XEA - De Beleggersadviseur

Guernsey, 17 December 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 30.11.10 At 29.10.10
Gross Asset Value (GAV / €) 122,884,986 115,466,320
GAV per share (€) 4.05 3.81

At the end of November 2010, the Gross Asset Value (the "GAV") of Volta Finance Limited (the "Company", "Volta Finance" or "Volta") was €122.9m or €4.05 per share, an increase of €0.24 per share from €3.81 per share at the end of October 2010.

At the time of writing this report it should be mentioned that the final dividend for 2010 has been approved during the fourth AGM of the Company. Shareholders will have the opportunity to elect to receive the dividend either in shares (one new share for every 20 existing shares), in cash (€0.16 per share) or any combination of both formulas***. End of November GAV did not take into account the effect of the dividend payment on the GAV.

The November mark-to-market variations* of Volta Finance's asset classes have been: +1.3% for ABS investments, +8.5% for mezzanine of CDO investments, +10.2% for residuals of CDO investments and -5.5% for Corporate Credit investments. The increase of the GAV in November mostly reflects an increase in prices of CLO tranches in line with the improving outlook from market participants on these assets and the overall tightening of their discount margin. It encompasses a decrease in the average price of Corporate Credit investments linked to the widening of corporate credit spreads. Part of the GAV increase is coming from the very significant appreciation of the US Dollar during the month (+6.74%).

Volta's assets have generated the equivalent of €1.4m of cash flows in November 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 €9.1m. This amount can be compared with the amount of €9.4m for the previous six-month period ended in May 2010 (the most recent period which is comparable considering the seasonality of payments).

In November, the Company did not buy any new assets and one short term ABS has been sold for €0.9m.

At the end of November, Volta had €5.1m in cash including €1m posted for margin calls in respect to its currency hedge positions.

MARKET ENVIRONMENT
In November, credit spreads widened in Europe, following the widening of European sovereign debt CDS. The spread of the 5y European iTraxx index (series 14) and the 5y iTraxx European Crossover Index (series 14) increased respectively from 97 and 458 bps at the end of October to 117 and 522 bps respectively at the end of November. During the same period, credit spreads in the US were almost stable as illustrated by the 5y CDX main index (series 15) that went from 79 to 84 bps at the end of November 2010. According to the CSFB Leverage Loan Index, the average price for US liquid first lien loans modestly increased from 92.44% to 92.68%.**

VOLTA FINANCE PORTFOLIO
In November, 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. As a reminder (these positions were disclosed in the April monthly Report) these two first-loss positions are exposed, through CDS, to Republic of Greece for the same percentage of their underlying portfolio: 0.5%. In November, 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)) decreased from an average price of 41.8% to 39.8% reflecting the widening of corporate credit and sovereign spreads.

As regards the Company's investments in residual and mezzanine debt of CLOs, at the end of November, 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 November the mezzanine debt tranches of CLOs, totalling the equivalent of €96.6m of principal amount, were valued at an average price of 60.0% of par; the classic residual tranches of CLOs, totalling the equivalent of €46.6m of principal amount, were valued at an average price of 48.9%; the rest of the bucket, one loan fund, for the equivalent of €11.5m of principal amount, was valued at 91.9% of par.

As regards the Company's ABS investments, in November, 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 €2m.

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 will 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 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.

***The payment of dividend in shares in certain jurisdictions may be restricted (for example, such payment may not be offered within the United States or to of the account of US persons without a public offering duly documented and accepted by the relevant U.S. authorities) or prohibited by law. Shareholders are required to inform themselves about and to observe any such restriction and prohibition. Nothing contained in this report constitutes legal advice nor is it to be relied on in making an investment or other decision.

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