Acquisition

Babcock&Brown Public Ptnrships Ltd
07 December 2006




                   Babcock & Brown Public Partnerships Limited

                   Acquisition of an interest in Reliance Rail

Babcock & Brown Public Partnerships Limited (LSE: BBPP) (BBPP or the Company),
the global public infrastructure fund, today announced the acquisition of a
12.75% equity interest in Reliance Rail. The project is valued at approximately
A$3.6 billion, including a 30 year maintenance component and is the largest ever
Public Private Partnership (PPP) project in Australia and one of the world's
largest this year.

Reliance Rail is a PPP project between a consortium of investors, including
BBPP, and RailCorp, a state owned corporation of the State Government of New
South Wales. The partnership is contracted to finance, design, construct, own
and maintain rolling stock to be operated by RailCorp. The consortium consists
of Downer EDI, BBPP, ABN AMRO Australia and AMP Capital Investors.

The trains will be manufactured by a joint venture comprising EDI Rail and
Hitachi. Hitachi is the manufacturer of Japan's famous 'bullet train' and has
recently been contracted to provide rolling stock for the Channel Tunnel Rail
Link.

BBPP will be investing A$17.43 million (£6.98 million) for its 12.75% interest
in the Reliance Rail Consortium.

Giles Frost, Director of BBPP, said, 'This investment is consistent with our
stated intention of pursuing public infrastructure opportunities that offer
stable long-term cashflows and attractive returns relative to the risk profile.
We will continue to capitalise on the rapid growth of PFI and PPP projects
around the world and this is a strong first step in that process.'

'This investment demonstrates the ability of the Company to add value for
shareholders through the deployment of capital internationally to create a
global portfolio of PPP contracts across a diverse range of sectors.'

'The opportunity for BBPP to invest at par in an international greenfield PPP
project illustrates the value of the Company's relationship with its investment
adviser, Babcock & Brown Investment Management Limited, which provides access to
a worldwide network of offices staffed by dedicated infrastructure specialists.'

For further information, please contact:

Babcock & Brown Anthony Kennaway [phone]

Notes to Editors

About Babcock & Brown Public Partnerships Limited:

Babcock & Brown Public Partnerships Limited (LSE: BBPP) is a newly established,
limited liability, Guernsey incorporated, closed-ended investment company. The
Company offers shareholders an exposure to investment in infrastructure assets,
particularly those with a public or social character such as those developed
under public bodies under private finance initiative or public private
partnership procurements.

The Company floated on the main market of the London Stock Exchange on 9th
November 2006 and as at 9 November 2006 had a market capitalisation of £300
million. The initial portfolio of the Company consists of twenty two
infrastructure investments the majority of which are developed under the PFI
programme of the UK Government and the UK NHS Local Improvement Finance Trust
(LIFT) initiative. Babcock & Brown has been responsible for the development and
management of the majority of these assets and through Babcock & Brown
Investment Management Limited (BBIML) will continue to manage them for the
benefit of BBPP.

In the future BBPP intends to capitalise on the development and
internationalisation of private finance initiative (PFI) and public private
partnerships (PPP) procurement models for public infrastructure in other
developed countries, which it is anticipated will provide numerous investment
opportunities for BBPP.

About Reliance Rail

Reliance Rail is the successful proponent for the finance, design, construction
and maintenance of 78 eight-car double deck sets and two spare carriages for the
NSW Government's Rolling Stock Public Private Partnership (PPP).

The new cars will replace 498 non air-conditioned carriages and provide extra
rolling stock capacity for the CityRail travelling public by 2013. The first
sets are expected to reach use in 2010.

Reliance Rail is a team of Australia's leading infrastructure developers,
engineers and rail services companies with proven international capacity and
capability.

Reliance Rail will be an operating business with the following shareholding:

   •Downer EDI - 49%
   •AMP Capital Investors - 25.5%
   •Babcock & Brown Public Partnerships Limited and ABN AMRO -12.75% each

Reliance Rail will be supported by the following core contractors for the
delivery of the PPP contract:

   •The EDI Rail - Hitachi Joint Venture - responsible for the design,
    manufacture and commissioning of the rolling stock and train simulators. EDI
    Rail is Australia's leading provider of rolling stock and maintenance
    services. Hitachi is a world-leading provider of reliable and safe commuter
    and high-speed trains and train componentry.
   •EDI Rail - responsible for the design and construction of the maintenance
    facility at Auburn. This project will be sub-contracted to the John Holland
    Group.
   •EDI Rail will create a special purpose vehicle company which will be
    responsible for the maintenance of the rolling stock (30-year contract),
    maintenance facility and train simulators.




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