CVC LIMITED — M&A Activity 2005

Dec 21, 2005

Manager, Company Announcements Australian Stock Exchange Limited PO Box H224 Australia Square NSW 1215

ASX Announcement

UPDATE ON STARGAMES LIMITED

On 15 November 2005, CVC advised that, in conjunction with an Offer to acquire all the shares in Stargames Limited (ASX code: SGS) by US gaming company, Shuffle Master Inc $("SMI")$ :

• CVC had granted SMI a call option under which it could require CVC to sell to SMI the 16.9 million shares it holds in Stargames Limited for a cash consideration of \$1.55 per share:
• Under the terms of the option, if SMI declares that the Offer is unconditional, it must exercise the option (and thereby acquire CVC's shares in Stargames Limited); and
• If the option was exercised it would crystallise a profit on the shares for CVC of approximately \$16.5 M.

Two key conditions of the Offer were:

• receipt of all necessary government, gaming and regulatory approvals or waivers; and
• a minimum acceptance in respect of 90% of the shares in Stargames Limited.

As an update on the progress of the offer, CVC is pleased to advise shareholders that whilst there are still some remaining outstanding conditions and that SMI has not at this time declared its Offer unconditional:

• SMI has announced that it has received all necessary legal and regulatory approvals; and
• As of yesterday, SMI had provided to ASX a substantial interest notice in respect of 88.1% of Stargames Limited shares.

CVC will continue to monitor the progress of the Offer and keep shareholders informed of any further material developments in this respect.

Alexander Beard Chief Executive Officer

22 December 2005