Securities Commission Bans Finance Co. Prospectus

19 March 2007

News release

Securities Commission Bans Finance Company Prospectus

The Securities Commission has cancelled the prospectus of finance company Classic Capital Limited. The prospectus was banned because it omitted material information.

Classic Capital Limited’s sole director, Mr Keith McCoy is bankrupt, banned from management, and facing charges of forgery and dishonestly using his position as a company officer, all in Australia. The prospectus did not state these facts.

“A prospectus must contain all material information about an offer of securities,” says Kathryn Rogers, Director of Primary Markets at the Securities Commission.

“Mr McCoy’s bankruptcy and management ban relate directly to his competence to handle investors’ money and to run a finance company. The fact that he is facing criminal charges, although these have not yet been heard, would also be likely to influence people deciding whether or not to invest.”

Mr McCoy told the Commission that he is appealing the management ban and that the criminal case has not yet been decided. He agreed that the prospectus should be cancelled.

Classic Capital had been seeking to raise $15 million by issuing secured debenture stock. The Commission understands that no money had been invested.

The Commission thanks the Australian Securities and Investments Commission for its assistance in this matter.

ENDS

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