TASTE HOLDINGS LIMITED - UPDATE ON FISH AND CHIP ACQUISITION

UPDATE ON FISH AND CHIP ACQUISITION

TASTE HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2000/002239/06)
JSE code: TAS
ISIN: ZAE000081162)
("Taste")

UPDATE ON FISH AND CHIP ACQUISITION

Further to the announcement dated 18 January 2012 wherein Taste advised
shareholders about the acquisition by one of its wholly-owned subsidiaries, Buon
Gusto Cuisine (Pty) Ltd (“Buon Gusto”), of the The Fish & Chip Co. brand (“the
business”) operated by the Traditional Fish & Chips (Pty) Ltd and Praxia
Nathanael (“the sellers”), the board wishes to further advise shareholders that:

   -   On 31 January 2012 Buon Gusto made a cash payment of R45 million directly
       to the sellers, in accordance with the provisions of the sale of business
       agreement (“agreement”).

   -   The sellers handed over the business, and full control thereof, to Buon
       Gusto on 1 February 2012 and the business has since been fully integrated
       into the operations of Buon Gusto.

   -   A dispute subsequently arose in regard to the set-off account, which
       consists primarily of deposits paid by prospective franchisees to the
       sellers.   Buon  Gusto   referred  this   dispute  to   its  auditors for
       determination, in accordance with the provisions of the agreement.

   -   The sellers thereafter purported to cancel the agreement and have issued
       summons in this regard.

   -   Buon Gusto does not accept the purported cancellation and deems it to be
       entirely without foundation. It is defending the action and will file a
       counterclaim in due course. It is furthermore considering instituting
       various other actions to safeguard its rights, including enforcing the
       restraint of trade against the sellers and/or Stelio Nathanael.

   -   Taste’s attorneys have advised that they anticipate the matter to be heard
       in the latter part of 2013.

Shareholders will be kept appraised of further developments.

JOHANNESBURG
8 AUGUST 2012

SPONSOR
VUNANI CORPORATE FINANCE

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