407 International Inc. announced today a loss of $22.8 million for the second quarter of 2004 compared with $19.8 million for the second quarter of 2003. The increase in net loss was primarily caused by higher non-cash interest expense on Real Return Bonds. Earnings before interest, taxes, depreciation and amortization (“EBITDA”) totalled $71.6 million compared with $57.8 million in the corresponding period of 2003, reflecting an 8 per cent increase in traffic and 12 per cent increase in operating efficiency. The highway set a one-day traffic record of 384,242 on June 30. The Board of Directors declared and paid a dividend of approximately $0.024 per common share (calculated on a fully-diluted basis) on or about July 23, 2004, to equityholders of record on July 23, 2004.

407 International Inc. is the sole shareholder, operator and manager of 407 ETR, which extends 108 kilometres east-west, just north of Toronto. 407 International Inc. is owned by a consortium comprised of the Canadian subsidiary of Cintra Concesiones de Infraestructuras de Transporte (co-owned by Grupo Ferrovial and Australian-headquartered Macquarie Infrastructure Group) and Canadian-based SNC-Lavalin.

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For more information, contact:

Investors:

Kenneth A. Walker
Chief Financial Officer
Tel: 905-265-4070

Media:

Dale A. Albers
Manager, Public Relations
Tel: 905-264-5221