PSG GROUP INCREASES HEADLINE EARNINGS BY 101%

PRESS RELEASE

CAPE TOWN - PSG GROUP POSTED EXCELLENT RESULTS FROM ITS WIDESPREAD FINANCIAL
SERVICES INTERESTS FOR THE YEAR ENDED FEBRUARY 2000. HEADLINE EARNINGS GREW BY
101% TO R164,7M WITH A 40% INCREASE IN HEADLINE EARNINGS PER SHARE TO 120,6
CENTS.

TOTAL ASSETS, INCLUDING LIFE ASSURANCE FUNDS, GREW TO R14,2BN WITH THE NET
TANGIBLE ASSET VALUE AMOUNTING TO 778 CENTS PER SHARE (1999: 669 CENTS PER
SHARE).

WITH A CAPITAL DISTRIBUTION OF 12 CENTS AT THE INTERIM STAGE, A FURTHER
DISTRIBUTION OF 12 CENTS AND A FINAL DIVIDEND OF 12 CENTS WHICH WAS DECLARED AT
YEAR-END, THE TOTAL DISTRIBUTION TO SHAREHOLDERS WAS 36 CENTS PER SHARE. THIS
REPRESENTS AN INCREASE OF 44% ON THE PREVIOUS YEAR. PSG GROUP'S DECLARED POLICY
IS TO DISTRIBUTE APPROXIMATELY 30% OF ITS ANNUAL PROFITS TO SHAREHOLDERS.
RETURN ON EQUITY (ROE) INCREASED FROM 14% TO 19,1%.

EXECUTIVE CHAIRMAN JANNIE MOUTON SAID PSG INVESTMENT BANK CONTRIBUTED 76% OF
THE PSG GROUP'S PROFITS AFTER THE BANK POSTED A PROFIT AFTER TAX OF R211M FOR
THE YEAR.

"PSG INVESTMENT BANK IS WELL CAPITALISED AND HAS SUFFICIENT CAPITAL AVAILABLE
WHICH IS OF IMPORTANCE DURING A PERIOD OF INDIFFERENT CONFIDENCE IN THE BANKING
SECTOR, AS IN THE LAST QUARTER OF 1999."

HE SAID WITH THE STRONG CAPITAL POSITION OF THE BANK, AS WELL AS THE HIGHLY
COMPETENT AND QUALIFIED MANAGEMENT TEAM, "WE ARE CONFIDENT OF THE BANK'S FUTURE
PERFORMANCE AS IT IS NOW WELL PLACED TO PLAY ITS RIGHTFUL ROLE AS A SPECIALISED
INVESTMENT BANK."

ACCORDING TO MOUTON VELOCITY HOLDINGS WAS RE-ORGANISED TO GIVE MANAGEMENT A
DIRECT INTEREST OF 49% IN THE COMPANY. THE MANAGEMENT TEAM HAS MADE SUBSTANTIAL
PROGRESS AND ASSETS UNDER MANAGEMENT NOW AMOUNT TO ABOUT R1BN.

PSG INVESTMENT SERVICES (PSGIS) CONTINUED TO CONSOLIDATE ITS INTERESTS IN
STOCKBROKING, SECURITIES TRADING, UNIT TRUSTS, ASSET MANAGEMENT, PORTFOLIO
MANAGEMENT AND INDEPENDENT FINANCIAL CONSULTING. TOTAL FUNDS UNDER MANAGEMENT
EXCEEDED R5BN FOR THE FIRST TIME.

PSG ONLINE, THE INTERNET STOCKBROKER, TRADED SUCCESSFULLY AND HAS STARTED
CONTRIBUTING TO PROFITS. PSG ONLINE HAS BEEN MERGED WITH THE STOCKBROKER PSG
SECURITIES TO ESTABLISH A VIABLE PLATFORM FOR E-COMMERCE WITHIN PSGIS. THE
OBJECTIVE IS TO ENHANCE THE DISTRIBUTION OF ALL THE FINANCIAL PRODUCTS THROUGH
THIS E-ABLING PLATFORM AIMED AT THE TARGET MARKET OF PSGIS. PSGIS'S

DISTRIBUTION NETWORK CONSISTS OF PSG ONLINE, PSG INDEPENDENT CONSULTING AND PSG
KONSULT, THE LATTER HAVING 55 OFFICES NATIONWIDE.

