Acquisition(s)

HICL Increases Stakes in 4 Projects for £4.6 Million

HSBC Infrastructure Company Limited ("HICL"), the listed infrastructure
investment company, announces today two transactions for an aggregate
consideration of £4.6m, payable in cash from existing resources.

Barnet Hospital

A subsidiary of HICL has acquired the 11% equity and subordinated debt interest
held by Barnet Hospital Project Limited ("BHP", a subsidiary of Bouygues) in
the Barnet Hospital project, thereby increasing its stake from 30% to 41%. The
Barnet Hospital project is a long term concession to design, construct, operate
and maintain the re-building of Barnet General Hospital in North London. The
project has been operational since April 2000. BHP retains a 19% stake in the
project.

Enterprise Projects

A subsidiary of HICL has acquired the 10% equity and loanstock interests from
Alfred McAlpine in the Conwy Schools, Exeter Courts and Stoke Mandeville
Hospital projects. The projects are concessions to design, construct, operate
and maintain 3 schools in North Wales, a crown and county court in Exeter and a
hospital facility for the Buckingham Hospitals NHS Trust respectively. The
acquisition takes HICL's stake in each of these three projects from 80% to 90%.

Tony Roper, Director, HSBC Specialist Fund Management Limited, HICL's
Investment Adviser, said: "We are delighted to announce these bolt-on
acquisitions, which support HICL's strategy of expanding through carefully
selected acquisitions of infrastructure investments."

Enquiries

M:Communications [phone]

Ed Orlebar

Andre Le Prevost

Kleinwort Benson (Channel Islands) Fund Services Limited

Company Secretary

01481 727111

Notes

HSBC Infrastructure Company Limited

The Company is the first infrastructure investment company to be listed on the
London Stock Exchange, and is seeking to deliver long-term sustainable
dividends at levels that exceed current UK and other European government bond
yields, by investing in infrastructure projects.

Following the listing on the London Stock Exchange, the initial portfolio of 15
projects has been acquired by the Company and further investment opportunities
are being sought.

The investment adviser to the Company is HSBC Specialist Fund Management
Limited, whose infrastructure investment team has successfully invested in
infrastructure projects since 1997.

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