Guernsey, 13 January 2010 - Volta Finance Limited (the "Company" or "Volta Finance" or "Volta") has published its 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 31.12.10 At 30.11.10
Gross Asset Value (GAV / €) 130,094,813 122,884,986
GAV per share (€) 4.29 4.05

At the end of December 2010, the Gross Asset Value (the "GAV") of Volta Finance Limited (the "Company", "Volta Finance" or "Volta") was €130.1m or €4.29 per share, an increase of €0.24 per share from €4.05 per share at the end of November 2010.

At the time of writing this report, the result of the scrip dividend option that was offered by the Company for the payment of the 2010 final dividend is known. A significant portion of Volta's shareholders (29.6%) decided to reinvest in Volta shares. As a direct result, 448 324 new shares have been issued. Taking into account the dividend payment and new shares issued, adjusted end of December GAV would have been €4.12 per share.

The December mark-to-market variations* of Volta Finance's asset classes have been: +6.7% for ABS investments, +9.0% for mezzanine of CDO investments, +5.0% for residuals of CDO investments and +3.8% for Corporate Credit investments. The increase of the GAV in December reflected an increase in prices of most of Volta's assets in line with the improving outlook from market participants on these assets and the overall tightening of their discount margin.

Volta's assets have generated the equivalent of €1.1m of cash flows in December 2010 (non-euro amounts converted into euro using end-of-month cross currency rates and excluding principal payments from debt assets) bringing the total cash generated during the last six months to €9.6m. This amount can be compared with the amount of €9.3m for the previous six-month period ended in June 2010 (the most recent period which is comparable considering the seasonality of payments).

In December, the Company did not buy any new assets and one short term ABS partially prepaid for €0.2m.

At the end of December and before the payment of the dividend (€3.4m), Volta had €6.3m in cash including €1.8m posted for margin calls in respect to its currency hedge positions.

MARKET ENVIRONMENT
In December, credit spreads tightened in Europe and in the US. The spread of the 5y European iTraxx index (series 14) and the 5y iTraxx European Crossover Index (series 14) decreased respectively from 119 and 522 bps at the end of November to 104 and 437 bps respectively at the end of December. During the same period, credit spreads in the US decreased as illustrated by the 5y CDX main index (series 15) that went from 98 to 85 bps at the end of December 2010. According to the CSFB Leverage Loan Index, the average price for US liquid first lien loans significantly increased from 92.68% to 94.11%.**

VOLTA FINANCE PORTFOLIO
In December, no particular event materially affected the situation of the Corporate Credit holdings. However, it should be mentioned that the first-loss positions in Jazz III and ARIA III remain highly sensitive to any credit event that could occur. At the end of December, the average price of all the assets in this bucket (the first loss positions plus three other corporate credit positions (initially rated AAA and A tranches)) increased from an average price of 39.8% to 41.3% reflecting the tightening of corporate credit spreads.

As regards the Company's investments in residual and mezzanine debt of CLOs, at the end of December, from a total of 51 positions in residual or mezzanine debt of CLOs, one of the mezzanine positions (Alpstar 2A E) and two of the residual positions (Carlyle IX and Northwoods VIII) are still unable to pay their coupon due to over collateralisation test breaches. The 48 other positions are currently paying.

At the end of December the mezzanine debt tranches of CLOs, totalling the equivalent of €96.3m of principal amount, were valued at an average price of 65.3% of par; the classic residual tranches of CLOs, totalling the equivalent of €46.6m of principal amount, were valued at an average price of 50.8%; the rest of the bucket, one loan fund, for the equivalent of €11.5m of principal amount, was valued at 93.8% of par.

As regards the Company's ABS investments, in December, no particular event materially affected the six UK non-conforming residual holdings nor the position held by Volta in Promise Mobility 2006-1. One investment in short-term euro ABS senior tranches held by the Company to enhance its cash management amounted to €1.7m.

The Company considers that opportunities could arise in several structured credit sectors in the current market environment. Amongst others, mezzanine tranches of CLOs and of European ABS or senior tranches of Corporate Credit portfolios could be considered for investments. Potential investments could be made depending on the pace at which market opportunities could be seized and cash is available. From time to time, in line with what has been described in its latest annual report, the Company could be expected to sell some previous assets in order to reinvest the sale proceeds in almost similar investments for which expected cash flows are anticipated to be less uncertain or higher than the ones that were expected from the sold assets.

* "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 ignoring changes in cross currency rates 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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