Cash management update

Graphite Enterprise Trust PLC
24 October 2005


                         ANNOUNCEMENT TO STOCK EXCHANGE

                         GRAPHITE ENTERPRISE TRUST PLC

                                24 October 2005


                             CASH MANAGEMENT UPDATE


On 21 October 2005, Graphite Enterprise Trust PLC ('Graphite Enterprise' or the
'Trust') purchased a call option ('Option') over the FTSE 100 Index ('Index')
with a three year maturity.  The cost of the Option was £14.0 million, which has
been paid in cash, and the nominal principal is £120.0 million.

The Option forms a key part of Graphite Enterprise's cash management strategy
and its effect is to give the Trust exposure to a £120.0 million investment in
the Index at an opening level of 5,142.  If the Index increases, the Option will
give the Trust exposure to this increase.  If the Index falls, the Option will
fall in value.  However, the maximum fall is limited to the original £14.0
million cost.  In determining the net asset value of the Trust, the Option will
be included at its market value.

Another element of the cash management strategy is our continuing interest in
buying back shares if they are available in reasonable volumes at an attractive
discount.  In the year to date £12.0 million has been used to buy back a total
of 4.1 million shares, equivalent to 4.5% of the share capital at 1 January
2005.

Our programme of increasing commitments to third party funds continues.  In
recent months we have committed €15.0 million (£10.3 million) to CVC European
Equity Partners IV and €30.0 million (£20.5 million) to Candover 2005 Fund.  New
commitments in the year now total £81.5 million.



For further information please contact:

William Eccles                   020 7825 5300

Rod Richards                     020 7825 5300






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