CVC LIMITED — Capital/Financing Update 2007

Nov 4, 2007

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Sub-Underwrites Cellnet $11.7 Million Rights Issue

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5 November 2007

Company Announcements Australian Securities Exchange

Dear Sirs

CVC To Sub-Underwrite Cellnet $11.7 Million Rights Issue

CVC Limited (CVC) announces that it will fully sub-underwrite the Rights Issue announced by Cellnet Group Limited (Cellnet, ASX:CLT).

Cellnet announced on Friday 2[nd] November 2007 a 2 for 5 non-renounceable rights issue to all Australian and New Zealand registered ordinary shareholders of 21,239,730 shares at $0.55 per share to raise approximately $11.7 million, following a strategic review of the company by Cellnet’s new board.

Part of that review has been to consider the capital structure of Cellnet, and in particular the mix between equity and debt funding. From its public announcement, Cellnet states that it considers that the financial position of the company would be improved by replacing bank debt with equity funding for working capital as part of a strategy to de-risk the business. Accordingly, equity is being sought under a rights issue for which the primary application of funds would be the reduction of bank debt facilities.

The offer to Cellnet shareholders will be underwritten by Shaw Corporate Finance Pty Limited and fully sub-underwritten by CVC Limited. CVC is currently a substantial shareholder of Cellnet with a 22.9% interest in the company. CVC proposes fully participating in its entitlement under the rights issue, as well as acting as sub-underwriter and thereby subscribing for any shortfall shares arising out of the offer to Cellnet shareholders.

Taking shortfall shares under this arrangement may result in CVC’s interest in Cellnet increasing above 22.9%. Accordingly CVC’s participation as sub-underwriter in the transaction is subject to shareholder approval at Cellnet's upcoming AGM.

The transaction has been arranged for CVC Limited by CVC Capital Markets, its recently established corporate finance division.

Enquiries:

Alexander Beard, CVC Limited – (02) 9087 8000

Ben Loiterton, CVC Capital Markets – (02) 9087 8000

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