Epic Capital Raising Closes Over Subscribed

MEDIA RELEASE 30May 2007

Epic Capital Raising Closes Over Subscribed

The Initial Public Offer of shares in Equity Partners Infrastructure Company No. 1 Limited (EPIC) has closed over subscribed.

Subscriptions have been accepted for approximately 95 million $1 shares. Recent favourable movements in foreign currency has resulted in $95m only being required rather than the $96.7m anticipated.

Chairman of EPIC, Don Walker, said he was “delighted with the result”. He noted in particular “outstanding support from retail investors for this innovative fund, through which investment portfolios can be diversified with tax efficiency into a significant overseas infrastructure asset not normally available to NZ investors”.

The seed asset of EPIC is a 1.22 per cent holding in Thames Water Plc,1 Britain's largest water utility company which is expected to deliver a first-year yield to EPIC investors of 9.1 per cent after tax2.

George Kerr, a director of EPIC's manager, Equity Partners Infrastructure Management Limited (EPIM), said that the strong demand reflected investor support for both the structure and quality of the offer.

"New Zealand retail investors are now in the unique position of having access to an indirect investment in Thames Water along with some of the largest pension funds in the world. We believe Thames Water will provide the strong base on which to build a portfolio of high quality infrastructure investments," Mr Kerr said.

ENDS

1 EPIC will hold shares in Kemble Water International Holdings Limited (“KWIHL”), a Guernsey incorporated special purpose vehicle that was established to offer a group of investors an indirect investment in Kemble Water Holdings Limited. Kemble Water Holdings Limited is a UK incorporated special purpose vehicle that holds, through subsidiaries, 100% of the equity capital of Thames Water PLC. Thames Water PLC operates a regulated water and wastewater company, and various other unregulated businesses. Please refer to the combined investment statement and prospectus.

2 This estimate is for dividends expected to be declared in respect of the financial year ending 31 March 2008 and is calculated on the issue price and based on certain assumptions that could prove to be incorrect. This could result in the actual yield being lower than stated. For more information see also “New Zealand Taxation Summary” in the combined investment statement and prospectus.

© Scoop Media