ARC FUNDS LIMITED — M&A Activity 2007

Dec 2, 2007

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JOINT ANNOUNCEMENT

COMPLETION OF SALE OF ASSET MANAGEMENT BUSINESS

On 30 November 2007, Cheviot Bridge Limited (“ CVB ”) successfully completed the sale of Cheviot Asset Management Pty. Limited (“ CAM ”) and Cheviot Kirribilly Limited (“ CKL ”) respectively the asset manager and responsible entity for the $43million ASX listed Cheviot Kirribilly Vineyard Property Group (“ CKP ”).

Consistent with the announcement to the market on 18 September 2007, CVB received total consideration of $1.0 million in the form of cash and the allotment of 645,161 shares of the purchaser, Tidewater Investments Limited (“ Tidewater ”) (ASX: TDI) at an imputed price of $0.775 per share.

CVB, Tidewater and various subsidiary entities have signed a mutual co-operation agreement (“ MCA ”) which ensures continuity of vineyard management for the five composite vineyards within the CKP structure, as well as the Woodstock Road Vineyard in Langhorne Creek, the acquisition of which is scheduled to be completed in January 2008. The MCA also covers issues relating to fee sharing, pursuit of new vineyard opportunities and vineyard management rights.

Michelene Hart from CVB has joined Tidewater as Chief Executive Officer: Asset Management along with Lachlan Batchelor as Investment Manager. Both will play wider roles in corporate activities and the development of other funds management products within the Tidewater stable. CAM and CKL will be renamed to reflect their new ownership by Tidewater.

3 December 2007

For further information:

David Wood Finance Director Cheviot Bridge Limited (03) 8656 7002 / 0417 011 920

Andrew Brown Managing Director Tidewater Investments Limited (02) 8258 0011 / 0418 215 255