News

The Fund believes that it should be considered a qualified foreign corporation for U.S. tax purposes and that dividends (as computed under U.S. tax principles) paid to its individual U.S. Unitholders should be considered “qualified dividends” (assuming other investor requirements are met) under the Jobs and Growth Tax Relief Reconciliation Act of 2003 for U.S. federal income tax purposes. The Fund’s Units more likely than not are properly classified as equity in a corporation, rather than as debt, for U.S. federal income tax purposes. As such, the portion of the distributions that are considered qualified dividends should be eligible for the reduced rate of tax applicable to certain long-term capital gains. The portion of the Fund’s distributions that is considered a dividend for U.S. income tax purposes is determined based upon the greater of the Fund’s current or accumulated E&P as determined in accordance with U.S. income tax law.

The Fund provides information in relation to its E&P position for U.S. tax purposes on a voluntary basis. This information is prepared by an external tax advisor on behalf of the Fund. Neither the United States Congress, nor the Treasury, nor the judiciary has provided a comprehensive definition of E&P although section 312 of the Internal Revenue Code, and the regulations thereunder, address certain aspects of its computation. Taxpayers seeking to compute E&P must therefore rely on inferences based on the function of E&P and its underlying theory, rather than on explicit tax authority. Accordingly, this information is general in nature and is not exhaustive of all possible U.S. tax considerations. It is not intended to constitute legal or tax advice to any holder or potential holder of the Fund’s Units. It is strongly recommended that U.S. Unitholders consult with their financial or tax advisors as to the tax consequences of holding Units and concerning the tax consequences of this information that is specific to their own circumstances, including any state, local or foreign tax considerations.

Canadian resident taxpayers should note that the information provided below has no impact on previously disclosed Canadian tax information.

Tax Information for 2009
With respect to cash distributions paid in 2009 to U.S. Unitholders, 68% should be reported as either non-taxable return of capital or capital gain for U.S. federal income tax purposes. This portion of the cash distribution should be a non-taxable return of capital to the extent of the Unitholder’s U.S. tax basis in the units and taxable as a capital gain where it is in excess of the Unitholder’s U.S. tax basis in the units. Thirty-two percent of the cash distributions paid in 2009 to U.S. Unitholders should be reported as qualified dividends.

Macquarie Power & Infrastructure Income Fund is not an authorised deposit taking institution for the purposes of the Banking Act (Cth) 1959 and Macquarie Power & Infrastructure Income Fund’s obligations do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 (MBL). MBL does not guarantee or otherwise provide assurance in respect of the obligations of Macquarie Power & Infrastructure Income Fund.

Revised Tax Information for 2008 and 2007
The Fund also provided revised tax information for 2008 and 2007, reflecting certain corrections to the Fund’s previous E&P estimates following identification of an error on the part of the Fund’s external tax advisor in 2008 and 2007.

For 2008, 34% of distributions received by U.S. Unitholders should be treated as qualified foreign dividends and 66% should be treated as a return of capital. The tax information previously provided for 2008 indicated that 60% of distributions received by U.S. Unitholders should be treated as qualified foreign dividends and that 40% should be treated as a return of capital.

For 2007, 46% of cash distributions to U.S. Unitholders should be treated as qualified foreign dividends and 54% should be treated as a return of capital. The tax information previously provided for 2007 indicated that 70.2% of distributions received by U.S. Unitholders should be treated as qualified foreign dividends and that 29.8% should be treated as a return of capital.

Notice Pursuant to Internal Revenue Service Circular 230
Pursuant to U.S. Treasury Department Circular 230, unless expressly stated otherwise, any tax advice contained in this news release is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties; or (ii) promoting, marketing or recommending to another party any matter(s) addressed herein.

About Macquarie Power & Infrastructure Income Fund
Macquarie Power & Infrastructure Income Fund’s mandate is to invest in core infrastructure businesses in Canada and internationally. MPT aims to acquire and actively manage a high quality portfolio of long-life infrastructure businesses that will generate sustainable, long-term distributions and an attractive total return for investors. MPT’s portfolio currently includes investments in gas cogeneration, wind, hydro and biomass power generating facilities, representing approximately 350 MW of installed capacity. MPT is also currently developing a 20 MW solar power facility in Ontario. MPT is managed by an affiliate of Macquarie Group Limited. Please visit www.macquarie.com/mpt for additional information.

Forward-looking Statements
Certain of the statements contained in this news release are forward-looking and reflect management’s expectations regarding the Fund’s future growth, results of operations, performance and business based on information currently available to the Fund. Forward-looking statements are provided for the purpose of presenting information about management’s current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. These statements use forward-looking words, such as “anticipate”, “continue”, “could”, “expect”, “may”, “will”, “estimate”, “believe” or other similar words. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. The forward-looking statements in this news release are based on information currently available and what the Fund currently believes are reasonable assumptions, including the material assumptions for each of the Fund’s assets set out in the Fund’s annual, quarterly and other filings with the Canadian Securities Administrators’ System for Electronic Document Analysis and Review (SEDAR) at www.sedar.com. Other material factors or assumptions that were applied in formulating the forwardlooking statements contained herein include the assumption that the business and economic conditions affecting the Fund’s operations will continue substantially in their current state, including, with respect to industry conditions, general levels of economic activity, regulations, weather, taxes and interest rates and that there will be no unplanned material changes to the Fund’s facilities, equipment and contractual arrangements.

Although the Fund believes that it has a reasonable basis for the expectations reflected in these forward-looking statements, actual results may differ from those suggested by the forward-looking statements for various reasons, including risks related to: operational performance; power purchase agreements; fuel costs and supply; contract performance; default under credit agreements; land tenure and related rights; regulatory regime and permits; force majeure; changes in federal tax rules for flow-through entities; other tax-related risks; variability of distributions; geographical concentration and non-diversification; dependence on the manager and potential conflicts of interest; insurance; environmental, health and safety regime; availability of financing; unitholder dilution; volatile market price for units; international financial reporting standards; nature of units; and unitholder liability. The assumptions, risks and uncertainties described above are not exhaustive and other events and risk factors could cause actual results to differ materially from the results and events discussed in the forward-looking statements. These forward-looking statements reflect current expectations of the Fund as at the date of this news release and speak only as at the date of this news release. The Fund does not undertake any obligation to publicly update or revise any forward-looking statements except as may be required by applicable law.