In addition to the stake in ElectraNet, YTL Power will also take a 33 % stake in the asset management and services company formed by the bidding consortium to operate the business. This joint venture company will draw on the combined operating, technical and financial expertise of its partners.

The investment in ElectraNet is YTL Power’s first investment into the transmission business.

Macquarie Australia was part of the consortium that successfully bid for the 200 year lease of the transmission network from the South Australian Government. The other members of the consortium are Powerlink and ABB. The A$ 938 million deal which was announced last month is targeted for completion on 31st October 2000.

YTL Power will acquire 33 % out of the 40.25 % interest currently held by Macquarie Australia. Powerlink and ABB will respectively hold 40.25% and 19.5% of the equity in the consortium.

Tan Sri Dato’ Francis Yeoh, Managing Director of YTL Power said, “We are very pleased to have this opportunity to invest in a long term stable business in a mature economy with excellent partners. Australia has been at the forefront of deregulation and privatization of the electricity industry and there is much that we can learn through this investment. As outlined in the NEAC plan, Malaysia is moving ahead with reform of its electricity supply industry. YTL Power’s involvement in the operations of ElectraNet will give us the expertise to participate in all aspects of a reformed Malaysian power industry”.

“Many American and European corporations who were engaged in the power industry in the Asia Pacific region have refocused on their home markets creating a vacuum in this region. This presents investment opportunities for Malaysian companies in the region and ElectraNet is certainly one of them”.

Background

ElectraNet operates and maintains South Australia’s 5,566 km of high voltage transmission lines. The South Australian Government will transfer its entire business to the consortium under a 200-year lease of its assets.

The South Australian Government announced its intention to privatize its electricity assets in February 1998. Legislation allowing this policy decision to proceed was finally passed in the South Australian Parliament in June 1999.

The first long-term lease was announced on December 12, 1999. A joint venture of Cheung Kong Infrastructure and Hong Kong Electric was named as paying A$ 3.525 billion for the 200-year lease of distribution company ETSA and retail company, ETSA Power. ETSA is ElectraNet’s principle customer.

Information on Consortium Partners

· YTL Power International Berhad is Malaysia’s first independent power producer. It owns and operates two gas-fired combined cycle power stations in Malaysia with a total capacity of 1,212 MW.

· Powerlink is a Queensland public sector electricity transmission company which is already Australia’s largest transmission group, with more than 10,000 km of high voltage transmission lines valued at A$ 2.5 billion. Powerlink also provides consultancy services internationally, particularly in the fast growing Asia Pacific region.

· Macquarie Bank Ltd is Australia’s only independent full-service investment bank.One of Australia’s top 25 listed companies, it has assets of A$ 23 billion plus A$ 37 billion in funds under management and administration. Macquarie Australia already manages A$ 7 billion in listed and unlisted infrastructure investments including power assets. Macquare is also the leading provider of debt and equity finance for infrastructure projects in Australia.

· ABB is the world’s leading manufacturer of power transmission equipment, with extensive experience in the design, development and maintenance of power systems. ABB is currently providing high technology substation equipment for the Queensland – New South Wales interconnect and is the provider of HVDC light technology to the proposed Murraylink interconnect between South Australia and Victoria. ABB is also currently involved in the development of the 128 MW Redbank Power Project in the NSW Hunter Valley.