CPP Investment Board Announcement Re Airport

Auckland International Airport Limited (“Auckland Airport”) is aware that CPP Investment Board (“CPPIB”) has made an announcement in respect of its intentions in relation to Auckland Airport.  A copy of the announcement follows.

No proposal has been received by Auckland Airport from CPPIB.  Auckland Airport will continue to keep shareholders fully informed of developments on a regular basis.

Should a proposal be received from CPPIB, the directors of Auckland Airport will consider the proposal and obtain expert advice on its merits before being in a position to make a recommendation to shareholders.  This could take some time.

CPP Investment Board’s Intentions in Relation to Auckland International Airport Limited

Auckland, NZ (September 19, 2007)  In response to continued speculation and market activity, the CPP Investment Board today confirmed that it intends to submit a proposal under which it would acquire a significant minority stake in Auckland International Airport Limited (AIAL).

Following on from the statement made on September 3, the CPP Investment Board confirms that it has formulated a framework for an amalgamation that it will discuss with AIAL at a meeting scheduled for September 20.

The framework for amalgamation formulated by the CPP Investment Board would provide shareholders with the choice of three options, one of which will be an all cash option of $3.70 per share.  The other two options, which will provide a value of up to $3.90 per share, would involve a combination of cash and the issue of new securities that provide enhanced returns

whilst preserving the investment grade rating of AIAL.  Each of these three options could be subject to some scaling, depending on shareholder take-up of the various options.

The CPP Investment Board also advises that it has received committed financing in respect of its proposal.

CPP Investment Board

The CPP Investment Board invests the funds not needed by the Canada Pension Plan to pay current benefits on behalf of 16 million Canadian contributors and beneficiaries. As at June 30, 2007, the CPP Fund was C$120.5 billion (NZ$162.5 billion). In order to build a diversified portfolio of CPP assets, the CPP Investment Board is investing in publicly-traded stocks, private equities, real estate, inflation-linked bonds, infrastructure and fixed income.

The CPP Investment Board is accountable to the Canadian Parliament and the federal and provincial finance ministers.

Based in Toronto, the CPP Investment Board is governed and managed independently of the Canada Pension Plan and at arm's length from governments.

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