MAp Agreement with Ferrovial Regarding Sydney and Bristol Airports

Macquarie Airports (MAp) notes that today it has entered into an agreement with Ferrovial Infraestructuras S.A. (Ferrovial) in relation to conditional put and call options (Options) over Ferrovial's interests in Sydney and Bristol airports.

Under the terms of the agreement, the Options may only be exercised if the Ferrovial Consortium acquires a controlling interest in BAA plc. Consistent with MAp's December 2005 valuations, the price at which MAp has an option to acquire Ferrovial's 20.9% interest in Sydney Airport is approximately A$1.009 billion less any distributions paid after today and the price at which MAp may acquire Ferrovial's 50% interest in Bristol Airport is approximately EUR106 million less any distributions paid after today. Exercise of the Options is subject to the existing shareholder pre-emption arrangements. Ferrovial may exercise its put options at a 7.5% discount to the MAp December 2005 valuations less any distributions paid by the airports after today. No fees have been paid for the Options which expire after the earlier of 90 days from the completion of an acquisition of BAA by the Ferrovial Consortium or 12 months from the date of the agreement.

Given the conditional nature of the Options, MAp will provide the market with an update on the exercise of the Options, including the appropriate funding strategy, if, and when, the conditions are satisfied.

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