DISCOVERY HEALTH - RESULTS OF OFFER - PRESS RELEASE

OCTOBER 20, 1999

THE PUBLIC OFFER IN DISCOVERY HEALTH SHARES WAS 18 TIMES SUBSCRIBED AND THE
PREFERENTIAL OFFERS WERE FULLY TAKEN UP.

"WE ARE DELIGHTED WITH THE RESULTS OF THE OFFERS" SAID ADRIAN GORE, CHIEF
EXECUTIVE OF DISCOVERY HEALTH. "IN THE CURRENT VOLATILE MARKET, WE BELIEVE THAT
THIS SHOWS A VERY POSITIVE RESPONSE AND GREAT CONFIDENCE IN OUR COMPANY FROM
BOTH THE PUBLIC AND OUR MEDICAL PRACTITIONERS, BROKERS AND BUSINESS ASSOCIATES"
THE PUBLIC OFFER OF 3 600 000 SHARES WAS 18 TIMES SUBSCRIBED. APPLICATIONS WERE
RECEIVED FOR 65 186 570 SHARES, AND SHARES HAVE BEEN ALLOCATED AS PER THE
ATTACHED SCHEDULE.

THE PREFERENTIAL OFFER TO DISCOVERY EMPLOYEES WAS FULLY SUBSCRIBED AND THE
OFFER TO MEDICAL PRACTITIONERS, BROKERS AND BUSINESS ASSOCIATES WAS OVER
SUBSCRIBED. ALL APPLICATIONS FOR SHARES IN TERMS OF THE PREFERENTIAL OFFERS
HAVE BEEN ALLOCATED AS PER THE ATTACHED SCHEDULE.

A TOTAL OF 11 365 526 SHARES WERE OFFERED IN DISCOVERY AT R6.90 PER SHARE. THE
OFFER CLOSED ON FRIDAY OCTOBER 15, AT 2PM.

A LISTING OF 380 000 000 DISCOVERY SHARES HAS BEEN GRANTED IN THE INSURANCE -
"SHORT-TERM INSURANCE" SECTOR OF THE JSE LISTS UNDER THE ABBREVIATED NAME
"DISCOVERY" WITH EFFECT FROM THE START OF TRADING ON THURSDAY OCTOBER 21, 1999.
ENDS
ISSUED ON BEHALF OF:         BY:

DISCOVERY HEALTH             FASEDEMI NEWMAN LEO BURNETT
25 FREDMAN DRIVE             LEO BURNETT HOUSE
SANDTON                      3 SIMBA RD
                             SUNNINGHILL

CONTACT  :  MR ADRIAN GORE   CONTACT   :  MS JENNI NEWMAN

TEL      :  011 881 2854     TEL       :  011 235 4323

FAX      :  011 881 2065     FAX       :  011 235 4301

CELL     :  082 500 2800     CELL      :  082 882 8888
DATE : OCTOBER 20, 1999