Macquarie Infrastructure Company Closes Acquisition of Mercury Air Centers

NEW YORK, Aug. 14 /PRNewswire-FirstCall/ -- Macquarie Infrastructure Company (NYSE: MIC), a market leader in the ownership and operation of infrastructure businesses in the U.S., announced that it has completed its previously disclosed purchase of a network of 24 fixed base operations ("FBOs") known as Mercury Air Centers ("Mercury"). MIC completed the acquisition from Allied Capital Corporation on August 9.

The acquired FBOs will be combined with MIC's existing Atlantic Aviation sites. Including the Mercury network Atlantic will operate a total of 67 FBOs, the largest such network in the U.S.

"The addition of these 24 sites further solidifies our already strong position in the FBO market", said Peter Stokes, CEO of Macquarie Infrastructure Company. "With 67 FBOs located at some of the most popular general aviation destinations in the country, we expect to see continued strong performance from this segment of our business."

The Company paid an aggregate $428.7 million, including integration and transaction related costs, for 89% of the equity and 100% of the common stock of Mercury. Included in the purchase price was $2.0 million for an option to purchase preferred shares representing the remaining equity and a $6.5 million dividend on those shares. If the Company exercises its option over the preferred shares it will do so during the October, 2007 exercise period. The exercise of the option would result in an additional outlay of $28.4 million.

MIC funded a portion of the acquisition with $216.7 million of equity raised in its June, 2007 follow-on offering of LLC interests. The remainder was funded with a $192.0 million 2-year term loan and cash. The Company intends to refinance all of the debt facilities related to its airport services business, including the term loan, into a single facility.

The FBOs will be rebranded and integrated into the Company's existing Atlantic Aviation operations. The integration is expected to take place over a period of 12 to 18 months. MIC will report the financial results of the new facilities as a component of its airport services business segment.

FBOs provide fuel and fuel-related services, terminal services and aircraft hangarage to the general aviation community. Including the Mercury sites, more than 70% of Atlantic's FBOs operate as the sole or one of two FBOs on their respective airport.

About Macquarie Infrastructure Company

MIC owns, operates and invests in a diversified group of infrastructure businesses, which provide basic, everyday services, to customers in the United States. Its businesses consist of an airport services business, a fifty percent indirect interest in a bulk liquid storage terminal business, a gas production and distribution business, a district energy business, and an airport parking business. The Company is managed by a wholly-owned subsidiary of Macquarie Bank Limited. For additional information, please visit the Macquarie Infrastructure Company website at www.macquarie.com/mic. MIC-G