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Press release from Marketwire

Macquarie Power & Infrastructure Income Fund Hosts Investor Day and Provides Outlook for Fiscal 2011

- Positive Outlook for MPT's Businesses in 2011 - Strong Emphasis on Growth in the Year Ahead - Focus on securing a new contract for Cardinal

Thursday, December 02, 2010

Macquarie Power & Infrastructure Income Fund Hosts Investor Day and Provides Outlook for Fiscal 201116:15 EST Thursday, December 02, 2010TORONTO, ONTARIO--(Marketwire - Dec. 2, 2010) - Macquarie Power & Infrastructure Income Fund (TSX:MPT.UN)(TSX:MPT.DB.A) ("MPT" or the "Fund) today held its 2010 Investor Day in Toronto to highlight the continuing solid performance of its infrastructure businesses and to discuss MPT's objectives and outlook for 2011. The Investor Day webcast is available with accompanying slides on MPT's website in the Investor Centre section, which is located at http://www.macquarie.com/mgl/mpt/Investor+Center/Presentations+%26+Events."Over the past 12 to 18 months, we have significantly strengthened the Fund's platform for growth," said Michael Bernstein, President and Chief Executive Officer. "Our businesses are fundamentally sound and we have the financial flexibility to pursue growth opportunities that will increase the size, scale and value of our portfolio. Our mission is to deliver reliable income and a superior total return to our investors."Outlook for MPT in 2011 On January 1, 2011, MPT will convert into a publicly-listed, dividend-paying corporation named Macquarie Power and Infrastructure Corporation ("MPIC"). Units of MPT will be automatically exchanged on a one-for-one basis for common shares of MPIC, which will be listed on the Toronto Stock Exchange under the symbol "MPT".For 2011, MPT expects to achieve higher earnings before interest, taxes, depreciation and amortization ("EBITDA")(1) and funds from operations ("FFO")(2) compared with 2010, reflecting:The anticipated return to normal wind patterns and water flows at Erie Shores Wind Farm ("Erie Shores") and the Wawatay hydro power facility, respectively; The start of commercial operations at the Amherstburg Solar Park; Stable performance from the Cardinal gas cogeneration ("Cardinal") and Whitecourt biomass ("Whitecourt") power generation facilities; and Lower costs following the completion of the corporate conversion and the transition to International Financial Reporting Standards ("IFRS"). MPT's current distribution to unitholders of $0.66 per unit on an annualized basis is expected to be sustainable through 2014 and to result in an average payout ratio of approximately 75% over this period of time, based on MPT's existing portfolio and outlook and barring any significant unexpected events."Our three priorities in 2011 will be to maintain the quality and performance of our existing businesses, to build our portfolio through the acquisition of new core infrastructure assets, and to re-negotiate a new power purchase contract for Cardinal," said Mr. Bernstein. "With the release of the Ontario Ministry of Energy's directive to the Ontario Power Authority in late November, the OPA can now commence negotiations with the province's non-utility generators, including Cardinal. We expect to make significant progress on our re-contracting initiative in 2011 and look forward to providing increased visibility on Cardinal's long-term future to our investors over the course of next year."Outlook for Each Business in 2011Cardinal Revenue at Cardinal in 2011 is expected to be higher than in 2010 due to the continuing escalation in the Direct Customer Rate ("DCR"), which results in a higher power price under Cardinal's Power Purchase Agreement ("PPA"). It is currently expected that increased revenue will be offset by higher operating expenses due to an anticipated increase in TransCanada Pipelines Limited's gas transportation rate. Additionally, Cardinal will conduct a combustion inspection along with some additional maintenance during the second quarter of the year, resulting in approximately seven days of outage compared with four days of maintenance in the second quarter of 2010. While EBITDA and FFO are currently expected to be lower than in 2010 based on the expectation of a higher gas transportation rate, a favourable outcome on this rate would significantly improve Cardinal's financial performance in 2011. Whitecourt Revenue at Whitecourt is expected to be in line with 2010, primarily reflecting planned outages for maintenance and continuing low merchant power prices. Whitecourt is anticipated to incur slightly higher operating expenses as a result of its planned maintenance work. EBITDA and FFO from this facility are expected to be slightly lower than in 2010. Whitecourt is currently anticipated to have a continuing stable and adequate supply of wood waste fuel in 2011. Erie Shores Wind Farm Erie Shores is anticipated to return to more typical wind conditions in 2011, resulting in higher revenue than in 2010. Following further independent analysis of the wind resource at Erie Shores, MPT has revised its annual long-term production target for Erie Shores to 248,400 megawatt hours ("MWh") compared with 249,800 previously. Erie Shores is expected to incur significantly lower operating costs in 2011 following the internalization of the operations and maintenance ("O&M") function in 2010, which resulted in a number of one-time costs. Due to these factors, EBITDA and FFO from this facility are anticipated to be higher in 2011 than in 2010.Hydro Power Facilities MPT's hydro power facilities are expected to achieve their average annual long-term production of 166,360 MWh due to the anticipated return to improved hydrological conditions in 2011, resulting in higher revenue than in 2010. Higher revenue will also reflect the price escalators in certain of the facilities' PPAs. The hydro power facilities' operating costs are expected to remain flat with 2010. EBITDA and FFO from the hydro power facilities are expected to be higher in 2011 than in 2010.Amherstburg Solar Park Construction of the Amherstburg Solar Park continues to progress on schedule with the start of commercial operations targeted for June 2011. As a result, MPT will benefit from six months of EBITDA and FFO contribution from this new business.About Macquarie Power & Infrastructure Income Fund Macquarie Power & Infrastructure Income Fund's mandate is to invest in core infrastructure businesses in Canada and internationally. MPT aims to acquire and actively manage a high quality portfolio of long-life infrastructure businesses that will generate sustainable, long-term distributions and an attractive total return for investors. MPT's portfolio currently includes investments in gas cogeneration, wind, hydro and biomass power generating facilities, representing