FEX - The Financial and Energy Exchange Group

Macquarie Group and Financial & Energy Exchange launch comapny to develop environmental markets

21st May, 2008

Macquarie Group Limited and Financial & Energy Exchange (FEX) today announced the formation of a new company to enable trading in a range of environment products, a move that will help to establish Australia as a regional carbon trading hub.

The joint venture, enVex, will enable companies to trade in emission permits under the Australian Emissions Trading Scheme by the second half of this calendar year.

Through enVex, corporations can prepare for the 2010 start date by buying and selling environmental instruments on FEX's over-the-counter and exchange infrastructure. Environmental products to be traded will include carbon, renewable energy, and weather derivatives. This includes both futures and spot contracts.

The partners today announced key appointments to the new company.

The Honourable Bob Carr has been appointed Chair of the Board of enVex. Mr Carr launched one of the first carbon trading schemes while Premier of NSW, the Greenhouse Gas Abatement Scheme, in January 2003. He was also a member of former British Prime Minister Tony Blair's International Taskforce on Climate Change.

"Providing a full range of environmental products on an exchange such as FEX will help to establish Australia as a regional carbon trading hub." Mr Carr said.

Mr Vincent Cornes has been appointed General Manager of the joint venture. Mr Cornes was formerly Carbon Trading Manager at Origin Energy where he was responsible for one of Australia’s largest and most diverse carbon and renewable energy portfolios.

Macquarie Capital Executive Director, Climate Change Investments, Oliver Yates, said carbon was becoming a leading global commodity.

“We want Australian business to have access to a full range of tradeable products to prepare for a low carbon economy and for mandatory emissions trading,” Mr Yates said.

Brian Price, CEO of FEX said: “enVex is uniquely placed because of Australia’s strong experience in finance and carbon management.“

“Climate change is a rapidly growing risk for business. enVex will be an essential resource for business to manage exposure to climate change,” Mr Price said.

Subject to final regulatory approvals, enVex products will be offered on FEX’s trading platforms from the second half of 2008.

About FEX

The Financial & Energy Exchange Limited (FEX) is an emerging international provider of financial, energy and environment market services based in Sydney. FEX was established to provide a regional exchange offering products across the financial, energy and environmental spectrum and responsive, flexible markets for derivatives trading.

About Macquarie Capital

Macquarie Capital includes the Macquarie Group's wholesale structuring, underwriting, corporate advisory, Macquarie Capital Funds, private equity, and specialised equipment financing, institutional stockbroking and equities research capabilities.

Macquarie Capital established Climate Change Investments in 2007 to pursue investment opportunities that will assist the world in responding to the challenge of climate change. The Global Climate Change Practice has dedicated staff in Sydney, London, New York and Hong Kong.

Media contacts:

Stephen Yan
Corporate Communications
Macquarie Group
Phone: +61 2 8232 2788
Mobile: +61 448 877 439

Dimitri Burshtein
Group Executive
FEX
Phone: +61 2 9251 4565
Mobile: +61 414 629 751

Vincent Cornes
General Manager
enVex
Phone: +61 2 8815 9505
Mobile: +61 419 470 924