Disposal

Electra Private Equity PLC
05 September 2007



Electra Private Equity PLC Press Release


Electra announces the sale of its interest in
Dakota, Minnesota & Eastern Railroad Corporation


Electra Private Equity PLC ('Electra') is pleased to announce it has entered
into an agreement for the sale of its interest in Dakota, Minnesota & Eastern
Railroad Corporation ('DM&E') to a subsidiary of Canadian Pacific Railway
Company ('Canadian'). Electra originally invested in DM&E over 20 years ago.


DM&E operates 2500 miles of track in the Midwest USA and has been pursuing a
strategy to become the third rail carrier that is needed in Wyoming's Powder
River Basin. The Powder River Basin is North America's largest and most rapidly
growing source of low-cost, low-sulphur coal as well as the largest single rail
market in terms of volume.


Consideration payable to Electra and the other selling shareholders in DM&E
consists of a total US $1.48 billion cash payment at closing, expected at the
end of September 2007, by Canadian with future contingency payments of up to US
$350 million with the start of construction on the Powder River Basin Expansion
Project ('PRBEP') and up to US $707 million if certain PRBEP coal tonnage
thresholds are exceeded.


Initial net proceeds to Electra at closing are estimated, subject to exchange
rate movements, to give rise to an increase in Electra's valuation of DM&E
equivalent to 26p per Electra share. This increase excludes any value
attributable to the future contingency payments detailed above.


For further information please contact:

Hugh Mumford,         Electra Partners LLP            020 7214 4200

Nick Miles,           M: Communications               020 7153 1535


                      This information is provided by RNS
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