bbi eps (beppa), page-4

CONSEQUENCES OF BABCOCK & BROWN INVESTOR SERVICES LIMITED CHANGE OF CONTROL

On 1 December 2008, BBI EPS Limited announced that if a Change of Control Event occurs in accordance with the EPS terms as a result of the Responsible Entity of Babcock & Brown Infrastructure Trust ceasing to be a member of the Babcock & Brown Group, it is the company’s current intention to redeem the EPS and issue Equivalent Securities as consideration for the redemption rather than have EPS redeemed for cash or convert into Babcock & Brown Infrastructure stapled securities.

Further to that announcement, BBI EPS Limited has undertaken significant investigations and obtained detailed advice in relation to the issuing of Equivalent Securities. These investigations have revealed some uncertainty about the feasibility of issuing Equivalent Securities in the current circumstances.

Accordingly, in the event of a Change of Control Event occurring as a result of the Responsible Entity of Babcock & Brown Infrastructure Trust ceasing to be a member of the Babcock & Brown Group, the directors of BBI EPS Limited reserve their right to decide whether to redeem, convert, or issue Equivalent Securities, based on the circumstances prevailing at the relevant time.

* Copies of the EPS terms are available on the website of Babcock & Brown Infrastructure Group: www.bbinfrastructure.com.