RARE Infrastructure Limited

New Fund Manager for Listed Infrastructure

Press Release

New Fund Manager for Listed Infrastructure

RARE Infrastructure (RARE) has been established as an value-based boutique funds manager. RARE will manage investments in listed infrastructure securities to seek to maximise investors’ Risk Adjusted Returns to Equity – R.A.R.E.

“RARE has been established to capitalise on the development of infrastructure as a distinct and growing asset class” says Principal, Nick Langley.

”We strongly believe this asset class will appeal to investors that are looking for stable, inflation-hedged returns”. Langley says RARE has identified growing demand for:

• Infrastructure, an asset class with significant new investment opportunities
• Returns with a high income component and low correlations to other asset classes
• An international portfolio diversified across geographic regions and infrastructure & utility sectors

“RARE believes buying listed global infrastructure securities provides the benefit of liquidity and the ability to gain exposure more efficiently than other, direct investment, routes” says Langley.

RARE’s distinguishing features are:

Independence
RARE is independent of any bank, broker or institutional investor.

Internationally Experienced Team
RARE has one of the largest, specialist funds management teams dedicated to investing in global listed infrastructure securities. The team has six senior, professional staff, with a combined:

• 54 years global infrastructure sector experience; and
• 22 years funds management experience.

The Investment Committee, Richard Elmslie and Nick Langley, the principals, and George Raftopulos, Senior Portfolio Manager, have between them 23 years global infrastructure experience and 16 years funds management experience.

“We believe that the specialist knowledge and global networks of this team together with the depth of sector and funds management experience positions RARE as a leading investor in this market” says Elmslie.

RARE aligned with ASX-Listed Treasury Group
RARE has been established as a business of the Treasury Group Investment Services Limited (“TIS”) in conjunction with Richard Elmslie, Nick Langley and George Raftopulos. TIS is a wholly owned subsidiary of Treasury Group Limited (“Treasury Group”), which invests in and supports boutique fund managers. Treasury Group Chairman, Mike Fitzpatrick said “Treasury Group has brought to market an independent team which will be managing portfolios in one of the fastest growing asset classes in the world. We are particularly pleased to be associated with individuals whose depth of experience in this market is second to none.”

The funds management businesses associated with Treasury Group managed $10.75 billion as at 31 March 2006.

For further information please contact:
Richard Elmslie or Nick Langley on +61 2 9397 7300

Alternatively, further information can be found at our website:www.RAREinfrastructure.com
Background Information:RARE Infrastructure (‘RARE’) is a business of Treasury Group Investment Services Limited (“TIS”). RARE’s investment focus is in listed and unlisted investments in global infrastructure securities. RARE’s business objective is to capitalise on the development of infrastructure as a separate and distinctasset class and to seek to provide investors with superior Risk Adjusted Returns to Equity, R.A.R.E.

Who is RARE

The RARE investment team are specialists in valuing global infrastructure businesses. The investment team has over 54 years global infrastructure experience. It is this experience and expertise that, combined, enables the RARE team to identify, analyse and invest in the securities of global infrastructure businesses.

TIS is 100% owned by Treasury Group Limited, an ASX-listed company.

TIS has appointed RBC Dexia Investor Services Australia Pty Limited to undertake custody, settlement and client record keeping functions.

RARE Philosophy
RARE’s investment philosophy is that active management of investments in listed infrastructure assets provides the opportunity to achieve superior medium to long term returns and attractive risk return characteristics for investors.

These assets have strong investment characteristics that RARE assesses as being well suited for medium to long term investments. RARE believes that buying these assets in a listed form provides the benefit of liquidity and the
opportunity to construct a diversified portfolio. RARE’s analysis indicates that these assets have resilient and predictable cash flows, and a low correlation to global equities.

Underlying this philosophy is our
i. bottom up value approach to assessing securities, as discussed in RARE’s Investment Process
ii. approach to portfolio management which provides the opportunity to achieve a diversification of investments across geographic regions, sectors and securities aimed at reducing risk and spreading returns.

The RARE Team
The RARE team compliments each other in terms of skills and experience, encompassing corporate advisory, funds management and brokering approach to investments.

Members of the team have previously worked together, in particular

• Elmslie previously worked with Raftopulos and Langley
• Raftopulos and Maywald previously worked together

All team members have worked in organisations that applied a similar valuestyle approach to assessing investment

Richard Elmslie, Principal

• BCom, CA, FFin
• 16 years global infrastructure experience, including gas, electricity, water, telecoms, communications and airports
• Australia, UK, New Zealand, USA, Canada, Asia, Japan
• Previously Head of Power and Joint Head of Infrastructure at UBS Investment Bank

Nick Langley, Principal

• BCom, LLB
• Eight years infrastructure experience, including gas, electricity,telecoms networks, rail, airports, toll roads and social infrastructure
• Four years with AMP Capital’s infrastructure funds management team
• Most recently CFO of DUET, a A$1b+ ASX listed trust
• Worked with Richard Elmslie 1998-2000 at ABN AMRO Sydney

George Raftopulos, Senior Portfolio Manager

• BEconSc, MBA, GAICD
• 23 years experience – equities research and funds management
• Last ten years funds management experience with UBS Brinson, Lazard Freres and Constellation Capital
• Senior Research Analyst with BZW, Macquarie, Barings and research sales with CSFB
• Career research coverage has included all sectors in Australia, including infrastructure and utilities and global responsibility with Lazards

David Maywald, Senior Investment Analyst

• BCom/BEcon, Grad Dip App Fin & Investment, CFA
• Six years funds management experience, including Bankers Trust Fund Management and Constellation Capital
• Researched domestic and international stocks, and has undertaken currency strategy and dealing
• Covered a variety of infrastructure sectors including gas, electricity ports, road, airports and communications
• Worked with George Raftopulos, 2003-2005, at Constellation Capital

Sarah Shaw, Senior Investment Analyst

• BCom, LLB
• Seven years with Dresdner Kleinwort Wasserstein, based in London covering telecom utilities
• Head Analyst for Asia Pacific (ex. Japan) region, US RBOCs and Latin America
• Head Analyst for cross regional theme analysis in global sector
• No. 1 team in Extel 2005 Survey

Rod Chisholm, Senior Investment Analyst

• BA (Cambridge), MBA (AGSM)
• Six years (three years in Research) with HSBC, based in London covering telecom utilities
• Head Analyst for top ranked Pan European fixed line telecoms team
• Previously employed in HSBC’s investment bank covering telecoms, utilities and communications

About Treasury Group
Treasury Group Limited (“Treasury”), is listed on the Australian Stock exchange (Ticker: TRG). Its business is to invest in, and support, boutique fund managers.

As at 31 March 2006 Treasury has interests in six boutique fund managers, who together control $10.75 billion of assets.

Treasury Group Investment Services Limited (“TIS”) is a 100% subsidiary of Treasury. TIS has its own in-house compliance and risk management team and marketing staff and the backing of its parent, Treasury. Over the past three years, TIS has been providing these services to the other companies in which Treasury has an interest.