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Michelago ann Agreement with ANZ Infrastructure Services

Document date:  Mon 17 Jun 2002
Published:  Mon 17 Jun 2002 10:05:08
Document No:  266594
Document part:  A
Market Flag:  Y
Classification:  Other

MICHELAGO LIMITED                             2002-06-17  ASX-SIGNAL-G

HOMEX - Sydney                                                        

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Michelago is very pleased to announce that it has entered into an
agreement with ANZ Infrastructure Services Ltd, a division of ANZ
Banking Group Limited, to develop wind power projects in support of
federal and state government renewable energy legislation.

Under the agreement between Michelago and ANZ Infrastructure
Services, all current and future wind power projects from Michelago
will be pooled through Wind Power Investment Trust, an investment
trust managed by ANZ Infrastructure Services. Projects identified by
ANZIS and Michelago to date have an estimated capital cost in excess
of $500 million.

The establishment of WPIT follows a period of extensive industry
research and governmental liaison and ANZIS fully expects that WPIT
will become a major equity investor in the wind power sector, both in
Australia and later overseas, Michelago's projects complement ANZIS's
interests in the Tungketta Hill and Sheringa wind farms in South
Australia that have the potential to deliver over 20OMW of green
energy into the national electricity market.

Under the terms, of the agreement Michelago, will vend its existing
wind development rights and intellectual property into WPIT and
receive 2 million $1 units in the trust. Additionally, WPIT will
provide funding for the Michelago projects. Michelago shareholders
will obtain a preferential offering in any IPO of WPIT.

Managing Director of ANZIS Mr John Clarke said "We are pleased to
finalise this arrangement with Michelago Limited. The expertise of
the Michelago's senior executive team, and the potential of the wind
farm sites secured by them to date will strengthen the overall
capability of ANZIS to deliver renewable energy in Australia and
complement our other projects in this sector."

Chairman of Michelago Mr John Horan said "For Michelago, this
agreement is testimony to the effectiveness of the targeted and low
cost strategy to develop opportunities in the renewable sector
embarked upon by the company fits over 12 months ago. The agreement
with ANZIS will create a quality asset for Michelago with potential
growth and significantly reduce the company's ongoing cost
structure."

C Cowan
MANAGING DIRECTOR