Macquarie Bank to Acquire Aquarion Water Company

BRIDGEPORT, Conn.--()--Feb. 24, 2006--Macquarie Bank Limited of Australia and the U.K.-based Kelda Group plc today announced that Macquarie and an affiliate entity will acquire Aquarion Company for $860 million.

Macquarie is one of the largest and most experienced global investors and managers of infrastructure assets. Macquarie also is a long-term investor and manager of important community assets. In recent years Macquarie and its affiliated entities have invested in and continue to manage projects such as utilities, ports, tunnels, airports, and toll roads, and have a strong and growing presence in the U.S.

Commenting on the transaction, Aquarion Company President and Chief Executive Officer Charles V. Firlotte said, "I'm delighted to announce this agreement, as it is great news for Aquarion's customers and employees. Macquarie is a well-respected organization and an international leader in infrastructure investment," he added. "Of particular interest for Aquarion employees and customers is Macquarie's depth of experience in the regulated utility arena. Macquarie and Aquarion's shared commitment to deliver high-quality water, customer service excellence, and operating efficiency constitute an exciting and winning development for us all," Firlotte said.

The acquisition is subject to regulatory approval, including from the Public Utility Commissions in Connecticut, New York and New Hampshire. Closing of the transaction is expected to occur during the fourth quarter of 2006.

Aquarion Company's principal business is public water supply. Through its Aquarion Water Company subsidiaries, it is one of the 10 largest investor-owned water utilities in the U.S., serving 219,400 homes and businesses, or approximately 677,000 people, in 53 Connecticut, New York, Massachusetts, and New Hampshire communities. Aquarion Water Company of Connecticut provides high-quality water to 176,000 customers, or more than 587,000 people, in 36 cities and towns.

NOTES TO EDITORS:

Macquarie

The Macquarie Bank Group provides specialist investment, advisory and financial services in select markets around the world, with more than 7,600 people in 23 countries. The Group consists of Macquarie Bank Limited, the leading Australian investment bank, and its worldwide affiliates. Macquarie Bank has a market capitalization of $10.8 billion (USD) as of January 23, 2006.

Macquarie is one of the largest global investors and managers of infrastructure assets, managing total assets of approximately $85 billion (USD) around the world through a range of investments. Infrastructure investments managed by Macquarie include assets in water, energy distribution and generation, transportation, airports, social infrastructure, and telecommunications sectors in 11 countries including the United States.

Macquarie brings the benefits of global resources, relationships and expertise to its infrastructure businesses and the communities they serve.

Contacts

Aquarion
Adrienne Vaughan, 203-336-7624

Contacts

Aquarion
Adrienne Vaughan, 203-336-7624