MARKET RELEASE

CHALLENGER INFRASTRUCTURE FUND FY12 RESULTS LBC and Inexus EBITDA in line with expectations Consolidated loss after tax attributable to unit holders AUD$102.1 million

29 August 2012, Sydney - Challenger Infrastructure Fund (ASX: CIF) has lodged its financial report for the year ended 30 June 2012 with the ASX. The second half results for both LBC and Inexus were in line with expectations. Fund level earnings for FY12 have been adversely impacted by movements in the fair value of Inexus derivatives (A$132.8 million) and the continued appreciation of the Australian dollar.
LBC's revenues were US$253.3 million for FY12, 4.9% higher than the prior corresponding period. Earnings before interest, tax and depreciation ("EBITDA") were US$99.6 million, 3.8% higher than FY11. The predominant contributors to the growth in EBITDA were the US and French terminals.
Inexus revenues for FY12 were £69.4 million, 10% higher than FY11. The company's EBITDA for FY12 was
£51.6 million, 8.6% higher than the prior corresponding period. Inexus currently owns 647,334 utility connections in the UK including 24,772 new connections from the roll out of the order book during the year. Inexus is seeking an extension in the repayment date of its existing debt facilities to 30 November 2012 to provide Brookfield with the opportunity to recapitalise and refinance the company. Negotiations with the company's lenders and swap providers on the extension are at an advanced stage. The Board expect to make a further announcement regarding these negotiations in the next few days.
The second half FY12 distribution of 5 cents per unit will be paid to unit holders on 30 August 2012 in line with CIF's previously announced estimate.
Over the last 12 months the Board and management completed a strategic review initiated in August 2011. A binding sale agreement was signed in respect of LBC on 4 June 2012. On 22 June 2012 CIF contracted to sell Inexus subject to a favourable unit holder vote, which was received at a general meeting of CIF held on
15 August 2012. Following the completion of both asset sales it is the Board's intention to wind-up the fund and to distribute the net sale proceeds received in two instalments. The first wind-up distribution of A$1.29 is expected be paid in October 20121. If CIF becomes entitled to the contingent payment for the sale of Inexus, then the resulting net proceeds are expected to be distributed by the end of this calendar year.1
The completion of the sale of LBC is subject to merger approval from the European Commission. The buyers have lodged a final application and expect to receive a favourable response in early September.
The completion of the sale of Inexus to Brookfield is now only conditional on the minority shareholders in Inexus exercising or waiving their pre-emptive right to match the payment terms offered by Brookfield. Completion of a sale of Inexus to either Brookfield or the minority shareholders if they exercise their pre- emptive rights is expected to occur in early October 2012.
CIF's chief executive Emil Pahljina will remain with the fund until the completion of both asset sales, and thereafter has agreed to oversee the wind up of CIF in a reduced capacity. Michael Cole, Chair of CLIL said "Emil became the fund's Chief Executive in March 2010 and has been instrumental in successfully navigating the fund through an extremely difficult and challenging period. On behalf of the Board we would like to thank him for his efforts to date and also for his willingness to commit to completing the task and seeing the strategic review through to the very end."

1 Note these dates are subject to change depending on future events.

Further enquiry: Chantal Travers, Senior Manager, Investor Relations, Challenger Limited, 02 9994 7560

Nicole Webb, Corporate Communications Associate, Challenger Limited, 02 9994 7806

Challenger Infrastructure Fund (CIF Investment Trust 1 ARSN 114 139 703 and CIF Investment Trust 2 ARSN 114 139 632) Responsible Entity Challenger Listed Investments Limited ABN 94 055 293 644 AFSL 236887

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