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CVC LIMITED Capital/Financing Update 2008

Jun 26, 2008

64728_rns_2008-06-26_c72a2870-5bdb-4aa7-a763-932e9f8e16d6.pdf

Capital/Financing Update

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Company Update

Full - Year Profit Guidance:

Following the volatility experienced in global capital markets the Board of Directors of CVC Limited (ASX: CVC) announced in January 2008 that such turmoil would impact the current and future generation of profits. As the last six months has seen a further deterioration in equity capital markets the Company has determined that it has not been appropriate to exit any key investments. Additionally, CVC has significant shareholdings in a number of listed investments which are required to be equity accounted, including CVC Trinity Property Fund, Cellnet Limited, Pro-Pac Packaging Limited and Mercury Mobility Limited which have share prices that are trading below CVC’s current carrying value. The Board of Directors have decided that in these circumstances it will be prudent to raise an impairment provision against those investments where the share price has been consistently lower than book value.

It is now expected that after providing for the impact of impairment charges and write-downs of approximately $8 million the full year net operating profit after tax will be approximately $7 million (2007: $30.8 million) subject to the finalisation of the year end audit.

Notwithstanding the current impact on operating profit, the volatility in capital markets has presented CVC with a significantly improved flow of investment opportunities and with cash holdings in excess of $50 million is well placed to capitalise on these opportunities.

Dividend Guidance:

Although the adjustments will impact the current year operating profit the final dividend guidance of 3 cents fully-franked final dividend payable in October 2008 does not change.

Capital Management:

The current share price of the Company is still materially below the net asset backing per share of the Company which at the date of this announcement is approximately $1.68 per share and is subject to year end audit. Under these circumstances, the Directors advise that CVC will continue the buy-back of shares on market as announced on 11 February 2008.