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MFS LIMITED – SHAREHOLDER UPDATE

Ownership Review of the Stella Group
The Board of MFS Limited (MFS) has today requested that its securities be voluntarily
suspended from trading on the ASX.
As advised to the market on Monday 21 January, MFS had received unsolicited proposals from a
number of parties in relation to Stella. Since then further proposals have been received. The
proposals vary in nature and could involve the sale of a majority stake in Stella. The
consideration for each proposal is cash.
MFS is presently in detailed discussions with a preferred party interested in acquiring a
substantial interest in Stella. MFS is aiming to reach an agreement with either that party or an
alternate party within the next two weeks. The proceeds of any transaction would not only result
in full repayment of all short term maturing debt facilities, but strengthen the financial position of
MFS.
At this stage, the proposals received are conditional on limited further due diligence and
satisfaction of any necessary regulatory approvals.
Given the proposals received and the market reaction to aspects of the demerger proposal
announced on Friday 18 January, MFS has decided to not continue with the structural separation
of Stella from the financial services business in the form proposed.
MFS will continue to keep shareholders informed of any significant developments.
Debt Position
MFS wishes to clarify its debt position. A summary of the MFS group’s debt position is set out
below and in more detail as an appendix to this release.
MFS Group Debt Position – 31 December 2007
$ million Stella MFS (ex Stella) MFS Group
Asset backed facilities - 189 189
Secured term debt 905 150 1,055
Unsecured notes - 443 443

Total debt 905 782 1,687
Cash (102)
1
(34) (136)
1

Net debt 803 748 1,551
1. Excludes client cash of $48 million held in the travel services business

The vast majority of MFS’ existing debt is not required to be repaid or refinanced until after
31 December 2010:

MFS Group Debt Maturation Profile - 31 December 2007
$ million Stella MFS (ex Stella) MFS Group
< 3 months - 2202
2202

3 months – 1 year - - -
1 year - 3 years - 119 119
3 years – 5 years - 443 443
> 5 years 905 - 905
Total 905 782 1,687
2. Includes asset backed facilities totalling $65 million without a fixed term (primarily margin
loan facilities)

There has been no material change to the net debt position since 31 December 2007.