MEDIA RELEASE

20 OCTOBER 1999
IST RELEASES FIRST HALF RESULTS
- EARNINGS DECLINE BY 13%
- REVENUE INCREASED BY 50%
- CASH AND CASH EQUIVALENTS OF R23,3 MILLION
- UNGEARED

TECHNOLOGY GROUP IST HOLDINGS RELEASED RESULTS FOR THE FIRST HALF INDICATING A
DECLINE IN HEADLINE EARNINGS OF 18% RELATIVE TO THE SAME PERIOD, AS A RESULT OF
DISAPPOINTING PERFORMANCES FROM IST INTERNATIONAL AND LONGER THAN ANTICIPATED
DELAYS IN TELKOM ORDERS FOR IST TELECOM.   ALL OTHER OPERATING COMPANIES HAVE
EXCEEDED EXPECTATIONS FOR THE HALF YEAR, RESULTING IN A COMPARATIVE 50%
INCREASE IN REVENUE.

SAYS CEO TOM CAROLIN:  "WE HAVE BEEN SATISFIED WITH THE PERFORMANCES OF FOUR OF
OUR FIVE LOCAL OPERATING COMPANIES.  HOWEVER, WE HAVE BEEN DISAPPOINTED BY THE
PERFORMANCE OF IST TELECOMS WHICH HAS BEEN LARGELY DUE TO THE DELAY IN THE
AWARDING OF LOCAL TELECOMS CONTRACTS.  WE BELIEVE THAT THE STABILITY OF THIS
BUSINESS WILL BE RESTORED AS WE EXPAND BOTH THE PRODUCT AND THE CUSTOMER BASE.
"ONCE AGAIN, WE HAVE ENDED THE PERIOD WITH A HEALTHY BALANCE SHEET SHOWING
SIGNIFICANT CASH ON HAND TO FUND OUR GROWTH STRATEGY, AND WE REMAIN VIRTUALLY
UNGEARED."

IST ENERGY HAS EXPERIENCED A SIGNIFICANT INCREASE IN DOMESTIC MARKET SHARE, AND
HAS DIVERSIFIED THE SOUTHERN AFRICAN CUSTOMER BASE.  IST DYNAMICS, SUPPLIERS OF
TECHNOLOGY PRODUCTS TO THE DEFENCE INDUSTRY, HAVE ALREADY EXCEEDED TOTAL
EARNINGS FOR THE 1998 FINANCIAL YEAR AS A RESULT OF NEW INTERNATIONAL

CONTRACTS.  IST INDUSTRIAL, PROVIDERS OF AUTOMATION AND CONTROL SOLUTIONS TO
INDUSTRIAL PLANTS, HAS REPORTED SOLID PROGRESS AND IT IS EXPECTED THAT THE
COMPANY WILL REPORT SATISFACTORY GROWTH AT YEAR END.  THEN NEW DIVISION, IST
DATA, HAS ALREADY REPORTED A SMALL PROFIT AND IS SET TO BECOME A SIGNIFICANT
CONTRIBUTOR TO FUTURE GROUP EARNINGS.

IST INTERNATIONAL WAS RECENTLY ESTABLISHED TO GROW THE EXPORT BASE, AND SINCE
ITS INCEPTION, HAS ACQUIRED TWO COMPANIES IN NORTH AMERICA AND CANADA.  THE
OPERATION HAS REPORTED A LOSS FOR THE PERIOD, LARGELY AS A RESULT OF

DEVELOPMENT AND SET UP COSTS, AND DUE TO AN OPERATING LOSS REPORTED BY CANADIAN
SUBSIDIARY TES.  SAYS CEO IST INTERNATIONAL DERRICK DU TOIT:  "WE ARE CLEARLY
DISAPPOINTED WITH THIS PERFORMANCE, BUT ARE CONFIDENT THAT WE WILL REPORT
IMPROVED RESULTS DURING THE NEXT FINANCIAL YEAR AS WE BEGIN TO REALISE THE
BENEFITS OF THE SET UP COSTS AND OUR INVESTMENTS IN THIS AREA."

LOOKING FORWARD, THE GROUP IS CONFIDENT THAT IT WILL CONTINUE TO DELIVER ON THE
SIGNIFICANT GROWTH IT HAS SHOWN OVER THE PAST 19 YEARS.  "SHORT TERM NEGATIVE
GROWTH AS WE ARE EXPERIENCING NOW IS NOT UNPRECEDENTED IN OUR HISTORY, AND WE
BELIEVE IT IS SOMETIMES UNAVOIDABLE WHEN STRIVING FOR LONG TERM GROWTH
OBJECTIVES," SAID CAROLIN.

ISSUED BY BRUNSWICK SOUTH AFRICA - KIMON PHITIDIS 011 442 8803 / 082 882 4333
ON BEHALF OF IST HOLDINGS - TOM CAROLIN  012 348 8705 / 083 258 8228