October 02, 2006

AWG Plc agrees to recommend cash offer

This announcement does not constitute an offer or invitation to sell or purchase any securities. The offer, which will be made by way of an offer document, will not be made in Canada.

(Toronto, ON) October 2, 2006 – The CPP Investment Board today announced its participation in a consortium that has made a recommended offer to acquire all of the shares in AWG Plc (“AWG”) for 1555 pence per share. The offer values AWG’s equity at approximately ₤2,213 million. The CPP Investment Board’s participation in the bid is for an amount of equity of approximately C$1.05 billion.

AWG is the parent company of Anglian Water, one of the leading water companies in the UK serving approximately six million customers in the east of England.

The members of the consortium, which is investing through a newly incorporated vehicle called Osprey Acquisitions Limited, are: CPP Investment Board, Colonial First State Global Asset Management, Industry Funds Management and 3i Group plc.

The CPP Investment Board’s Senior Vice President, Private Investments, Mark Wiseman, said, The bid supports our overall infrastructure investments strategy. As long-term investors we look for solid infrastructure assets, like AWG, that have stable cash flows, strong operational performance and an experienced management team. The potential acquisition of AWG would be our largest infrastructure investment to date and would further strengthen our growing portfolio of infrastructure assets.”

In June 2006, the CPP Investment Board announced a US$350 million investment in Transelec Chile S.A. Transelec is the largest electricity transmission company in Chile.

About the CPP Investment Board

Canada Pension Plan Investment Board invests the funds not needed by the Canada Pension Plan to pay current benefits. In order to build a diversified portfolio of CPP assets, the CPP Investment Board is currently investing cash flows in publicly traded stocks, private equities, real estate, inflation-linked bonds and infrastructure to balance the legacy government bond portfolio. Based in Toronto, the CPP Investment Board is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At June 30, 2006, the CPP fund totalled C$98.6 billion, including C$5.7 billion in private equity and infrastructure investments. For more information, please visit www.cppib.ca.        

For further information contact:


John Cappelletti, Manager, Communications 
CPP Investment Board 
416-868-0308 
jcappelletti@cppib.ca

or

May Chong, Director, Communications
CPP Investment Board
416-868-8657
mchong@cppib.ca

October 02, 2006

AWG Plc agrees to recommend cash offer

This announcement does not constitute an offer or invitation to sell or purchase any securities. The offer, which will be made by way of an offer document, will not be made in Canada.

(Toronto, ON) October 2, 2006 – The CPP Investment Board today announced its participation in a consortium that has made a recommended offer to acquire all of the shares in AWG Plc (“AWG”) for 1555 pence per share. The offer values AWG’s equity at approximately ₤2,213 million. The CPP Investment Board’s participation in the bid is for an amount of equity of approximately C$1.05 billion.

AWG is the parent company of Anglian Water, one of the leading water companies in the UK serving approximately six million customers in the east of England.

The members of the consortium, which is investing through a newly incorporated vehicle called Osprey Acquisitions Limited, are: CPP Investment Board, Colonial First State Global Asset Management, Industry Funds Management and 3i Group plc.

The CPP Investment Board’s Senior Vice President, Private Investments, Mark Wiseman, said, The bid supports our overall infrastructure investments strategy. As long-term investors we look for solid infrastructure assets, like AWG, that have stable cash flows, strong operational performance and an experienced management team. The potential acquisition of AWG would be our largest infrastructure investment to date and would further strengthen our growing portfolio of infrastructure assets.”

In June 2006, the CPP Investment Board announced a US$350 million investment in Transelec Chile S.A. Transelec is the largest electricity transmission company in Chile.

About the CPP Investment Board

Canada Pension Plan Investment Board invests the funds not needed by the Canada Pension Plan to pay current benefits. In order to build a diversified portfolio of CPP assets, the CPP Investment Board is currently investing cash flows in publicly traded stocks, private equities, real estate, inflation-linked bonds and infrastructure to balance the legacy government bond portfolio. Based in Toronto, the CPP Investment Board is governed and managed independently of the Canada Pension Plan and at arm's length from governments. At June 30, 2006, the CPP fund totalled C$98.6 billion, including C$5.7 billion in private equity and infrastructure investments. For more information, please visit www.cppib.ca.        

For further information contact:


John Cappelletti, Manager, Communications 
CPP Investment Board 
416-868-0308 
jcappelletti@cppib.ca

or

May Chong, Director, Communications
CPP Investment Board
416-868-8657
mchong@cppib.ca