October Monthly Report (Correction)

(Please note that the previous version of this release includes an error in the "Financial Calendar and Dividend" section. The recommended dividend is ¤0.40, and not ¤0.35) NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES *** Guernsey, 16 November 2007 - Volta Finance Limited has published its October monthly report. The full report is attached to this release and is available on Volta Finance Limited's financial website (www.voltafinance.com). As of 31 October 2007, Volta Finance Limited's Gross Asset Value per share was ¤9.13, up 2.2% from 28 September 2007. Gross Asset Value +---------------------------------------------------------+ | | At 31.10.07 | At 28.09.07 | |-----------------------------+-------------+-------------| | Gross Asset Value (GAV - ¤) | 274,003,155 | 267,949,590 | |-----------------------------+-------------+-------------| | GAV per share (¤) | 9.13 | 8.93 | +---------------------------------------------------------+ Volta Finance Limited (the "Company" or "Volta Finance") wishes to take the opportunity of the publication of the October monthly report to comment on the October market conditions and their impact on the Gross Asset Value (the "GAV") of the Company, which is up 2.2% from end September to end October 2007. This is also an opportunity to emphasise the absence of impairment at the end of October on any of the assets held by Volta Finance on the basis of our current knowledge. MARKET ENVIRONMENT* The first three weeks of October were reminiscent of the previous month, with relatively stable corporate credit and leveraged loan markets. This relative tranquillity was shaken by the series of negative results from US and European banks, as well as by the announcement of RMBS downgrade moves by various ratings agencies in line with the confirmation of effective increases in delinquency and losses. Write-downs on structured finance assets generally linked to subprime mortgage holdings reignited concerns about the banking sector and an acceleration of the current credit tightening. Warning of more pain to come in the coming quarters by some banks did nothing to soothe market fears. As a result, financial markets underwent significant volatility in the last days of October and into November. As shown by various key economic indicators (e.g. GDP, exports, employment, vehicle sales), the overall US economy has so far remained relatively unaffected by the housing industry woes and the related credit tightening. In a bid to avoid a contagion of the financial sector ills to the economy at large, the Federal Reserve lowered the federal funds rate one quarter point to 4.50% after a previous half-point cut. Along its rate cut, the Fed adopted a neutral stance, indicating that it was concerned both about the upside risk to inflation and the downside risk to growth. After 75 basis points of pre-emptive cut, signs have started to point towards a limited probability for a further round of cuts. This has unnerved the markets, which had so far banked on more rate cuts given the contagion potential of the housing crisis. Corporate credit markets in October were relatively stable, but showed signs of volatility towards the end of the month when financials came under pressure after the worst-than-expected write-down announcements. As a consequence, the first days of trading in November generally had a significant widening effect on spreads. From the end of September to the end of October, the 5y European iTraxx index (series 8) remained relatively stable at 37.2 at the end of the month, while its Crossover counterpart (5y iTraxx European Crossover index series 8) also remained relatively stable at 322.340 at the end of the month. In the US, the 5y CDX index (series 9) widened over 4 bps to 60.29 bps and the 5y CDX Crossover index (series 9) remained relatively stable at 211.660 at the end of the month. The leveraged loans European 5y LevX index (senior series 1) continued to rise in October, gaining approximately 0.5 from its end of September level to 98.32 at the end of October. According to various reports, the backlog of leveraged loans has barely budged in October and arrangers have continued to seek to restructure deals that would appeal to a wider investor base in a bid to lighten their balance sheet. However, CLO liquidity, which has been severely reduced following the decline in risk appetite from structured finance investors, has yet to return to the market. This remains a significant hurdle for a take-off of the primary leveraged loan market. The mark-to-market value of structured finance assets such as CDOs and ABS has continued to remain under pressure. Large investors which had so far fuelled buy-side activity such as Structured Investment Vehicles (SIV) and hedge funds, have continued to experience financing difficulties in October, a direct consequence of the ongoing credit tightening and the wave of downgrades in the US RMBS sector, ultimately leading to a drop in value of some structured finance assets. The average net asset value of SIV, which borrow short-term through commercial paper in order to invest long-term in a wide range of assets including structured finance assets, continued to drop in October, according to ratings agency Fitch. An increase in proven delinquency rates in US RMBS is leading some SIV to unwind, driving the market value of all assets to lower ground even if they have nothing to do with US-RMBS. VOLTA FINANCE PORTFOLIO The overall GAV of Volta Finance increased approximately 2.2% from the end of September to the end of October 2007, mainly driven by the good mark-to-market performance of the leveraged loan TRS. As of the end of October, the expected cash flows of all the assets held by Volta Finance remain in line with what was expected at their purchase. Corporate credit The mark-to-market variation** of Volta Finance's corporate credit investments has been +1.71% in October Leveraged loans The mark-to-market variation of Volta Finance's leveraged loan TRS has been +8.8% in October ABS The mark-to-market variation of Volta Finance's ABS investments has been +0.36% in October CDO The mark-to-market variation of Volta Finance's CDO investments has been -0.6% in October Financial Calendar and Dividend On 18 October 2007, the Company announced a recommended dividend of ¤0.40 per share. Once approved by Volta Finance's shareholders at the Annual General Meeting held in Guernsey on 20 November 2007, the dividend will be paid on 27 November 2007. The ex-dividend and record dates have been set respectively on 21 November 2007 and 23 November 2007. * Index data source: Bloomberg ** "Mark-to-Market (MtM) Variation" is calculated as the change in the mark-to-market value of the bucket, including: 1) the MtM variation of the assets over the period; 2) the payments received from the assets over the period; 3) the MtM variation of the hedging instruments over the period; (Full monthly report in attachment or on www.voltafinance.com) *** 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 Porfolio 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 *** 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. *** 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. ***