Macquarie Capital Alliance Group-led consortium agrees to acquire BBC Broadcast

27 June 2005

Macquarie Bank Limited announced today it was part of a successful consortium led by Macquarie Capital Alliance Group (MCAG) to purchase 100 per cent of BBC Broadcast Limited (BBC Broadcast) from the British Broadcasting Corporation (BBC) for a total consideration of GBP166 million (c. A$392 million).

BBC Broadcast operates from a state-of-the-art playout facility, the Broadcast Centre, on the BBC Campus at White City in London.

Its products and services include playout services, which is a process that transforms content into a datastream ready for transmission. It also offers access services, including subtitling, sign language, and audio description services, plus creative services, which include the design and production of promotional trailers and branded content. BBC Broadcast is a leading provider of these services in Europe.

BBC Broadcast has an agreement to exclusively provide the BBC with playout and access services, electronic programme guides and core creative services until 31 December 2015.

MCAG will acquire a 65 per cent interest in BBC Broadcast for c. GBP75 million (c. A$178 million).

Macquarie Bank will commit GBP40 million (c. A$94 million) in equity to the consortium, called Creative Broadcast Services Limited. The Bank intends to sell down some or all of its proposed investment to institutional investors or to a Macquarie-managed fund within six-to-nine months. Financial close is currently expected at the end of July 2005, subject to final approval from the UK Secretary of State for Culture, Media Sport.

The equity investment will not have a material impact on Macquarie Bank Group's Tier One capital ratio.

The acquisition of BBC Broadcast will be funded through a combination of debt and equity from consortium members. Macquarie Bank is acting as financial advisor and debt arranger for the consortium.

Macquarie Bank Chief Financial Officer, Mr Greg Ward, said the Bank was attracted to this asset because of stable cash flows and existing contracted revenue with the BBC until the end of 2015 together with its strong potential for revenue growth from external sources.

For further information, please contact:

Erica Sibree
Investor Relations
Macquarie Bank Limited
Tel: (612) 8232 5008
Mobile: (614) 1302 6309

Matthew Russell
Public Relations
Macquarie Bank Limited
Tel: (612) 8232 4102
Mobile: (614) 1069 9532

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