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Mvela Group - Cash distribution in lieu of a final ordinary dividend Mvelaphanda Group Limited (Incorporated in the Republic of South Africa) Registration number 1995/004153/06 Ordinary share code: MVG Preference share code: MVGP Ordinary share: ISIN: ZAE000060737 Preference share: ISIN: ZAE000073540 ("Mvela Group" or "the Company") CASH DISTRIBUTION TO ORDINARY SHAREHOLDERS OF 13 CENTS PER MVELA GROUP ORDINARY SHARE, IN LIEU OF A FINAL ORDINARY DIVIDEND FOR THE YEAR ENDED 30 JUNE 2006 1. Introduction Shareholders are referred to Mvela Group"s reviewed results for the year ended 30 June 2006 ("the reviewed results")which were announced on SENS on 5 September 2006, in which shareholders were advised that the Board had resolved to declare a cash distribution out of share premium, in lieu of a final ordinary dividend for the year ended 30 June 2006, to Mvela Group ordinary shareholders, by way of a specific return of share premium ("the cash distribution"). 2. Financial effects The cash distribution will have no effect on the issued share capital of Mvela Group and no effect on the number of Mvela Group shares in issue. The table below sets out, for illustrative purposes only, the pro forma financial effects of the cash distribution on Mvela Group"s 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 year ended 30 June 2006, and net asset value per ordinary share and net tangible asset value per ordinary share at 30 June 2006, based on Mvela Group"s reviewed results for the year ended 30 June 2006. The directors of Mvela Group are responsible for the preparation of the unaudited pro forma financial effects. Due to the nature of the pro forma financial effects, they may not fairly present Mvela Group"s financial position, changes in equity, results of operations or cash flows. Reviewed Pro forma Percentage
Notes before the after the change cash cash distribution distribution Earnings per Mvela Group 1,2,3 270.4 269.7 (0.26) ordinary share (cents) Headline earnings per Mvela 1,2,3 322.1 321.5 (0.19) Group ordinary share (cents) Fully diluted earnings per 1,2,4 239.5 238.9 (0.25) Mvela Group ordinary share (cents) Fully diluted headline 1,2,4 285.3 284.7 (0.21) earnings per Mvela Group ordinary share (cents) Net asset value per Mvela 5,6 920.7 908.6 (1.31) Group ordinary share (cents) Net tangible asset value 5,6 760.9 748.8 (1.59) per Mvela Group ordinary share (cents) Net number of Mvela Group 442 320 442 320 ordinary shares in issue (`000) Weighted average number of 423 407 423 407 Mvela Group ordinary shares in issue (`000) Fully diluted net number of 497 020 497 020 Mvela Group ordinary shares in issue (`000)* Fully diluted weighted 478 107 478 107 average number of Mvela Group ordinary shares in issue (`000)* * Calculated on the basis that all Mvela Group preference shares in issue at 30 June 2006 will be converted into Mvela Group ordinary shares after 4 November 2009 Notes: The pro forma financial effects of the cash distribution on Mvela Group are calculated on the following basis: 1. The cash distribution was paid to Mvela Group ordinary shareholders on 1 July 2005. 2. The adjustments to the earnings per Mvela Group ordinary share and headline earnings per Mvela Group ordinary share represent interest forfeited on the cash distributed, calculated at an after-tax rate of 4.97% per annum. 3. The earnings per Mvela Group ordinary share and headline earnings per Mvela Group ordinary share are based on the weighted average number of Mvela Group ordinary shares in issue. 4. The fully diluted earnings per Mvela Group ordinary share and fully diluted headline earnings per Mvela Group ordinary share are based on the fully diluted weighted average number of Mvela Group ordinary shares in issue during the year. 5. The adjustments to the net asset value per Mvela Group ordinary share and net tangible asset value per Mvela Group ordinary share represent the cash distribution and interest forfeited as explained in notes 1 and 2 above. 6. The net asset value per Mvela Group ordinary share and net tangible asset value per Mvela Group ordinary share are based on the fully diluted net number of Mvela Group ordinary shares in issue 3. Salient dates The salient dates for the implementation of the cash distribution remain as announced in Mvela Group"s reviewed results. The salient dates and times are subject to amendment. Any amendments to the salient dates and times will be announced on the Securities Exchange News Service and published in the South African press. 4. Circular and general meeting A circular has been posted to shareholders today, 9 October 2006, including a notice convening a general meeting of Mvela Group ordinary shareholders and Mvela Group preference shareholders, to be held at 11:00 on Tuesday, 24 October 2006 at the registered address of Mvela Group, Hunts End, 36 Wierda Road West, Wierda Valley, Sandton for the purpose of considering and, if deemed fit, passing, with or without modification, the ordinary resolutions necessary to approve and implement the cash distribution. Sandton 9 October 2006 Sponsor to Mvela Group Deutsche Securities (SA) (Prorietary) Limited Date: 09/10/2006 01:00:04 PM Supplied by www.sharenet.co.za Produced by the JSE SENS Department
