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Infratil IFTWB Warrants

5 Jun 2009

The Board of Infratil has determined to put to Warrantholders who hold IFTWB warrants (Warrants) a proposal for the modification to the terms of those Warrants.

Attached is a notice of special meeting of Warrantholders setting out a resolution which will be put to a vote of Warrantholders on 25 June.

At present each IFTWB entitles a holder to purchase one Infratil share for $1.62. This right must be exercised before 10 July 2009 and if not exercised they expire valueless. The Company is responding to feedback from some Warrantholders that it would be helpful if there was greater payment flexibility.

The proposal, if supported by Warrantholders, provides a further choice. It will allow a Warrantholder to pay the consideration for the Infratil share in two instalments, being 55 cents payable by 10 July 2009, with a balance of $1.12 payable by 21 May 2010.

The value of this two-step payment has been assessed by Infratil to be neutral with the current single $1.62 payment, but it will make it easier for some Warrantholders, and is therefore expected to increase the number of Warrants exercised.

If supported by Warrantholders on 25 June 2009, it will mean that holders of IFTWB will have three available courses of action open to them (in addition to selling the IFTWB’s on market):

1.  Do nothing and have the Warrants lapse.

2.   Pay $1.62 by 10 July 2009 and receive an Infratil share which will rank equally with all other Infratil shares (including in respect of the 3.75cps dividend to be paid on 29th July 2009).

3.  Pay 55 cents by 10 July 2009 and a further $1.12 before 21 May 2010. Someone who takes this course will not receive an Infratil share until the second payment is made and consequently will not receive dividends until that occurs.

The Infratil directors believe adding the instalment payment option will be of benefit to Warrantholders and shareholders and will increase the prospect of Warrants being exercised.

Infratil Warrantholders who are uncertain about which course of action best suits them should contact their financial advisers.

In addition to the proposal to allow payment of the exercise price in two instalments, Infratil will pay brokerage at a rate of 0.75% on the exercise price paid (up to a maximum of $750 for any one account).

It is recognised that many Warrantholders will require assistance from their brokers and consequently it is considered fair that some compensation is provided.

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