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Infratil Acquisition of 6.3% Stake in Energy Developments

23 Mar 2005

Infratil announces that it has acquired a further 9 million ordinary shares (6.3%) in Australian listed energy company, Energy Developments Limited. The purchase price is A$4.00 per share.

Energy Developments is a leader in the collection of landfill waste gases and coal mine waste gases and use of these gases for power generation. This makes a significant contribution to lowering greenhouse gas emissions from these sources. Increasingly such projects are receiving premium revenues from specific greenhouse policy initiatives in Energy Developments' key Australian and European segments.

Energy Developments is also a leading provider of regional power supplies to remote communities and mining projects across Australia, utilising both gas turbine and reciprocating engine solutions.

Infratil now holds 19.9% of the ordinary shares in Energy Developments.

Infratil has acquired the shares from Orion New Zealand Limited, the Christchurch based electricity network company.

Orion has also instructed Goldman Sachs JB Were to place 5.13 million of its shares in Energy Developments and Infratil has provided a financial underwrite of this placement for Orion at A$3.60. Also, if at any time between 1 April 2005 and 14 October 2005, Orion decides to sell its remaining 4.25 million shares (3%) Infratil has agreed to a further financial underwrite of that placement at an escalating price. The initial financial underwrite price is A$3.60 (subject to adjustment for dividends & capital returns) per share escalating on a straight line basis to A$4.18 per share as at 30 September 2005.

Infratil first acquired 10% of the shares in Energy Developments in July 2002. Since that time it has, through market purchases and participation in placements by Energy Developments, acquired a further 3.7% of the shares.

The decision to move to 19.9% confirms Infratil's confidence in the management and Board of Energy Developments and the sectors in which Energy Developments operates.

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