News Release

Macquarie Power Income Fund to Complete Acquisition of Interest in Leisureworld

TORONTO, October 18, 2005 – Macquarie Power Income Fund (TSX: MPT.UN) (the “Fund”) announced today that the previously-announced acquisition by the Fund of a 45% indirect equity interest in the long-term care business of Leisureworld Inc. and associated entities (Leisureworld) will close today, October 18, 2005.

The completion of the Leisureworld acquisition was conditional upon receipt of third party regulatory approvals, including from the Ontario Ministry of Health and Long Term Care. All approvals required for the closing of the acquisition have now been received.

On September 30, 2005 the Fund closed its offering of 5,630,000 subscription receipts (the “Subscription Receipts”) at a price of $11.50 per subscription receipt on a bought deal basis to a group of underwriters consisting of TD Securities Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc., RBC Dominion Securities Inc. and Westwind Partners Inc.

The Subscription Receipts are traded on the Toronto Stock Exchange under the symbol “MPT.R” and will be delisted at the close of business on October 18, 2005. The Subscription Receipts will be exchanged for units of the Fund (“Units”) on a one-for-one basis, effective at 5:00 p.m. (Toronto time) on October 18.

As the Subscription Receipts and the Units trade in the book-entry system and no individual certificates are issued, holders of the Subscription Receipts need not take any action in order to receive the Units to which they are entitled. Customer confirmations with respect to these Units will be entered through the book-entry system no later than Thursday, October 20, 2005. Following the exchange of Subscription Receipts for Units, the holders of the Subscription Receipts at the time of the exchange will be entitled to receive the previously-announced cash distribution of $0.07917 per Unit for the month of September 2005 to unitholders of record on September 30, 2005 as if they had been holders of Units on September 30, 2005. The distribution will be paid on October 31, 2005.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities described herein in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification or registration under applicable securities laws of any such jurisdiction.

The Subscription Receipts and the underlying Units have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement of such Act.

Macquarie Power Income Fund is an unincorporated limited purpose trust which owns a 156 MW gas-fired cogeneration power station located in Cardinal, Ontario and will own a 45% interest in Ontario long-term care provider Leisureworld Inc. following close of the acquisition.

The Fund’s units are listed on the Toronto Stock Exchange under the symbol MPT.UN. The Fund is managed by Macquarie Power Management Ltd., a wholly-owned subsidiary of Macquarie Bank Limited and a member of the Macquarie group.

More information on Macquarie Power Income Fund can be found at the Fund’s website,

For further information, please contact:

Bob Rollinson
Chief Executive Officer
Macquarie Power Management Ltd.
Tel: (416) 607-5155

Alex Doughty
Corporate Communications Macquarie group
Tel: (212) 231-1710