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MVG / MVGP - Mvela Group - Share Buy Back Announcement Mvelaphanda Group Limited (Incorporated in the Republic of South Africa) (Registration number 1995/004153/06) Ordinary share code: MVG & ISIN: ZAE000060737 Preference share code: MVGP ISIN: ZAE000073540 ("Mvela Group" or "the company") Share buy back announcement 1. Repurchase Further to the announcement on SENS dated 14 May 2007 in which Mvela Group announced its intention to acquire up to 5% of Mvela Group`s issued ordinary shares in the open market, Mvela Group announces the repurchase of 13 408 508 (3.0% of Mvela Group`s issued ordinary shares) of the company`s own ordinary shares on the open market of the JSE Limited ("JSE") ("the share repurchase"), acting on the general authority granted to the directors by Mvela Group shareholders at the annual general meeting held on 27 January 2007 ("the general authority"). The share repurchase was conducted from 16 March 2007 to 27 July 2007. 2. Details of the cumulative share repurchases Details of the cumulative share repurchases as at 17H00 on 27 July 2007 are set out below: * Number of ordinary shares repurchased 13 408 508 * Percentage of the company`s issued ordinary shares 3.0% on the date of the granting of the general authority * Total value of ordinary shares purchased R149 736 109 * Highest price paid per ordinary share repurchased 1 161 (cents) * Lowest price paid per ordinary share repurchased 1 075 (cents) * Average price paid per ordinary share repurchased 1 117 (cents) * Number of ordinary shares which may still be 75 191 537 repurchased in terms of the general authority * Percentage of Mvela Group`s issued ordinary shares 17.0% which may still be repurchased in terms of the general authority. 3. Source of funds The share repurchase was implemented using existing cash resources. 4. Directors` opinion The directors of Mvela Group have considered the effects of the share repurchase and are unanimously of the opinion that: * the company and its subsidiaries will be able to meet their debt obligations in the ordinary course of business for a period of 12 months after the date of this announcement; * the assets of the company and its subsidiaries, fairly valued in accordance with the accounting policies used by the company in its financial statements for the year ended 30 June 2006, exceed the liabilities of the company and its subsidiaries; * the issued capital and reserves of the company and its subsidiaries are adequate for the purposes of the business of the company and its subsidiaries for a period of 12 months after the date of this announcement; and * the working capital available to the company and its subsidiaries is sufficient for the company and its subsidiaries` requirements for a period of 12 months after the date of this announcement. 5. Financial effects of the repurchase The table below sets out the pro forma financial effects of the share repurchase on Mvela Group`s unaudited earnings per ordinary share, headline earnings per ordinary share, fully diluted earnings per ordinary share and fully diluted headline earnings per ordinary share for the six months ended 31 December 2006, as well as Mvela Group`s net asset value per ordinary share and net tangible asset value per ordinary share at 31 December 2006. This pro forma information has been prepared for illustrative purposes only and, because of its nature, may not give a true reflection of the actual financial effects on Mvela Group. The directors are responsible for the preparation of the pro forma financial information. Unaudited
six months Pro forma ended after the 31 December share % 2006 Repurchase Change
(1) (2) (3) Earnings per ordinary 166.8 171.0 2.5 share (cents) Headline earnings per 187.0 191.8 2.6 ordinary share (cents) Fully diluted earnings per 151.5 154.7 2.1 ordinary share (cents) Fully diluted headline 169.4 173.2 2.2 earnings per ordinary share (cents) Net asset value per 1 058.2 1 055.6 (0.2) ordinary share (cents) Net tangible asset value 898.1 891.1 (0.8) per ordinary share (cents) Notes: 1. The "Unaudited six months ended 31 December 2006" column of the table is Mvela Group`s unaudited results for the six months ended 31 December 2006, which were published in the press on 7 March 2007. 2. The "Pro forma after the share repurchase" column of the table is calculated assuming that the ordinary shares had been repurchased on 1 July 2006 with the funds in hand on which there would have been a loss of interest received, calculated at an after-tax rate of 6.0% per annum. 3. The percentage change columns are calculated with reference to the "Unaudited six months ended 31 December 2006" column. 6. JSE listing The ordinary shares repurchased will not be cancelled but will be retained by a wholly-owned subsidiary of Mvela Group. Accordingly, the ordinary shares will continue to be listed on the JSE. Sandton 2 August 2007 Sponsor Deutsche Securities (SA) (Proprietary) Limited Date: 02/08/2007 09:41:52 Supplied by www.sharenet.co.za Produced by the JSE SENS Department.
