TEXT-Babcock & Brown Capital increases buyback threshold

(Following is a statement from Australian investment firm Babcock & Brown Capital BCM.AX)

SYDNEY, June 2 - Babcock & Brown Capital Limited ("BCM") today announced that it has increased the threshold of its on-market buy-back program from a maximum of 9.99% of BCM's original issued capital to a maximum of 20% of BCM's original issued capital, or 40 million ordinary shares.

The increase in the on-market buy-back follows Shareholder approval, on 21 April 2008, to buy-back up to 50% of BCM's original issued capital.

The Independent Expert, KPMG, is in the process of finalising their report to the BCM Board on the off-market tender process and BCM has commenced discussions with ASIC and ASX to obtain the necessary regulatory approvals. Further updates will be provided to Shareholders in due course.

BCM advised that it currently holds approximately A$270 million in available cash which has been allocated to capital management programs and a further A$150 million cash reserve to support current investments.