FONEWORX HOLDINGS LIMITED - FONEWORX ADVANCES ON ITS NEW STRATEGIC DIRECTION AND PARTNERSHIP WITH THE KIRSH FAMILY

FONEWORX ADVANCES ON ITS NEW STRATEGIC DIRECTION AND PARTNERSHIP WITH THE KIRSH FAMILY

FoneWorx Holdings Limited
Incorporated in the Republic of South Africa
(Registration number 1997/010640/06)
Share code: FWX ISIN: ZAE000086237
(“FoneWorx” or “the Company”)

   FONEWORX ADVANCES ON ITS NEW STRATEGIC DIRECTION AND PARTNERSHIP WITH
                             THE KIRSH FAMILY


1 August 2012

Media Release

FoneWorx, a Telecoms and IT solutions provider, today announced that it has received a sufficient
number of irrevocable undertakings from the company’s shareholders to proceed with the proposed
purchase of the IDC’s stake and the subsequent sale of those shares to a consortium of the Kirsh
Family trusts.

The shares will be priced at 130.81 cents per share for both the purchase from the IDC and sale to
the Kirsh Family trusts.

FoneWorx has obtained written irrevocable undertakings from shareholders holding in aggregate 71
762 967 FoneWorx ordinary shares, being 52.8% of the issued shares in the Company. Given that the
IDC and the Kirsh Family Trusts are precluded from voting on the Transactions at the general
meeting, the irrevocable undertakings effectively comprise 78.5% of the issued shares in the
Company.

FoneWorx CEO, Mark Smith said: “Our shareholders have given us a very strong mandate to proceed
with the Kirsh Family and pursue further collaboration with them. We are pleased that we have been
able to replace IDC, who have been supportive shareholders, with Issie and William Kirsh who the
company can look to unlock further value in FoneWorx and pursue a new growth strategy.”

William Kirsh said: “My dad and I are delighted to become strategic shareholders in FoneWorx and
are very privileged that the CEO and directors chose us as their strategic partners. It is a company
that is exceptionally well managed and continues to innovate. The company has grown its turnover
and earnings over the last six years by 50% and 22% compound, respectively. It has a sound business
model which is highly cash generative with a very strong balance sheet of approximately R100
million in cash. We look forward to building shareholder value with the existing management and
directorate.”

The circular containing full details of the Transactions is expected to be distributed on or about 14
August 2012.

Shareholders are advised to exercise caution when dealing in the company's securities due to the
on-going negotiations between FoneWorx and the Kirsh family regarding the new envisioned
strategic direction for the company.

                                                -ends-
Issued by Brunswick:                             011 502 7300

Itumeleng Mahabane                               083 284 6774

Taryn Wulfsohn                                   083 273 1301

Notes to Editors

About FoneWorx

FoneWorx Holdings Limited is listed on AltX on the JSE and is the holding company for FoneWorx
(Pty) Limited ("FoneWorx") and other subsidiary companies, which are, in the main, Telecoms and IT
solutions providers.

FoneWorx is the largest independent proprietary switch which is connected to all the mobile
networks (MTN, Vodacom, Cell C and 8ta) and Telkom. The FoneWorx platform currently constitutes
1,200 channels of voice and data capability and operates as a bureau for the hosting of a broad
range of services including: IVR, SMS, USSD, fax, email and data storage, to mention a few.

FoneWorx has over 18 full-time programmers who have developed and maintain the proprietary
platform. We also provide our clients with a "turnkey solution" from scripting, studio recording,
programming, hosting, web statistics and post-campaign analysis.

FoneWorx has hosted many large promotions, competitions and voting services such as Idols (SA),
Idols (West Africa), Telkom Knockout, Big Brother Africa, Pep Club, African Cup of Nations, Strictly
Come Dancing and Ola Magnum.

In addition, FoneWorx has provided a plethora of infotainment services to over 200 agencies who
service in excess of 500 Fast Moving Consumer Goods ("FMCG") brands and business services to
over 150 corporates.

FoneWorx also has a number of operating divisions which include CarbonWorx (sustainability
services), IDWorx (Identity Access Management) and DRWorx (Disaster Recovery Services).

For more information: www.foneworx.co.za

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