PSG BOOSTS PROFITS

THE PSG GROUP HAS POSTED EXCELLENT RESULTS FOR THE SIX MONTHS TO 31 AUGUST.
DESPITE VOLATILE FINANCIAL MARKETS AFTER-TAX INCOME JUMPED 132% TO R110,5M,
WHILE ATTRIBUTABLE PROFIT INCREASED 89% TO R76,4M.

HEADLINE EARNINGS INCREASED BY 35% TO 57,1C DESPITE AN ADDITIONAL 38,3 MILLION
SHARES ISSUED DUE TO NEW DEVELOPMENTS WITHIN THE GROUP.

PSG GROUP CHAIRMAN JANNIE MOUTON SAID TOTAL ASSETS OF THE PSG GROUP INCREASED
THREEFOLD FROM R1,5BN TO R4,5BN. THE NETT TANGIBLE ASSET VALUE PER SHARE
INCREASED BY 24% TO 799C.

DEVELOPMENTS DURING THE SIX MONTHS UNDER REVIEW INCLUDED THE TAKE-OVER BY PSG
INVESTMENT BANK HOLDINGS (PSG BANK) OF THE ASSETS OF PSG NOBLE CAPITAL (PSG
NOBLE). THIS ENLARGED OPERATION WAS LISTED ON THE JSE ON 2 AUGUST.

MOUTON SAID THE BANK WAS WELL CAPITALISED WITH PRIMARY CAPITAL OF MORE THAN
R1,4BN. ALL THE DIVISIONS OF THE BANK ALREADY CONTRIBUTED TO PROFITS DURING THE
PERIOD UNDER REVIEW AND THE GROUP WAS VERY POSITIVE ABOUT THE BANK'S FUTURE
PERFORMANCE.

REFERRING TO PSG INVESTMENT SERVICES, WHICH FOCUSES ON PRIVATE ASSET

MANAGEMENT, MOUTON SAID THIS DIVISION CONTINUED TO CREATE THE NECESSARY
INFRASTRUCTURE. IT NOW PROVIDES FOR THE ENTIRE SPECTRUM OF PRIVATE CLIENTS'
INVESTMENT NEEDS. IT WOULD FORM THE BASIS FOR FUTURE GROWTH, BOTH LOCALLY AND
OVERSEAS.

MOUTON SAID PSG CHANNEL GROUP EXCEEDED ALL EXPECTATIONS DURING THE SIX MONTHS.
ASSETS UNDER MANAGEMENT OR ENTRUSTED TO PSG ESCHER INVESTMENTS HAD RISEN TO
R11,2BN. AT THE SAME TIME A SPECIALIST LIFE INSURER, PSG LIFE, WAS FORMED ON 19
AUGUST.

KEYNES RATIONAL, IN WHICH THE INTERESTS OF PSG ANCHOR LIFE AND PSG SPECIALISED
LENDING HAVE BEEN COMBINED, WAS ALSO ESTABLISHED IN THE PERIOD UNDER REVIEW.
ALL THE COMPONENT PARTS PERFORMED TO BUDGET. REAL PROFIT GROWTH WAS

ANTICIPATED. MICHIEL LE ROUX JOINED THE GROUP AS EXECUTIVE CHAIRMAN OF KEYNES
RATIONAL.

"WE EXPECT GROUP RESULTS FOR THE REMAINING SIX MONTHS TO BE IN LINE WITH THOSE
ACHIEVED IN THE FIRST HALF. ALL DIVISIONS ARE EXPECTED TO CONTRIBUTE TO PROFITS
FOR THE YEAR AS A WHOLE," MOUTON SAID.

IT IS PSG'S STATED POLICY TO DISTRIBUTE ABOUT 30% OF ANNUAL PROFITS TO
SHAREHOLDERS. THE GROUP WILL CONSEQUENTLY MAKE AN INTERIM CAPITAL DISTRIBUTION
OF 12C PER SHARE TO SHAREHOLDERS REGISTERED ON NOVEMBER 5, 1999. THIS WILL BE
PAID OUT IN CASH ON NOVEMBER 15, 1999.
END

ISSUED BY                   DE KOCK & KERKHOFF COMMUNICATION CONSULTANTS
ON BEHALF OF                PSG GROUP

DATE                        MONDAY, OCTOBER 4, 1999

INQUIRIES                   GERHARD CLOETE, DEK&K  (021) 424-5280

                            JANNIE MOUTON (021) 887-9602