[July 4, 2004 - Hong Kong] - Cheung Kong Infrastructure Holdings Limited ("CKI" or the "Company") has become the biggest shareholder of the Lane Cove Tunnel Company Pty Ltd ("LCTC") in Australia, after acquiring a 40% equity stake. The consideration for the acquisition is A$239 million (HK$1.3 billion).

In announcing the acquisition, Mr H L Kam, Group Managing Director of CKI, said: "This marks CKI's second major toll road project in Australia, in addition to our investment in Sydney's Cross City Tunnel which has just celebrated its breakthrough and is expected to commence operation ahead of schedule. We have been pursuing quality infrastructure and transportation projects globally and this acquisition represents another important milestone for CKI."

The LCTC was awarded the concession to build and operate the Lane Cove Tunnel (the "Tunnel") and the Falcon Street Ramp in Sydney, Australia in December, 2003. Total investment for the project is approximately A$1.7 billion and project financing has been completed. The concession is for a period of 30 years excluding construction period, and double-digit return is expected.

The Lane Cove Tunnel will run under Epping Road and is poised to become a crucial part of the link between north-western and downtown Sydney. The Tunnel is expected to be completed in mid-2007, while the existing service on Epping Road will be reduced to one general traffic lane in each direction by the end of 2007. The average daily traffic of the Lane Cove Tunnel is expected to be well over 100,000 when operations commence.

Passenger car tolls for the Tunnel and the Falcon Street Ramp will be A$2 and A$1 (at 1999 prices) respectively, and these prices are subject to inflation adjustment. Tolls will be collected by an advanced electronic tolling system.

With a 40% equity stake, CKI will be the largest among LCTC's other shareholders, which include AMP's Infrastructure Equity Fund, AMP Capital Investors, MTAA Super, Westscheme, John Holland Pty Ltd, Theiss Pty Ltd, and the Li Ka Shing (Overseas) Foundation.

Mr Kam commented, "CKI is pleased to acquire this premium asset. The Lane Cove Tunnel is strategically located - it is an integral part of the link that connects the north-western areas of Sydney with the city center. Currently, severe traffic congestion occurs on Epping Road during rush hour in the mornings and evenings, with average daily traffic figures amounting to about 85,000. The situation is expected to get tighter as more people move to live in the popular north-western suburban residential area, which at present has a population of around one million. The demand for an efficient road system serving the area is eminent. It is expected that the Lane Cove Tunnel could reduce current traveling time from 25-30 minutes to 5-6 minutes."

"Construction for the Lane Cove Tunnel is already in progress and project finance has been completed. The Tunnel is poised to promise a long-term and sizeable return to CKI - in line with the Company's ethos of investing in low-risk and high-return projects. We are pleased that the two major transport infrastructure projects built to enhance traffic in a significant way in Sydney are included in CKI's portfolio - the Cross City Tunnel will be a key thoroughfare in downtown; and the Lane Cove Tunnel will be an important link that connects the populated north-western district to the centre of town."

About CKI

CKI is the largest publicly listed infrastructure company in Hong Kong with diversified investments in Energy Infrastructure, Transportation Infrastructure and Infrastructure Related Business. Operating in Hong Kong, Mainland China, Australia, the United Kingdom, Canada and the Philippines, it is a leading player in the global infrastructure arena.

The Lane Cove Tunnel will be strategically located, connecting the populated north-western areas of Sydney with the city centre. Once completed, the Tunnel will help to drastically enhance traffic on Epping Road and improve convenience for road users, cutting the current traveling time of 25-30 minutes to 5-6 minutes. From left to right, Mr Ian Hunt, Chief Executive Officer of LCTC, Mr H L Kam, Group Managing Director of CKI, and Mr Peter Tulloch, Director of LCTC, observe the rush hour congestion on Epping Road in the leafy Sydney suburb of Lane Cove at 7:45 a.m.

CKI's portfolio includes two of Sydney's major transport infrastructure projects built to enhance traffic - the Cross City Tunnel will be a key thoroughfare in downtown Sydney, while the Lane Cove Tunnel will be an integral part of the link that connects the popular north-western suburban area, which has a population of around one million, with the city center.