Morgan Stanley Investment Management Inc. Announcement Regarding Holdings in Brookfield Infrastructure Partners L.P.

TORONTO--(BUSINESS WIRE)--Morgan Stanley Investment Management Inc. (“MSIM”) announced today that on or about February 29, 2008, MSIM together with certain affiliated entities (“MSIM affiliates”) acquired direction and control over greater than 20% of the issued and outstanding non-voting, limited partnership units (“Units”) of Brookfield Infrastructure Partners L.P. (“BIP” or the “Issuer”) (NYSE:BIP).

MSIM affiliates initially acquired Units in connection with the spin-off of the Issuer by Brookfield Asset Management Inc. (“BAM”), in which Units were distributed on January 31, 2008 by BAM as a special dividend to holders of its Class A and Class B limited voting shares. MSIM affiliates acquired additional Units of Brookfield through secondary market trading on the New York Stock Exchange.

In connection with their holdings in Brookfield, MSIM filed an Alternative Monthly Report (“AMR”) on March 7, 2008 with Canadian securities regulators, disclosing that MSIM and certain of its affiliated entities held 5,026,531 Units of the Issuer. At that time, MSIM reported that this holding represented approximately 12.57% of that class of Units. The foregoing calculation was based on third party market data sources which stated that the Issuer had approximately 39,200,000 Units outstanding as of February 29, 2008. Since that time, MSIM has become aware that there are actually 23,341,850 Units outstanding. MSIM will be filing an Alternative Monthly Report to reflect this updated information concurrently with this release.

As of July 23, 2008, MSIM affiliates hold 5,200,471 Units representing approximately 22.28% of the outstanding Units of Brookfield, over which they have direction and control. All Units of the Issuer acquired by MSIM affiliates were acquired in the ordinary course of business as passive investments only and not for the purpose of influencing management control of the Issuer. All such Units are held by MSIM on behalf of discretionary accounts and investment funds managed by MSIM.

The circumstances described above have only recently come to the attention of MSIM. MSIM at no time intended to acquire a 20% or greater equity interest in the Issuer and only did so inadvertently. MSIM affiliates have not made acquisitions of Units subsequent to becoming aware that their holdings exceeded 20% of the Issuer’s outstanding Units. MSIM affiliates intend to reduce their holdings in the Units to below the 20% threshold including, subject to market conditions, through secondary market trading on the New York Stock Exchange.

MSIM affiliates provide asset management services to clients, generally on a discretionary basis. In the ordinary course of their advisory business, MSIM affiliates entities exercise control and direction over securities held in client accounts.

Affiliated entities of MSIM having holdings included in this release are Morgan Stanley Investment Management Limited, and Morgan Stanley Investment Advisors Inc.

For further information and to obtain a copy of the Alternative Monthly Report in connection with this release please contact Erica Platt, Corporate Communications, at (212) 762-6848. The report will also be available at www.sedar.com.

Morgan Stanley Investment Management Inc. (“MSIM”)

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