MASSMART - ANNUAL GENERAL MEETING RELEASE

MASSMART HOLDINGS LIMITED

MASSMART SALES UP 11,5 PER CENT - PROFIT BUDGETS EXPECTED TO BE MET

SALES OF MASSMART HOLDINGS FOR THE 21 WEEKS TO SUNDAY 19 NOVEMBER 2000 ARE 11,5
PER CENT UP ON THE SAME PERIOD LAST YEAR AND, IF THIS GROWTH RATE,

APPROXIMATELY HALF OF WHICH IS ATTRIBUTABLE TO COMPARABLE STORES, IS SUSTAINED,
SALES FOR THE FULL YEAR TO JUNE 2001 WILL APPROACH R12-BILLION EXECUTIVE
CHAIRMAN MARK LAMBERTI SAID TODAY (21 NOVEMBER).

"BARRING A DETERIORATION OF THE ECONOMY OR A FURTHER DECLINE IN CONSUMER
CONFIDENCE - PARTICULARLY OVER THE CRUCIAL NEXT FIVE WEEKS - WE EXPECT TO
ACHIEVE OUR PROFIT BUDGETS FOR THE HALF YEAR TO DECEMBER AND THE FULL YEAR TO
JUNE 2001, LAMBERTI TOLD SHAREHOLDERS AT MASSMART'S MAIDEN ANNUAL GENERAL
MEETING IN SANDTON.

PROFIT MARGINS, HE ADDED, WERE EXPECTED TO IMPROVE.

LAMBERTI SAID THAT THE 11,5 PER CENT INCREASE IN SALES - WHICH IS FRACTIONALLY
AHEAD OF THE 11,2 PER CENT FIRST-QUARTER GROWTH RATE REPORTED IN THE ANNUAL
REPORT - IS "PARTICULARLY GRATIFYING GIVEN THE LOW RATE OF INFLATION IN MOST OF
OUR PRODUCT CATEGORIES, OLD MUTUAL'S DEMUTUALISATION IN THE SAME PERIOD LAST
YEAR AND OUR SIGNIFICANTLY LOWER RATE OF NEW STORE DEVELOPMENT THIS YEAR."
OUTLINING A NUMBER OF OPERATIONAL DEVELOPMENTS, SOME OF WHICH WILL HAVE A
BEARING ON MASSMART'S RESULTS, LAMBERTI SAID

* A MARKED IMPROVEMENT IN THE PERFORMANCE OF DION AND A STRUCTURAL REDUCTION IN
THE GROUP'S EXPENSE BASE, WILL RESULT IN A HIGHER RATE OF GROWTH OF THE
TRADITIONALLY LOWER SECOND HALF EARNINGS

* THE ESHIELD B2B E-COMMERCE INITIATIVE HAS EXCEEDED EXPECTATIONS, WITH OVER
R200-MILLION CUMULATIVE SALES SINCE ITS LAUNCH IN OCTOBER 1999 AND MONTHLY
SALES CURRENTLY IN EXCESS OF R50-MILLION. THIS TRANSFER OF SALES FROM

TRADITIONAL COMMUNICATIONS CHANNELS TO THE INTERNET AUGURS WELL FOR AN ULTIMATE
REDUCTION OF THE EXPENSE BASE, WHICH WILL JUSTIFY THE INVESTMENT - R2,5-MILLION
OF WHICH HAS BEEN EXPENSED IN THE CURRENT YEAR

* DURING THE FIRST HALF OF THIS FINANCIAL YEAR, TWO NEW GAME STORES WERE OPENED
IN CAPE TOWN - AT SOMERSET WEST AND CANAL WALK - AND A CCW OUTLET WAS

ESTABLISHED IN RUSTENBURG. THIS COMPARES WITH FOUR  GAME AND TWO CCW STORES
OPENED IN THE SAME 1999 PERIOD.

TURNING TO THE RETAIL ENVIRONMENT, LAMBERTI MADE THE POINT, ONCE AGAIN, THAT
THE SOUTH AFRICAN CONSUMPTION PROFILE IS UNDERGOING FUNDAMENTAL STRUCTURAL
TRANSFORMATION - "REFLECTED MOST VISIBLY IN DEMAND FOR BLATANT VALUE ACROSS ALL
SOCIO-ECONOMIC SEGMENTS AND PRODUCT CATEGORIES.

"THIS TRANSFORMATION HAS FOR THE MOST PART BEEN ACCOMPANIED BY A FRAGILE
ECONOMIC RECOVERY DESPITE SOUND MONETARY AND FISCAL MANAGEMENT. IN RECENT
MONTHS THERE HAS BEEN A DECLINE IN CONSUMER CONFIDENCE, REPORTED BY THE
STELLENBOSCH BUREAU FOR ECONOMIC RESEARCH TO HAVE FALLEN TO ITS LOWEST LEVEL
SINCE 1993," SAID LAMBERTI.

"MASSMART'S STRATEGIES AND STRUCTURES HAVE ANTICIPATED THE ENVIRONMENT IN WHICH
WE NOW FIND OURSELVES. MOST OF OUR EFFORT IS DEVOTED TO DELIVERING

EXTRAORDINARY VALUE TO CUSTOMERS THROUGH INNOVATIVE MERCHANDISING OFF THE
LOWEST SUSTAINABLE EXPENSE BASE," HE ADDED.

ON THE UNBUNDLING BY WOOLTRU, CURRENTLY A 41 PER CENT SHAREHOLDER IN MASSMART,
LAMBERTI SAID: "WE WELCOME THIS PROCESS, WHICH IS EXPECTED TO INCREASE THE
LIQUIDITY OF MASSMART'S SHARES AND LOOK FORWARD TO FURTHER ANNOUNCEMENTS BY
WOOLTRU IN THIS REGARD."

COMMENTING ON THE RECENT INTERCHANGE BETWEEN THE SOUTH AFRICAN REVENUE SERVICES
AND RETAILERS, LAMBERTI SAID:

"WE APPLAUD THE RECENT EFFORTS OF SARS TO CURTAIL TAX EVASION IN THE

ELECTRONICS SECTOR AND LOOK FORWARD TO THEIR EXTENDING THIS INITIATIVE INTO ALL
SECTORS OF WHOLESALE AND RETAIL. MASSMART HAS MAINTAINED AN ACTIVE POLICY OF
AVOIDING SUSPECT SUPPLIERS AND WILL CONTINUE TO CO-OPERATE WITH SARS IN
ELIMINATING ANY ILLEGAL ACTIVITY WITHIN THE SUPPLY CHAIN."
ENDS