Vector Limited announced today that the interest rate on the Capital Bonds for the period from 15 December 2006 until the next election date on 15 June 2012 will be 8.0%.

Under the amended conditions of the bonds, the interest rate for the bonds is set at the greater of 8.0% and the 5.5 year swap rate +0.90% on 14 December at 3pm.

The 5.5 year swap rate at 3pm on 14 December was 7.09%. Therefore, the interest rate on the bonds has been set at 8.0%