MVG/MVGP - Mvelaphanda Group Limited - Proposed Acquisition by Avusa

MVG/MVGP - Mvelaphanda Group Limited - Proposed Acquisition by Avusa            
Mvelaphanda Group Limited                                                       
(Incorporated in the Republic of South Africa)                                  
(Registration number 1995/004153/06)                                            
Ordinary share code: MVG                                                        
Ordinary share ISIN: ZAE000060737                                               
Preference share code: MVGP                                                     
Preference share ISIN: ZAE000073540                                             
("the company" or "Mvela Group")                                                
PROPOSED ACQUISITION BY AVUSA                                                   
Over the past week, the company has undertaken consultation with selected       
shareholders of Avusa Limited ("Avusa") and shareholders of UHC Communications  
(Pty) Limited ("UHC") around the proposed acquisition of Universal Print Group  
and Hirt & Carter by Avusa (the "Transaction").                                 
Following recent further discussion and engagement with the shareholders and    
management of UHC, Mvela Group remains of the opinion that Avusa is entering    
into the Transaction at an inappropriate time in its business cycle. This, in   
effect, undervalues Avusa.  However following these recent discussions, we have 
been persuaded that the Transaction will most likely be value neutral to Avusa`s
shareholders should a number of contemplated initiatives be implemented.        
On Monday, 11 October 2010, Mvela Group representatives met with UHC            
shareholders where both parties concluded that they have a common vision and    
strategy for their interest in Avusa which includes Avusa being a platform for  
consolidation in the media environment.                                         
Mvela deems it vital that Avusa have a strong and united board in order to      
achieve its own stated objectives of being a leading media house in Africa.     
Following these discussions and in the interests of Avusa, Mvela Group has      
decided not to oppose the Transaction.  In the event that the majority of the   
shareholders of Avusa vote in favour of the Transaction, we will constructively 
engage with and support Avusa and UHC`s management in order to ensure that      
maximum value is extracted as a result of the Transaction.                      
Johannesburg                                                                    
12 October 2010                                                                 
Sponsor:                                                                        
Deutsche Securities (SA) (Proprietary) Limited                                  
Date: 12/10/2010 09:35:01 Supplied by www.sharenet.co.za                     
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