group is an infrastructure fund manager, with its flagship fund, the Macquarie Infrastructure Group, owning interests in toll roads in Europe, the UK, Australia and Canada, including a 43 per cent interest in Toronto’s Highway 407, one of the world’s largest privately owned toll roads. Macquarie also manages infrastructure equity investments in the United States, Southern Africa and Korea. Including the Altalink investment, Macquarie’s Canadian infrastructure investments under management exceed C$1.3 billion.