ALTERNATIVE INVESTMENT TRUST — Net Asset Value 2007

Dec 13, 2007

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14 December 2007

ASX RELEASE

Everest Babcock & Brown Alternative Investment Trust

Unaudited Net Tangible Asset Backing as at 30 November 2007

Please find below information on the net tangible asset (NTA) backing for Everest Babcock & Brown Alternative Investment Trust (EBI):

NTA per unit as at 31 October 2007 $4.04[1]

November 2007 Investment Portfolio Commentary

EBI’s investment portfolio posted a loss of 1.70% for the month, with both the portfolio of absolute return funds and the direct investments recording modest declines. While a number of our core investment managers within the portfolio generated positive returns, these contributions were outweighed by small losses from the majority of investments.

November was a poor month for both the equity and corporate bond markets. Both the S&P 500 (representing the largest US stocks) and the MSCI World Index (a selection of the largest stocks from global developed markets) declined approximately 4.3%. The month end figures disguised even worse intra-month volatility as the S&P 500 hit an intra-month low of -9.2%. Corporate bonds also provided little protection as the Merrill High Yield Master II Index (representing the high yield market) fell 2.1%.

Market declines were lead by US financial stocks, as increasing subprime related losses were made public. Citigroup Inc, the largest US bank as measured by assets, fell 20.5% during the month as mounting losses led to the departure of the firm’s CEO, Charles “Chuck” Prince. The share prices of banks in Japan and Europe also declined as subprime losses, either rumoured or announced, impacted all corners of the financial system. Some investors are viewing the turmoil as an opportunity to take strategic stakes in institutions with strong business franchises and in the past few weeks Citigroup, UBS and the bond insurer, MBIA, have all received multibillion dollar investments from sovereign wealth funds or private equity firms.

A number of our core investment managers were able to take advantage of the market declines due to substantial short positions in selected financial stocks and subprime securities. Many investment managers remain bearish on the medium term direction of the markets and believe that the credit crisis will take an extended period of time to resolve. While these investment managers are well hedged against falls in the markets, they are nevertheless wary of a traditional December year end rally which may result in a temporary upswing in the markets.

EBI’s allocation to direct investments was approximately 16.4% at month end. One new mezzanine loan was made during the month and approximately 50% of a loan backed by a portfolio of developed US real estate assets was repaid. It is expected that the remaining balance of the loan will be repaid in the new year. The new investment involves a loan to an Australian public private partnership (PPP). The loan offers an attractive return profile backed by essential services infrastructure.

We remain committed to our objective of preserving capital and producing attractive riskadjusted returns over the medium-to-long term.

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Monthly Performance:

2007	Jan 2	Feb 1	Mar 1	April 1	May 1	Jun 1	Jul 1	Aug 1	Sep 1	Oct 1	Nov 1	Dec
NTA 4	$4.73	$4.29	$4.39	$4.50	$4.28 5	$4.07	$4.07	$3.93	$3.98	$4.11	$4.04
Distribution 3	-	$0.434	-	-	-	$0.238	-	-	-	-	-
Monthly	2.60%	-0.13%	2.33%	2.51%	-4.89% 5	0.65%	0.00%	-3.44%	1.27%	3.27%	-1.70%
Cumulative	30.63%	30.47%	33.51%	36.86%	30.17%	31.02%	31.02%	26.51%	28.12%	32.30%	30.05%

Note: The May 2007 monthly performance does not include the implied value of EBB shares received by investors who successfully participated in the EBI capital raising. See note 5 below for details.

2006 2	Jan	Feb	Mar	April	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
NTA 4	$4.77	$4.37	$4.48	$4.57	$4.39	$4.17	$4.07	4.$4.14	4.$4.21	4.$4.33	4.$4.49	4.$4.61
Distribution 3	-	$0.395	-	-	-	$0.234	-	-	-	-	-	-
Monthly	4.15%	-0.21%	2.63%	2.01%	-3.94%	0.32%	-2.40%	1.72%	1.69%	2.85%	3.70%	2.67%
Cumulative	14.39%	14.15%	17.16%	19.51%	14.80%	15.17%	12.41%	14.34%	16.27%	19.59%	24.01%	27.32%
2005 2			IPO	April	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
NTA 4			$4.17	$4.02	$4.06	$4.17	$4.37	$4.38	$4.52	$4.35	$4.47	$4.58
Monthly				-3.60%	1.00%	2.71%	4.80%	0.23%	3.20%	-3.76%	2.76%	2.46%
Cumulative				-3.60%	-2.64%	0.00%	4.80%	5.04%	8.39%	4.32%	7.19%	9.83%

1 Unaudited – In calculating the NTA, EBI asset values have been calculated using unaudited absolute return fund performance estimates for the month being reported.

2 NTA figures for the month ended 31 January 2007, periods ended 31 December 2006 and 31 December 2005 are final and audited.

3 Distributions paid and payable are included in the calculation of monthly and cumulative performance, and are rounded to 3 decimal places.

4 For the purposes of calculating the above figures, the Australian Equivalents to International Financial Reporting Standards (AEIFRS) principles have been applied (other than for classification of net assets attributable to unitholders of the EBI where Australian Generally Accepted Accounting Principles (AGAAP), as applied before the introduction of AEIFRS, have been used).

• 5 On 4 May 2007 EBI announced the successful completion of its capital raising which raised approximately $503 million. The NTA backing per unit for May 2007 was diluted by the effect of the capital raising due specifically to 120.5 million units being issued under the capital raising and capital raising costs of $18.8 million.

The performance of the underlying investment portfolio (excluding the effect of the capital raising) for May 2007 was 2.40%. On 8 May 2007, successful participants in the capital raising were allotted one EBB share at no additional consideration for every 4.5 EBI units allotted. Those EBI unitholders who participated in the capital raising would have achieved a performance (movement in NTA plus implied value of EBB shares allotted) of 12.89% for the month of May. The $0.80 implied value of the EBB shares is based on the 8 May 2007 EBB closing market price of $3.60. Please refer to the EBI Product Disclosure Statement and the EBB Offer Information Statement (both dated 2 April 2007) for further information about the capital raising.

Ends.

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

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