Volta Finance Limited (AMS:VTA) VOLTA FINANCE

Volta Finance Limited (AMS:VTA) NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES

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Guernsey, 16 January 2009 - Volta Finance Limited (the "Company" or "Volta Finance" or "Volta") has published its December monthly report. The full report is attached to this release and is available on Volta Finance Limited's financial website (www.voltafinance.com).

Gross Asset Value

+---------------------------------------------------------+ | | At 31.12.08 | At 28.11.08 | |-----------------------------+-------------+-------------| | Gross Asset Value (GAV / €) | 63,205,615 | 73,036,443 | |-----------------------------+-------------+-------------| | GAV per share (€) | 2.10 | 2.43 | +---------------------------------------------------------+

As of the end of December 2008, the Gross Asset Value (the "GAV") of Volta Finance Limited (the "Company", "Volta Finance" or "Volta") was €63.2m or €2.10 per share, a decrease of €0.33 from €2.43 per share at the end of November 2008.

The December mark-to-market variations* of Volta Finance's asset classes have been: -27.1% for ABS investments, -22.1% for CDO investments and +10.6% for Corporate Credit investments.

The significant decrease of the GAV in December is the consequence of the continual increase in discount margin of structured credit products, following the ongoing rating downgrades, price declines and the occurrence of defaults in their underlying assets in conjunction with the significant worsening of the economic environment. The increase in value of the Corporate Credit assets is mainly due to the accrual of the next coupon payment of ARIA II given that its accrued interest represents nearly 80% of its end of December price.

MARKET ENVIRONMENT AND LATEST DEVELOPMENTS

In December, the financial and economic crises have continued to extend their reach, with deflation now setting in. In such an environment, we can only expect prices of structured credit assets to continue decreasing

From the end of November to the end of December, the spread of the 5y European iTraxx index (series 10) widened from 170 bps to 177 bps and its Crossover counterpart (5y iTraxx European Crossover index series 10) continued to widen from 889 bps to 1027 bps. According to the CSFB Leverage Loan Index, the average price for US liquid first lien loans declined from 65.56% to 62.25%.**

VOLTA FINANCE PORTFOLIO

As regards the Company's Corporate Credit holdings, as already disclosed in the previous monthly report, one of the three assets held by the Company has been affected by the Tribune Co bankruptcy. No other default impacted these positions in December and in the first two weeks of January. Due to their first loss position, the Corporate Credit holdings of the Company remain at risk of the occurrence of defaults in this particularly difficult economic environment.

As regards Volta's positions in residual and mezzanine debt of CLOs, since the end of December, nine out of the 19 CLOs in which the Company holds either a residual position or debt position have been affected by the default of Lyondell Basell Industries. At the time of publishing this report, taking into account the consequences of this default and the latest reports from their respective CLO managers, six out of the 13 residual CLO holdings of the Company are likely to suffer a diversion of their current payments.

The current diversions of cash flows are the consequence of the combination of a significant increase in CCC or lower-rated assets in the underlying loan portfolios following massive rating downgrades, an increase in losses due to defaults or to distressed sales, and for three of CLO positions, also the consequence of the resetting at a very high level, between end of September and mid-October, of the Libor rate that dictates the level of payment due to debt holders.

The worsening of the economic environment is expected to continue having a negative impact on the expected cash flows of most of the CLO residual holdings of the Company. The Company will have to reassess in the coming months the expected cash flows for all of its CLO positions and expects that it will lead to significant impairments for its CDO residual holdings. On the basis of the information available at the time of the report publication, the 16% of par average price for the 13 CLO residual holdings probably overestimates the impaired amount that will be recognised on these assets once their expected cash flows have been reassessed. The result of this reassessment will be disclosed in the semi-annual report of the Company to be published towards the end of March. At the time of writing this comment, the Company does not expect to take any impairment for the eight positions in debt of CLOs held by the Company.

As regards Volta's six UK non-conforming residual holdings, the recent payments and the remittance reports received in December on most of the Company's holdings showed further deterioration affecting both the price and the expected cash flows of these assets. The current value of these positions (€1.2m) broadly reflects the current expected cash flows from these assets.

The previous monthly reports highlighted a liquidity risk incurred by the Company due to the margin calls on the currency hedge of the USD investments (mostly residuals of CLOs). This risk has been contained through the purchase of USD Calls. This means that most of the €20m of cash (€0.66 per share) held by the Company can be made available for purposes such as investing, paying a dividend for the current semi-annual period, and paying operating expenses.

