VOLTA FINANCE - JUNE MONTHLY REPORT

Friday, 17. July 2009 19:39
NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN PART, IN
OR INTO THE UNITED STATES

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Guernsey, 17 July 2009 - Volta Finance Limited (the "Company" or
"Volta Finance" or "Volta") has published its June 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 30.06.09 | At 29.05.09 |
|-----------------------------+-------------+-------------|
| Gross Asset Value (GAV / ¤) | 56,239,370 | 56,092,778 |
|-----------------------------+-------------+-------------|
| GAV per share (¤) | 1.86 | 1.86 |
+---------------------------------------------------------+


As of the end of June 2009, the Gross Asset Value (the "GAV") of
Volta Finance Limited (the "Company", "Volta Finance" or "Volta") was
¤56.2m against ¤56.1m at the end of May 2009 leaving the value at
¤1.86 per share unchanged,

The June mark-to-market variations* of Volta Finance's asset classes
have been: +0.3% for ABS investments, +3.2% for CDO investments and
+12.4% for Corporate Credit investments. The GAV is also affected by
the month end price at which intra-month purchased assets are marked
and by fees paid during the month.

Volta's assets have generated the equivalent of ¤0.4m of cash flows
(non-Euro amounts converted into Euro using end-of-month cross
currency rates), bringing the total cash generated for the current
semi-annual period that began on 1st February 2009 to ¤7.5m, compared
with ¤11.5m for the same 5-month period in 2008.

In June, the Company purchased two CDO mezzanine debt assets for a
total of ¤0.8m.

On June 23, during its last quarterly Board meeting, the Company
validated the reduction of some structural fixed costs such as the
board remuneration together with initially fixed fees of some of its
providers. More details will be given in the annual report covering
the annual period ending on 31 July 2009.


MARKET ENVIRONMENT

In June, after two very positive months for most of credit and equity
markets, the credit markets have been torn between the pursuit of the
global recovery in economic sentiments and the reminder from real
economic statistics that the economic situation is still
deteriorating, albeit at a lower pace than few months ago.

The 5y European iTraxx index (series 11) as well as the 5y iTraxx
European Crossover Index (series 11) modestly tightened respectively
from 121 bps to 112 bps and from 725 bps to 713 bps from the end of
May to the end of June 2009. During the same period of time,
according to the CSFB Leverage Loan Index, the average price for US
liquid first lien loans increased for the sixth consecutive month,
from 73.58% to 76.47%.**


VOLTA FINANCE PORTFOLIO

In June, the Company bought two mezzanine debt tranches of European
CDO: ¤2m of nominal of the Serie II tranche of Leveraged Finance
Capital II CLO issued in August 2003 and managed by BNP Paribas
(initially and still rated AA- by S&P and AA3 by Moody's) as well as
¤1.5m of nominal of the Serie III of ADAGIO III CLO issued in July
2006 and managed by AXA IMP (initially and still rated A by S&P and
A2 by Moody's, with a negative outlook from moody's since 4th march
2009).

As regards the Company's Corporate Credit holdings, Jazz III may
suffer in July the default of CIT Group Inc that is considered by
most of market participants as highly probable (the exposure to CIT
Group Inc is 0.65% of the underlying portfolios). Combined with the
deterioration, during the previous months, of the Weighted Average
Risk Factor (WARF) of JAZZ III underlying portfolios, this default,
if occurred, would trigger a significant downward revision of
expected cash flows for the two Jazz III investments. These positions
being priced at 5% of par since the last coupon payment at the end of
March and representing 0.9% of the GAV, it shouldn't however have a
material impact on the GAV of Volta.
The other Corporate Credit asset, ARIA III, representing 13.1% of the
end of June GAV, is not exposed to CIT Group and its ability to pay
cash flows in the future hasn't significantly changed since the last
interim report. Meanwhile, being like Jazz III a first loss position
it remains sensitive to any credit event that could occur.

As regard the Company's residual and mezzanine debt of CLOs
exposures, defaults and downgrades in underlying portfolios continued
to occur but the prices of loans, especially the lower-rated ones,
tended to increase a bit further on average, consequently the number
of residual tranches suffering at least a partial diversion of cash
flows remains stable and all the 10 mezzanine debt tranches held by
Volta, representing 9.9% of the end of month GAV, continue to
perform, in term of cash flows, in line with the assumptions at the
time of their purchase. However, it should be noticed that one
position, the ¤2.5m nominal position in the Class E debt of Euro
Galaxy CLO B.V. representing 0.1% of the end of month GAV, suffered a
significant deterioration of its over-collateralization tests due to
the occurrence of several defaults in the last months. This position
could suffer, if defaults continue to occur in its underlying loans
portfolio at a significant pace, a diversion of its coupon payment in
the coming months or quarters and could have to be impaired at a
later stage. This asset being priced at 3% of par at the end of June,
a further deterioration of its situation shouldn't have a significant
impact on Volta's GAV.

The depressed economic environment and the ongoing wave of downgrades
and defaults are expected to continue having a negative impact on the
expected cash flows of most of the Company's CLO residual holdings,
even if the rebound in loan prices allowed some CLO managers to clean
up some positions and to improve their OC tests. A further
significant deterioration of these parameters could also impact the
payments of the mezzanine debt tranches.

As regards the Company's ABS investments, no particular event has
affected the six UK non-conforming residual holdings. Promise
Mobility, a residual position in a very diversified portfolio of
small and medium German companies remains one of the largest single
exposure of Volta, representing 12.9% of the GAV as of the end of
June. At the time of writing this report this deal continues to
behave, in terms of credit events, in line with or better than what
was expected at the time of purchase despite the particular difficult
economic environment for German small and medium enterprises.

At the end of June, the Company held the equivalent of ¤26.2m of cash
(¤0.87 per share). Most of the cash held by the Company will be used
for investing as well as paying operating expenses and dividends.

The Company is considering that opportunities could be seized in
current market environment in several structured credit sectors.
Mezzanine tranches of CLO and of European ABS or senior tranches of
Corporate Credit portfolio could be considered as the main area for
such investments. Investments will be realised depending on the pace
at which market opportunities could be seized.

* "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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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 ¤485 billion in assets under management as of the
end of December 2008. AXA IM employs approximately 2,900 people
around the world and operates out of 21 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
Serge Demay
serge.demay@axa-im.com
+33 (0) 1 44 45 84 47

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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.

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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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