approximately 350 MW of installed capacity. MPT is also developing a 20 MW solar power facility in Ontario. MPT is managed by an affiliate of Macquarie Group Limited. Please visit www.macquarie.com/mpt for additional information.Disclaimer This news release is not an offer or invitation for subscription or purchase of or a recommendation of securities. It does not take into account the investment objectives, financial situation and particular needs of the investor. Before making an investment in the Fund, the investor or prospective investor should consider whether such an investment is appropriate to their particular investment needs, objectives and financial circumstances and consult our investment adviser if necessary. None of the entities noted in this news release is an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these entities 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 these entities.Certain of the statements contained in this news release are forward-looking and reflect management's expectations regarding the Fund's future growth, results of operations, performance and business based on information currently available to the Fund. Forward-looking statements are provided for the purpose of presenting information about management's current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. These statements use forward-looking words, such as "anticipate", "continue", "could", "expect", "may", "will", "estimate", "believe" or other similar words, and include, among other things, statements relating to the Fund's conversion to a dividend-paying corporation (the "Conversion"), the Fund's distributions and distribution policy; and the anticipated dividend policy of Macquarie Power and Infrastructure Corporation ("MPIC").The forward-looking statements in this news release are based on information currently available and what the Fund currently believes are reasonable assumptions, including the material assumptions for each of the Fund's assets set out in the Fund's 2009 Annual Report under the heading "Outlook" on page 42, as updated in subsequently filed Quarterly Financial Reports of the Fund (such documents are available on the Canadian Securities Administrators' System for Electronic Document Analysis and Retrieval ("SEDAR") at www.sedar.com). Other material factors or assumptions that were applied in formulating the forward-looking statements contained herein include the assumption that the business and economic conditions affecting the Fund's operations will continue substantially in their current state, including, with respect to industry conditions, general levels of economic activity, regulations, weather, taxes and interest rates and that there will be no unplanned material changes to the Fund's facilities, equipment or contractual arrangements. Although the Fund believes that it has a reasonable basis for the expectations reflected in these forward-looking statements, actual results may differ from those suggested by the forward-looking statements for various reasons, including risks related to: power infrastructure (operational performance; power purchase agreements; fuel costs and supply; contract performance; development risk; technology risk; default under credit agreements; land tenure and related rights; regulatory regime and permits; environmental, health and safety; climate change and the environment; force majeure; the Fund (changes in federal tax rules for flow-through entities; other tax-related risks; variability of distributions; geographic concentration and non-diversification; dependence on Macquarie Power Management Ltd. ("MPML" or the "Manager") and potential conflicts of interest; insurance; environmental, health and safety regime; availability of financing; unitholder dilution; volatile market price for units; international financial reporting standards; nature of units; unitholder liability). There are also a number of risks related to the Fund's Plan of Arrangement (the "Arrangement") providing for the conversion and to the activities of MPIC or the ownership of MPIC common shares, including risks relating to: changes to the Arrangement structure; the assessment of fair market value of the Fund units and MPIC common shares; the satisfaction of conditions precedent to the Arrangement; the receipt of regulatory approvals affecting the Arrangement; the realization of the anticipated benefits of the Arrangement; the impact on the Fund's unit price and future business operations of the Fund should the Arrangement not be completed; dilution of MPIC shareholders; the payment of dividends by MPIC, which are not guaranteed; and unpredictability and volatility of the common share price of MPIC.For a more comprehensive description of these and other possible risks, please see the Fund's Annual Information Form dated March 25, 2010 for the year ended December 31, 2009 as updated in subsequently filed Quarterly Financial Reports and other filings of the Fund with the Canadian securities regulators. These filings are available on SEDAR at www.sedar.com. The assumptions, risks and uncertainties described above are not exhaustive and other events and risk factors could cause actual results to differ materially from the results and events discussed in the forward-looking statements. These forward-looking statements reflect current expectations of the Fund as at the date of this news release and speak only as at the date of this news release. Except as may be required by law, the Fund does not undertake any obligation to publicly update or revise any forward-looking statements. (1) Standardized EBITDA follows the customary definition of net income adjusted for interest expense, income tax expense (recovery), depreciation and amortization. The Fund uses adjusted EBITDA to measure the performance of its assets prior to the impact of financing costs, taxes and charges for depreciation and amortization. Adjusted EBITDA is calculated as revenue less operating expenses and administrative expenses plus distributions from non-controlled investments. Adjusted EBITDA is reconciled to net income by adjusting standardized EBITDA for unrealized gains and losses on derivatives, foreign exchange gains and losses, loss on debt extinguishment, equity accounted income and distributions from equity investments.(2) The Fund uses FFO to measure the performance of its controlled and non-controlled assets net of financing costs. The Fund defines FFO as adjusted EBITDA less interest expense.FOR FURTHER INFORMATION PLEASE CONTACT: Michael SmerdonMacquarie Power & Infrastructure Income FundVice President and Chief Financial Officer(416) 607 5167michael.smerdon@macquarie.comORSarah Borg-OlivierMacquarie Power & Infrastructure Income FundVice President, Investor Relations(416) 607 5009sarah.borg-olivier@macquarie.com