Morgan Stanley Infrastructure and Ontario Teachers’ Pension Plan announces an agreement to acquire the Chinese electricity activities of PSEG

NUEVA YORK/TORONTO: Morgan Stanley Infrastructure (MSI) and The Ontario Teachers' Pension Plan (Teachers') announced today that it will celebrate a definitive agreement to acquire together with the SAESA Group (SAESA), a subsidiary of the Chilean Distribution, Transmission and Electricity Generation of the Public Service Company Incorporated (Public Service Enterprise Group Incorporated, PSEG), an electricity company located in the United States since the main offices are located in New Jersey. The price of sales is approximately US$ 870 million, and MSI as Teachers' also assumes more than US$ 400 million of the company's current price. With a price adjustment that will be made on the basis of the moment of the steel, it is hoped that it will occur in the third quarter of 2008. The property of the company valued in US$ 1,300 million will be divided into equal parts by MSI and Teachers'.

SAESA is the second largest electricity distributor in Chile in which it respects its geographic cobertura, and is the main source of electricity in the rapidly growing regions of the country. The company provides service to 16% of Chile's population and provides electrical service to approximately 2.6 million people. Furthermore, SAESA owns and manages over 135 megawatts of electrical, hydraulic, diesel and gas generation capacity, and runs its transmission company and manages 949 kilometers of secondary transmission lines.

“In its first Latin American country in privatizing and restructuring its electricity industry more than 20 years ago, Chile has established a sophisticated and stable regulatory labor market that is considered attractive,” says Ron Lepin, Director of Operations at MSI. "SAESA is a 90% regulated company that generates predictable box flows and stable returns at large, where it adapts well to our inversion objectives. We hope to respond enthusiastically to the company's platform and growth prospects in a country that has the economy of major growth in Latin America lasting more than 15 years".

Stephen Dowd, vice-president of Teachers' Infrastructure, says Teachers' invites a global level in regulated industries that proportionate to stable yields and adjusted to inflation at large. "The SAESA Group is a well-administered company with diversified electricity activities and a firm position in the market in the Chilean energy sector, which has an excellent reversal for our business", said Lord Dowd. "As the active owner is compromised to work in a strategic capacity with the administration and with our socio-economic status to respond to the growth in the long term of the company".

Acerca from Morgan Stanley Infrastructure
Morgan Stanley Infrastructure is a global inversion platform that focuses on inversions at large locations associated with the sum of essential public goods and services for companies throughout the world. Morgan Stanley Infrastructure, which includes offices in North America, Europe and Asia, is part of the Mercantile Banking Division of the Morgan Stanley Investment Management company. On February 29, 2008, Morgan Stanley Investment Management held US$ 577,000 million in operations under its administration.

Acerca from The Ontario Teachers' Pension Plan
The Ontario Teachers' Pension Plan is Canada's largest single-profession pension plan, and as of December 31, 2007, it has C$ 108,500 million (US$ 107,100 million) in net activities. Is an independent corporation responsible for inverting the activities of the pension fund and administering the pensions of the 278,000 active and retired masters of Ontario. Teachers' infrastructure map was initiated in 2001 and focused on the acquisition and retention of a long range of activities that maintain a long economic life and offer low-cost, reliable profitability supported by inflation to pay pensions indexed in accordance with inflation.

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Contacts:

Marie Ali
Vice President, Corporate Communications
Morgan Stanley Infrastructure
212-762-6884
Marie.Ali@morganstanley.com

Deborah Allan
Director, Communications and Media Relations
Ontario Teachers' Pension Plan
(416) 730-5347
deborah_allan@otpp.com