Mvela Group - Acquisition

     Mvela Group - Acquisition                                                  
     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")                                           
     Acquisition of a further 5.61% effective economic interest in Life         
     Healthcare Group Holdings (Proprietary) Limited ("Life Healthcare")        
Mvela Group is pleased to announce that it has, in conjunction with certain
     of the existing shareholders in Life Healthcare, namely Brimstone          
     Investment Corporation Limited, Old Mutual Life Assurance Company (South   
     Africa) Limited, various entities in the First Rand Group, and certain of  
the senior management of Life Healthcare (collectively "the Life           
     shareholders"), concluded a written agreement dated 6 September 2006 ("the 
     sale agreement") with African Oxygen Limited ("Afrox") in terms of which   
     the Life shareholders have, pursuant to the exercise of an existing option,
acquired the 21.39% effective economic interest ("the sale interest") in   
     Life Healthcare owned by Afrox. The purchase price payable by the Life     
     Shareholders for the sale interest is R850 million.                        
     Pursuant to the sale agreement, Mvela Group will acquire an additional     
5.61% effective economic interest in Life Healthcare for a purchase price  
     of R223 million ("the Life Healthcare acquisition"). The purchase price of 
     R223 million is payable in cash on 29 September 2006 and will be funded    
     from Mvela Group"s existing cash resources. Depending on the outcome of    
certain other transactions which Life Healthcare is currently considering, 
     the 5.61% effective economic interest to be acquired by Mvela Group may be 
     reduced to an effective economic interest of 4.43%, with a corresponding   
     reduction in the purchase price payable by Mvela Group.                    
Mvela Group currently holds an 18.1% effective economic interest           
     (equivalent to a 20.3% effective voting interest) in Life Healthcare, which
     effective economic interest will increase to 23.7% following the Life      
     Healthcare acquisition. Mvela Group regards Life Healthcare as a strategic 
investment with substantial growth potential. The Life Healthcare          
     acquisition is a unique opportunity for Mvela Group to exercise its        
     existing rights to increase its effective interest in Life Healthcare at an
     attractive  discount of 37% to the Mvela Group directors" current          
valuation of the sale interests (calculated with reference to Mvela Group"s
     valuation of its 18.1% effective economic interest in Life Healthcare, as  
     disclosed in Mvela Group"s reviewed results for the year ended 30 June 2006
     which were released on SENS on 5 September 2006 ("the June 2006 results")).
Had the Life Healthcare acquisition been concluded on 30 June 2006, this   
     would have resulted in an increase in Mvela Group"s intrinsic net asset    
     value per ordinary share at 30 June 2006 from R11.77 to R12.00, and an     
     increase in Mvela Group"s intrinsic net asset value per ordinary share at 1
September 2006 (as disclosed in the June 2006 results) from R12.05 to      
     R12.28.                                                                    
     Sandton                                                                    
     7 September 2006                                                           
Sponsor                                                                    
     Deutsche Securities SA (Proprietary) Limited                               
     Attorneys                                                                  
     Bowman Gilfillan Inc.                                                      
Date: 07/09/2006 12:57:05 PM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department