Macquarie Power & Infrastructure Income Fund Announces Increased Cash Distribution And Second Quarter 2006 Results

09 August 2006

TORONTO – Macquarie Power & Infrastructure Income Fund (TSX: MPT.UN – “MPT”, the “Fund”) today announced results for the second quarter ended June 30, 2006

The Fund also announced a 3% increase to its monthly cash distributions from $0.08333 to $0.08583 per unit, the equivalent of $1.03 per unit on an annualized basis. The distribution increase will apply commencing with the August 2006 distribution payable in September 2006.

Fund Results for the Second Quarter ended June 30, 2006
The Fund generated revenue for the quarter of $16.3 million, a 17.3% decrease on revenue from the previous corresponding quarter of $19.7 million. The decrease in revenue versus the period in 2005 was due largely to the scheduled major maintenance of the Cardinal plant which happens every six years. Loss from operations [1] for the Fund was $1.3 million for the quarter, compared to income of $1.9 million for the previous corresponding quarter.

The Fund’s distributable cash [2] for the quarter was $6.3 million ($0.210 per fully diluted unit), compared to the previous corresponding quarter of $4.3 million ($0.202 per fully diluted unit).

Declared distributions to unitholders for the quarter were $7.5 million ($0.250 per unit), representing a payout ratio of 119% (Q2 2005 – 113%).

The increase in the Fund’s distributable cash and distributable cash per unit for the quarter reflected distributions of $2.6 million from Leisureworld as well as the continuing impact of electricity rate increases under Cardinal’s Power Purchase Agreement with Ontario Electricity Financial Corporation and decreased fuel transportation costs for the quarter.

The improvement in the Fund’s distributable cash for the quarter was partially offset by the major maintenance outage during the quarter. The major maintenance program occurs every six years and required the facility to be shut down for 22 days during the quarter. Also impacting the change in distributable cash is the accrual of the Fund’s administration expenses on a quarterly basis to better align revenues and costs going forward. Prior to 2006, these costs were primarily recorded in the fourth quarter.

Investor enquiries
Harry Atterton
Chief Financial Officer
Macquarie Power Management Ltd.
Tel: (416) 607 5198
Email: harry.atterton@macquarie.com

Media Enquiries
Alex Doughty
Public Affairs Manager
Macquarie group
Tel: (212) 231-1710
Email: alex.doughty@macquarie.com