Media Releases

• Investment repayments of $35 million in March quarter
• Debt reduction continues well ahead of schedule
• Overall market conditions remain subdued

Investments Portfolio

In the March quarter, Keybridge continued to manage its investments portfolio with the aim of:

• Bringing forward realisations where they can be achieved at reasonable prices, so as to reduce the Company's level of debt; and
• Protecting the value of remaining investments as much as possible.

In the past three months, the Company achieved investment repayments totalling $35 million. These were spread across the following transactions:

• $10 million from a loan to a listed aviation company;
• $8 million from an Australian property transaction;
• $2 million from a property transaction in the US;
• $7 million of further repayments from a loan to a mining company; and
• $8 million repayment from the sale of a German wind farm.

These repayments were achieved at values approximately consistent with the Company's carrying values at 31 December 2009.

As a result of these repayments and movements in foreign exchange rates, the composition by asset class of Keybridge's investments portfolio as at 31 March 2010 was as follows:

Over the past six months, the Company has had success in bringing forward the realisation of some of its investments. This remains impractical, however, for the majority of its shipping and aviation transactions, which constitute over 70% of remaining investments. Secondary markets for these assets are still affected by a lack of senior debt and by depressed secondary market prices.

Our expectation remains that the realisation of these shipping and aviation investments is likely to occur over a period of approximately the next three years, rather than over the shorter term.

The Company's shipping investments are also impacted by the ability of the current senior lenders to accelerate their loans as a result of the fall in secondary market prices for vessels.

Approximately 50% of Keybridge's shipping transactions have been successful in overcoming this issue. The remainder are yet to achieve a resolution with their lenders and, as a result, the carrying values of these investments in Keybridge's accounts remain at risk.

Debt Facility

Keybridge's corporate debt facility matures in June 2011. Under the terms of the facility, interim repayments of $70.5 million are required to be made by March 2011. Repayments of $57 million have been achieved by the end of March 2010. The Company is confident of achieving the $13.5 million of repayments that are still required over the next 12 months.

Currency Exposure

At 31 March 2010, the approximate currency breakdown of the Company’s assets and liabilities was as follows:

This net foreign currency asset position means that the Company incurs translation losses when the Australian Dollar appreciates in value against the US Dollar and Euro and benefits from translation gains when the Australian Dollar depreciates in value. Over the March quarter, the Australian Dollar appreciated against the USD and the EUR.

Keybridge Capital is a financial services company that has invested in, or lent to, transactions which predominantly are in the core asset classes of property, aviation, shipping and infrastructure.

For further information, please contact: