Macquarie managed fund to acquire interest in Canadian aged care provider

13 September 2005

The Macquarie Power Income Fund (MPT), an income trust listed on the Toronto Stock Exchange and investing in North American power and infrastructure assets, today announced that it has entered into an agreement to acquire a 45 per cent indirect equity interest in Canadian aged care provider, Leisureworld Inc., and associated entities for approximately $C102 million, including offering and transaction costs.

MPT intends to finance its acquisition through a public offering of subscription receipts and through the issue of exchangeable units to certain of the vendors of the Leisureworld business.

The acquisition is expected to take place around mid-October 2005, at the same time that Macquarie Bank Limited (MBL) reaches financial close for the remaining 55 per cent of the Leisureworld business through a subsidiary. Following financial close of the acquisition, MBL may seek to transfer the economic benefits of its 55 per cent ownership to another Macquarie managed fund within 6 months.

Leisureworld is a leading operator of long-term care (LTC) facilities in the Canadian province of Ontario. The Leisureworld portfolio includes 19 LTC facilities (3,147 beds), two retirement homes (87 beds) and an independent living facility (53 beds). It has been operating successfully for 32 years. The purchase also included Preferred Health Care Services, a leading provider of professionals for long-term care homes and for private care.

In March 2005, MBL announced it had agreed to acquire through a subsidiary the business of Leisureworld for $C528 million, including transaction costs, to be funded by a combination of debt and equity. MBL also stated it was exploring long term options for its holding in Leisureworld, including possible transfer into a Macquarie managed fund.

The completion of the transaction is subject to regulatory approvals, including from the Ontario Ministry of Health and Long Term Care. The impact on MBL's Tier 1 capital is expected to be negligible.

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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