In December, Volta's assets have generated the equivalent of €0.7m of cash flows (non-Euro amounts converted into Euro using end-of-month currency cross rates), bringing the total of cash flows generated since the start of the current semi-annual period that begun on the 1 August 2008 to €9.2m, compared to €13.9m for the same 5-month period in 2007.

* "Mark-to-market variation" is calculated as the Dietz-performance of the assets in each bucket, taking into account the MtM of the assets at month-end, payments received from the assets over the period, and assuming that changes in cross currency rates have no impact given that Volta Finance implements a currency hedge on non-Euro assets. Nevertheless, some residual currency effects could impact the aggregate value of the portfolio when aggregating each bucket. Index data source: Markit, Bloomberg

(Full monthly report in attachment or on www.voltafinance.com)

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ABOUT VOLTA FINANCE LIMITED

Volta Finance Limited is incorporated in Guernsey under the Companies (Guernsey) Laws, 1994 to 1996 (as amended) and listed on Euronext Amsterdam. Its investment objectives are to preserve capital and to provide a stable stream of income to its shareholders through dividends. For this purpose, it pursues a multi-asset investment strategy targeting various underlying assets. Volta Finance's basic approach to its underlying assets is through vehicles and arrangements that provide leveraged exposure. The exposure to those underlying assets is gained through direct and indirect investment in five principal asset classes: corporate credits, CDOs, ABS, leveraged loans, and infrastructure assets.

Volta Finance has appointed AXA Investment Managers Paris, an investment management company with a division specialised in structured credit, for the investment management of all its assets.

ABOUT AXA INVESTMENT MANAGERS

AXA Investment Managers (AXA IM) is a multi-expert asset management company within the AXA Group, a global leader in financial protection and wealth management. AXA IM is one of the largest European-based asset managers with €550 billion in assets under management as of the end of March 2007. AXA IM employs approximately 2,800 people around the world and operates out of 19 countries.

CONTACTS

Company Secretary Mourant Guernsey Limited volta.finance@mourant.com +44 (0) 1481 715601

Portfolio Administrator Deutsche Bank voltaadmin@list.db.com

For the Investment Manager AXA Investment Managers Paris Julien Laplante julien.laplante@axa-im.com +33 (0) 1 44 45 94 92

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This press release is for information only and does not constitute an invitation or inducement to acquire shares in Volta Finance. Its circulation may be prohibited in certain jurisdictions and no recipient may circulate copies of this document in breach of such limitations or restrictions.

This press release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration with the United States Securities and Exchange Commission or an exemption from registration under the U.S. Securities Act of 1933, as amended (the "Securities Act"). Volta Finance has not registered, and does not intend to register, any portion of any offering of its securities in the United States or to conduct a public offering of any securities in the United States.

* This document is being distributed by Volta Finance Limited in the United Kingdom only to investment professionals falling within article 19(5) of the Financial Services and Market Act 2000 (Financial Promotion) Order 2005 (the "Order") or high net worth companies and other persons to whom it may lawfully be communicated, falling within article 49(2)(A) to (E) of the Order ("Relevant persons"). The shares are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire the shares will be engaged only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents. Past performance cannot be relied on as a guide to future performance.

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This press release contains statements that are, or may deemed to be, "forward-looking statements". These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "anticipated", "expects", "intends", "is/are expected", "may", "will" or "should". They include the statements regarding the level of the dividend, the current market context and its impact on the long-term return of Volta's investments. By their nature, forward-looking statements involve risks and uncertainties and readers are cautioned that any such forward-looking statements are not guarantees of future performance. Volta Finance's actual results, portfolio composition and performance may differ materially from the impression created by the forward-looking statements. Volta Finance does not undertake any obligation to publicly update or revise forward-looking statements.

Any target information is based on certain assumptions as to future events which may not prove to be realised. Due to the uncertainty surrounding these future events, the targets are not intended to be and should not be regarded as profits or earnings or any other type of forecasts. There can be no assurance that any of these targets will be achieved. In addition, no assurance can be given that the investment objective will be achieved.

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This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.

LINK: http://hugin.info/137695/R/1282969/287181.pdf

Volta Finance Limited

http://www.voltafinance.com

ISIN: GG00B1GHHH78

Stock Identifier: XAMS.VOLTA

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Volta Finance Limited

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Volta Finance Limited (AMS:VTA) VOLTA FINANCE - DECEMBER MONTHLY REPORT

Volta Finance Limited

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