• Creation of Investment Partnership with Hochtief
• Follow-on investment in three Secondary PFI Projects

The Board of The PFI Infrastructure Company PLC (“PFI Co”), the holding company of a company formed for the purchase of investing in PFI opportunities, today announces that it has entered into a Call Option Agreement with Hochtief PPP Solutions GmbH to acquire 49% of the share capital of Hochtief PPP Schools Capital Limited. It has also completed the purchase of further equity interests in three of its existing investments.  Quayle Munro, the independent merchant bank, acts as manager to PFI Co.

On 20 December 2006 PFI Co entered into a Call Option Agreement to acquire 49% of the equity and associated loan stock of Hochtief PPP Schools Capital Limited from Hochtief PPP Solutions GmbH for £9.3 million.  This price is payable on exercise of the option in December 2007 and is subject to Hochtief PPP Solutions delivering the shares and loan stock.

Hochtief PPP Schools Capital Limited has been newly formed to hold Hochtief’s shareholdings in six early stage PFI projects in the UK and Ireland, namely, Manchester Schools, Cork School of Music, North Ayrshire Schools, East Ayrshire Schools, Bangor & Comber Schools and Salford Schools, all of which are in the construction phase. PFI Co already has direct shareholdings in North Ayrshire Schools and East Ayrshire Schools which are unaffected by this transaction. In addition to the Call Option for the shareholding in Hochtief Schools Capital, PFI Co is also committed to its share of deferred equity subscriptions due over the next four years to three of the SPV’s in a total of £3.64 million, making an aggregate commitment as a result of this transaction of £12.94 million.

Between October and December 2006, PFI Co also acquired further equity and associated loan stock from shareholders in three of its existing projects, for an aggregate price of £7.4 million.

This comprised the purchase of a further 15% of the project company for the Mid-Argyll community hospital in Lochgilphead, bringing PFI Co to 55%; 60% of the Salisbury Hospital project company, bringing PFI Co to 100%; and 60% of the project company for the Forfar Community Hospital, again bringing PFI Co to 100%.  All three projects are fully operational, and the existing management arrangements will continue.

Commenting on the transactions, Jo Elliot, Chief Executive of Quayle Munro Ltd, managers of PFI Co said:

"We are pleased to have been chosen to be the long-term financial investment partner to Hochtief for the development of its education PPP business and see great potential for future business together.

“The acquisition of further equity in three of PFI Co’s existing health projects improves the quality of the company’s portfolio by bringing it into three further majority shareholding positions, in two cases to outright ownership.”

- Ends -

For further information contact:

Jo Elliot
Quayle Munro
0131 240 2357 (direct) or
0131 226 4421

Emma Kane/Tom Newman
Redleaf Communications
Tel:  020 7822 0200

Notes to Editors:

• The PFI Infrastructure Company PLC is listed on AIM (PFI.L) and is currently capitalised at approximately £100 million;
• The Board of the Company comprises Richard Jewson (former Chairman of Savills plc), David Steeds (former Chief Executive of the Private Finance Panel), Tim Walker, Rupert Cottrell and Jonathan Clague all of whom are non-executive directors and are independent of the Investment Manager;
• The Group’s investment objective is to achieve a regular high level of dividend payment with the opportunity of capital growth;
• Further information is available on the Group at www.pfiplc.com.