ALTERNATIVE INVESTMENT TRUST — Capital/Financing Update 2007

Jul 25, 2007

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Everest Babcock & Brown Limited ABN 42 112 480 145 Everest Babcock & Brown Alternative Investment Trust � ARSN 112 129 218 Responsible entity Everest Capital Investment Management Limited � ABN 96 112 731 978 � AFSL 288360 Level 35 AMP Centre � 50 Bridge Street � Sydney NSW 2000 Australia T +61 2 8001 9100 � F +61 2 8001 9200 � www.everest.com.au

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26 July 2007

JOINT ASX RELEASE

Everest Babcock & Brown Limited (EBB) Everest Babcock & Brown Alternative Investment Trust (EBI)

Investment Update

In response to recent events in the credit markets and investor queries, we believe that our funds have no net investment exposure to the sub-prime sector of the US mortgage market.

Our investment managers have generally avoided investments in the more speculative and highly leveraged sectors of the market and we believe the current market dislocation should produce opportunities for our distressed securities investment managers. Investors should read the EBI June quarterly report released on 23 July 2007 for more detailed information.

Ends.

About Everest Babcock & Brown Limited (EBB)

Everest Babcock & Brown Limited is one of Australia’s leading investment managers. EBB manages a number of absolute returns funds and funds that invest directly in subordinated debt and equity co-investments. It had assets under management of approximately $3.3 billion[1] at 30 June 2007.

About Everest Babcock & Brown Alternative Investment Trust (EBI)

Everest Babcock & Brown Alternative Investment Trust has exposure to a portfolio of leading international absolute return funds and selected direct investments in subordinated debt and equity co-investments. The objective of the investment portfolio is to generate attractive riskadjusted absolute returns over the medium-to-long term while maintaining a constant focus on capital preservation.

For further information please visit our website www.everest.com.au or contact:

Jeremy Reid David Kent Founder / Chief Executive Officer Executive Chairman Everest Babcock & Brown Everest Babcock & Brown T +61 2 8001 9100 T +61 2 8001 9100

1 Includes invested assets under management of $2.9 billion, approximately $188 million of uncalled capital commitments and $317 million of unutilised debt capacity in respect of all funds managed by EBB.