CVC LIMITED — Capital/Financing Update 2008

Jan 7, 2008

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Company Update

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Half- Year Profit Guidance:

In view of the changed macro investment environment, CVC Limited (ASX: CVC) would like to give the following update in relation to the impact of that environment on CVC’s operations and outlook.

The Company advises that it anticipates that the December 2007 half year net profit will approximate $12 million after tax, an increase of 50% compared to the previous corresponding period (December 2006: $7.9 million). This profit has been substantially derived from sales of listed investments including the holding in Trinity Group Limited.

Operations Update:

CVC results have historically been substantially driven by the timing of realisations of major investments.

Recently, the Company has pursued a strategy of diversifying income sources by increasing recurrent revenue, particularly from funds management and property financing, to supplement the capital realisations.

As a result of recent significant negative changes in market sentiment towards investment products and property financing which the company was seeking to grow significantly, it is unlikely that the Company will achieve the scale of funds under management required to meaningfully contribute to earnings in the short to medium term. This is particularly the case for the Company’s managed investment the CVC Trinity Property Fund, which the Company had targeted to grow to $200 million in funds under management by December 2008.

Accordingly, for 2008 and beyond, profits are likely to remain dependent upon realisations of investments until such time as the Company is able to achieve its objective of deriving a substantial portion of its annual income from recurrent sources. This remains our objective and we will aim to achieve this goal over a longer time horizon. CVC is extremely fortunate that it has no debt.

Dividend Guidance:

Given the Company’s long-standing policy of being a capital growth investment group and in light of not only the delayed growth of recurrent income but also the need to remain appropriately resourced for anticipated investment opportunities, the Directors have resolved to reduce the dividend to a 3 cents fully-franked interim dividend to be paid in February 2008 with guidance of a further 3 cents fully-franked final dividend to be paid in October 2008.

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Capital Management:

The current share price of the Company is materially below the net asset per share value of the Company. In these circumstances, the Directors advise that they consider it appropriate that the Dividend Reinvestment Plan be suspended at this time until such time as there is a better correlation between the share price and the underlying net asset value per share.

For the same reasons, and as announced to the market on 21 December 2007, the Company anticipates continuing to buy back shares on market at various times.

Enquires:

Alexander Beard, CVC Limited – (02) 9087 8000

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