January 24, 2005

The CPP Investment Board today announced two new infrastructure commitments, including its first infrastructure co-investment. The CPP Investment Board’s newest commitments are:

•    €200 million commitment to the Macquarie European Infrastructure Fund. The fund, managed by a member of the Macquarie Group, will invest in European infrastructure assets including electricity and gas transmission and distribution networks, water and sewerage companies, rail, airports, communications infrastructure and toll roads.

•    £66 million commitment to co-invest alongside the Macquarie European Infrastructure Fund in the Wales & West gas distribution network. This is a regulated natural gas distribution business serving Wales and the South West of England. This investment is expected to close in the second quarter of this year subject to regulatory approval.

“Infrastructure, which is a relatively new asset class for us, has higher expected returns than bonds and is a good hedge against inflation,” said David Denison, President and CEO, CPP Investment Board. “This is the type of regulated asset we are ideally looking for and are disappointed that there are so few domestic opportunities that meet our investment criteria.”

The Wales & West gas distribution network is a regulated gas distribution business comprising approximately 34,000km of gas distribution pipelines located in Wales and the South West of England. The network’s service area has a population of 7.4 million.

These newest commitments, at the equivalent of $470 million, bring the CPP Investment Board’s total infrastructure commitments to approximately $670 million. The CPP Investment Board has allocated up to 10 per cent of the CPP reserve fund for infrastructure assets. Last year the CPP Investment Board committed $200 million to Macquarie Essential Assets Partnership, which invests in infrastructure assets in Canada and the United States.

The value of the Canada Pension Plan reserve fund as at September 30, 2004, was $75.2 billion. Amounts are in Canadian dollars unless specified otherwise.



CPP Investment Board The CPP Investment Board invests in capital markets the funds not needed by the Canada Pension Plan to pay current pensions. Cash flows are currently invested in equities, real estate and infrastructure to balance the cash and bonds owned by the Canada Pension Plan. By increasing the long-term value of funds, the CPP Investment Board will help the Canada Pension Plan to keep its pension promise to 16-million Canadians. With a mandate from the federal and provincial governments, the CPP Investment Board is accountable to Parliament and to the federal finance and provincial finance ministers who serve as the stewards of the CPP. Based in Toronto, CPP Investment Board is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. Its fiscal year is from April 1 to March 31. For more information about the CPP Investment Board, visit www.cppib.ca

For further information contact:

John Cappelletti

Manager – Communications

416-868-0308

jcappelletti@cppib.ca    

January 24, 2005

The CPP Investment Board today announced two new infrastructure commitments, including its first infrastructure co-investment. The CPP Investment Board’s newest commitments are:

•    €200 million commitment to the Macquarie European Infrastructure Fund. The fund, managed by a member of the Macquarie Group, will invest in European infrastructure assets including electricity and gas transmission and distribution networks, water and sewerage companies, rail, airports, communications infrastructure and toll roads.

•    £66 million commitment to co-invest alongside the Macquarie European Infrastructure Fund in the Wales & West gas distribution network. This is a regulated natural gas distribution business serving Wales and the South West of England. This investment is expected to close in the second quarter of this year subject to regulatory approval.

"Infrastructure, which is a relatively new asset class for us, has higher expected returns than bonds and is a good hedge against inflation," said David Denison, President and CEO, CPP Investment Board. "This is the type of regulated asset we are ideally looking for and are disappointed that there are so few domestic opportunities that meet our investment criteria."

The Wales & West gas distribution network is a regulated gas distribution business comprising approximately 34,000km of gas distribution pipelines located in Wales and the South West of England. The network’s service area has a population of 7.4 million.

These newest commitments, at the equivalent of $470 million, bring the CPP Investment Board’s total infrastructure commitments to approximately $670 million. The CPP Investment Board has allocated up to 10 per cent of the CPP reserve fund for infrastructure assets. Last year the CPP Investment Board committed $200 million to Macquarie Essential Assets Partnership, which invests in infrastructure assets in Canada and the United States.

The value of the Canada Pension Plan reserve fund as at September 30, 2004, was $75.2 billion. Amounts are in Canadian dollars unless specified otherwise.



CPP Investment Board The CPP Investment Board invests in capital markets the funds not needed by the Canada Pension Plan to pay current pensions. Cash flows are currently invested in equities, real estate and infrastructure to balance the cash and bonds owned by the Canada Pension Plan. By increasing the long-term value of funds, the CPP Investment Board will help the Canada Pension Plan to keep its pension promise to 16-million Canadians. With a mandate from the federal and provincial governments, the CPP Investment Board is accountable to Parliament and to the federal finance and provincial finance ministers who serve as the stewards of the CPP. Based in Toronto, CPP Investment Board is governed and managed independently of the Canada Pension Plan and at arm's length from governments. Its fiscal year is from April 1 to March 31. For more information about the CPP Investment Board, visit www.cppib.ca

For further information contact:

John Cappelletti

Manager - Communications

416-868-0308

jcappelletti@cppib.ca