CVC LIMITED — Capital/Financing Update 2004

Jul 7, 2004

Level 42 AAP Centre, 259 George Street, Sydney NSW 2000 Austrolia fel: (02) 9087-8000 Fax: (02) 9087-8088 www.cycltd.com.au

2004 Full Year Profit Guidance

Profit Guidance

The Group's Profit Before Taxation for the year ending June 30, 2004 is forecast, subject to audit and a final review of investment carrying values, to be approximately \$13.2 million. This profit is calculated after charging an estimated \$2.8 million of performance fees payable in accordance with the management agreement between the Company and CVC Investment Managers Pty Limited ("CVCIM").

However, if the proposal for the Company to agree to a settlement of performance fees, explained below, is accepted by shareholders, the Group's Profit Before Taxation for the vear ending June 30, 2004 will reduce to approximately \$12 million.

The Group's Profit Before Taxation for the year ended June 30, 2003 was \$5.4 million.

Settlement of Performance Fees

As foreshadowed in the Company's 2003 Annual Report and further explained in an announcement to The Australian Stock Exchange Limited ("ASX") on June 1, 2004, the Company proposes to restructure by acquiring the investment management business of CVCIM.

The full details of the proposed restructure were included in a notice of general meeting of shareholders of the Company lodged with ASX today. A key condition of the proposed acquisition is that shareholders concurrently approve a final settlement payment of \$4 million to CVCIM to extinguish all performance fees payable, including the amount in respect of the 2003-04 financial year, in accordance with the management agreement between the Company and CVCIM.

If the restructure, including the settlement, is approved by shareholders: the expense for performance fees included in the 2003-04 results will increase, and Profit Before Tax will decrease, by approximately \$1.2 million. However, the Company will have thereby removed the liability for any future performance fees as well as the contingent liability to retrospective performance fees.

For further information please contact Mr Alexander Beard at the Company on (02) 9087 8000.

CVC Limited 8 July 2004