City Link

29 December 2014

BETTER CAPITAL PCC LIMITED: 2012 CELL

The board of Better Capital PCC Limited is disappointed to report that it was advised by BECAP12 GP Limited (the "GP") that the City Link group ("City Link"), an investment within BECAP12 Fund LP (the "2012 Fund"), has been placed into administration. This statement is being released at the first available opportunity following the Market closure.

Unfortunately the appointment of an administrator was leaked to the media ahead of the intended announcement. The directors very much regret the impact on the employees of City Link receiving such bad news on Christmas Day.

In the Company's Interim Financial Report as at 30 September 2014, the Board reported that City Link was experiencing a continued lack of profitability and that various options to maximise the value of the investment were being considered. At this time, the investment was written down by 50% from £40 million to £20 million, such value being determined on an estimated liquidation valuation basis.

Following a very detailed review of City Link's strategy and prospects, including unsuccessful discussions with a number of counterparties to effect a sale on a going concern basis, the GP concluded that it was inappropriate to commit further capital from the 2012 Fund. Accordingly, in light of continued substantial losses, City Link could not continue as a going concern, which resulted in the appointment of Messrs. Kelly, King and Lukic of Ernst & Young LLP as Administrators on 24 December 2014.

The Administrators will begin the process of realising City Link's assets. The 2012 Fund's investment in City Link was structured as secured capital loans to protect its interests in such a process. While the Company's interim valuation of the 2012 Fund reflected an estimated liquidation valuation basis as at 30 September 2014, this estimate is inevitably subject to modest uncertainty and to the effects of intervening trading. The ultimate outturn is currently expected to be reasonably close to the 30 September valuation.

Enquiries:

Better Capital PCC Limited +44 (0)1481 716 000

Jon Moulton (Director)

Better Capital LLP +44 (0)20 7440 0840

Rob Asplin (Managing Director)

Powerscourt (PR enquiries)

Justin Griffiths 07809 525747