Macquarie Power & Infrastructure Income Fund
TSX : MPT.UN
TSX : MPT.DB

Macquarie Power & Infrastructure Income Fund

August 27, 2007 17:28 ET

Macquarie Power & Infrastructure Income Fund and Leisureworld Announce Acquisition of Long-Term Care Home Portfolio from Counsel Corporation

- Adds seven long-term care homes to Leisureworld's portfolio - Expands Leisureworld's footprint with minimal geographic overlap - Supports long-term stability and sustainability of Leisureworld's cash flow

TORONTO, ONTARIO--(Marketwire - Aug. 27, 2007) - Macquarie Power & Infrastructure Income Fund (TSX:MPT.UN)(TSX:MPT.DB) (the "Fund" or "MPT") today announced that Leisureworld Senior Care LP and its affiliates ("Leisureworld"), in which MPT owns a 45% interest, have signed an agreement with a wholly-owned subsidiary of Counsel Corporation (TSX:CXS), to acquire its portfolio of seven long-term care ("LTC") homes for approximately $67 million plus transaction and refurbishment costs. The portfolio of Class C homes includes 1,127 beds and is currently managed by Diversicare Canada Management Services Co., Inc. ("DCMS"). The acquisition is conditional upon regulatory approval from the Ontario Ministry of Health and Long-Term Care ("MOHLTC").

"Counsel's long-term care homes are complementary to Leisureworld's current portfolio and fit with MPT's focus on essential infrastructure assets that offer a stable and predictable return," said Gregory Smith, President and Chief Executive Officer of MPT. "This acquisition enhances Leisureworld's market position as well as the long-term sustainability of Leisureworld's cash flow. For MPT investors, this transaction is expected to be accretive to MPT's distributable cash per unit in the first full year of operations and to deliver an attractive total return."

Counsel's LTC homes are located in Scarborough, Mississauga, Streetsville, North York, Brampton and Ingersoll, which are communities where there is stable demand for long-term care. The portfolio employs more than 1,200 people and achieved average annual occupancy of 90.48% for the year ended December 31, 2006. More than 60% of fiscal 2006 revenue was funded by the MOHLTC. In 2006, DCMS received the National Quality Institute's Canada Award for Excellence in Quality.

Mr. Smith continued, "Leisureworld will work closely with Counsel and DCMS to integrate the businesses and maintain continuity in the care of residents. Leisureworld's focus on high quality care and exceptional facilities, combined with the dedicated employees at Counsel's LTC homes, will help to ensure that each home in the portfolio operates to the highest possible standard."

Upon the completion of the transaction, Leisureworld will own or manage approximately 5.6% of all LTC homes in Ontario, making it the third largest owner and operator of LTC homes in the province. Class A homes will represent 52.4% of Leisureworld's portfolio, Class B homes, 6.9% and Class C homes, 40.7%. Leisureworld expects the portfolio to deliver continuing stable cash flow growth over time due to predictable government funding and is encouraged by the MOHLTC's recently announced capital renewal program for the province's 35,000 Class B and C beds. This program, which is expected to commence in 2008, will provide additional funding for older Class B and C homes to attain Class A standards, thereby improving the overall quality of accommodation and comfort for residents.

Leisureworld also remains well positioned to pursue new LTC licences and acquisitions that will further diversify the portfolio as demand for long-term care in Ontario continues to increase. According to the Ontario Ministry of Finance, the 75-plus age group is expected to be among the fastest-growing age groups over the next 20 years, increasing from 6% of the population in 2005 to 10% of the population in 2031.

Leisureworld has established a $75-million facility in connection with the acquisition. MPT and Macquarie International Infrastructure Fund ("MIIF"), which owns the remaining 55% of Leisureworld, will evaluate the long-term capital structure of Leisureworld and anticipate making an equity contribution of up to $15 million within the first 12 months following completion of the transaction.

About Macquarie Power & Infrastructure Income Fund

Macquarie Power & Infrastructure Income Fund invests in essential infrastructure assets with an emphasis on power infrastructure. MPT's strategy is to acquire and actively manage a diverse, high quality portfolio of infrastructure assets to improve their financial performance and provide growing and sustainable distributions to unitholders. MPT's portfolio includes investments in gas cogeneration, wind, hydro and biomass power generating facilities, totalling 459 MW of installed capacity, and a 45% indirect interest in Leisureworld Senior Care LP, a leading provider of long-term care, or social infrastructure, in Ontario. MPT is managed by a wholly-owned subsidiary of Macquarie Bank Limited and a member of the Macquarie group. Please visit www.macquarie.com/mpt for additional information.

Forward-looking Statements

Certain statements in this news release may constitute forward-looking statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results to be materially different from any future results expressed or implied by such forward- looking statements. Forward-looking statements use such words as "may", "will", "anticipate", "believe", "expect", "plan" and other similar terminology. These statements reflect current expectations regarding future events and operating performance and speak only as of the date of this news release. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements disclosed in MPT's filings with Canadian securities regulatory authorities.

The forward-looking statements contained in this news release are based upon information currently available and what Macquarie Power Management Ltd. (the manager of MPT) currently believes are reasonable assumptions. However, MPT and its manager cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this news release and MPT and its manager assume no obligation to update or revise them to reflect new events or circumstances. MPT and its manager caution readers not to place undue reliance on any forward-looking statements, which speak only as of the date made.

Macquarie Power & Infrastructure Income Fund is not an authorised deposit taking institution for the purposes of the Banking Act (Cth) 1959 and Macquarie Power & Infrastructure Income Fund's obligations do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542. Macquarie Bank Limited does not guarantee or otherwise provide assurance in respect of the obligations of Macquarie Power & Infrastructure Income Fund.

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