HE SAID PSG UNIT TRUSTS, CONSISTING OF 6 LOCAL AND 2 INTERNATIONAL FUNDS,
EXPERIENCED FURTHER GROWTH, WITH FUNDS UNDER MANAGEMENT TOTALLING R700M AT
YEAR-END.

PSG CHANNEL HOLDINGS TRADED WELL AHEAD OF BUDGET IN TERMS OF BOTH GROWTH AND
PROFITABILITY AND HAS ESTABLISHED ITSELF AS A SIGNIFICANT PLAYER IN THE
EMPLOYEE BENEFITS FIELD.

MOUTON SAID PSG ESCHER INVESTMENTS WAS THE STAR PERFORMER IN THE GROUP AND HAS
INCREASED ITS ASSETS UNDER MANAGEMENT OR THOSE COMMITTED TO IT, TO R12BN. THE
COMPANY IS CURRENTLY PREPARING FOR A LISTING ON THE JSE.

THE COMPANY HAS ESTABLISHED ITSELF IN THE UK WITH THE ACQUISITION OF SUPERFLEX
FROM WILLIAM M MERCER AND TRADES AS ESCHER (UK) ASSET MANAGERS. IT WILL OPERATE
FROM LONDON IN ASSOCIATION WITH INTERNATIONAL CONSULTANTS WILLIAM M MERCER AND
THE WINTERTHUR LIFE COMPANY, A SUBSIDIARY OF CREDIT SUISSE, MOUTON SAID.
PSG LIFE, WHICH WAS INCORPORATED IN AUGUST 1999 AS AN INVESTMENT UNDERWRITER,
NOW FORMS PART OF PSG ESCHER. THE ASSURER HAS BEEN PROFITABLE
SINCE INCEPTION.

MOUTON SAID KEYNES RATIONAL, WHICH PROVIDES FINANCIAL SERVICES SUCH AS LIFE
ASSURANCE AND MICROBANKING TO THE UNDERSERVICED SECTORS OF THE ECONOMY, IS WELL
POSITIONED FOR GROWTH AND EXPANSION DESPITE CURRENT UNCERTAINTY IN GOVERNMENT
CIRCLES ABOUT THE FUTURE OF THE INDUSTRY.

HE SAID IN ORDER TO BECOME A PROPER FINANCIAL SERVICES GROUP, KEYNES RATIONAL
HAS DECIDED TO ACQUIRE A BANKING LICENCE AND HAS ENTERED INTO NEGOTIATIONS WITH
PSG INVESTMENT BANK REGARDING THE LICENCE OF THE BUSINESS BANK.

"A SIGNIFICANT PROFIT CONTRIBUTION IS EXPECTED FROM KEYNES RATIONAL IN FUTURE,"
MOUTON SAID.

MOUTON SAID THE PSG GROUP'S BALANCE SHEET REMAINS STRONG, IS WELL CAPITALISED
AND STILL FORMS THE BASIS FOR FURTHER GROWTH AND EXPANSION.

HE SAID THE PSG GROUP HAD SET GOALS TO BE ACHIEVED BY THE FINANCIAL YEAR ENDING
2002 OF 200 CENTS EARNINGS PER SHARE, 30% OF EARNINGS FROM OFFSHORE AND ROE OF
AT LEAST 20%.

"WE ALSO AIM TO BED-DOWN ALL EXISTING OPERATIONS, TO MAXIMISE BOTH EFFICIENCIES
AND PROFITABILITY AND TO ENSURE THAT THE MAXIMUM SYNERGISTIC AND ORGANIC GROWTH
IS ACHIEVED.

"WE AIM FOR 25% GROWTH PER ANNUM IN PROFITS AND AT LEAST A 25% RETURN ON FUNDS
INVESTED. PSG GROUP HAS BEEN ABLE TO MEASURE UP TO THESE BENCHMARKS OVER THE
PAST FOUR YEARS AND WE REMAIN CONFIDENT OF OUR ABILITY TO CONTINUE TO DO SO IN
FUTURE," HE SAID.

ALL DIVISIONS ARE BUDGETING FOR INCREASES IN PROFIT AND BARRING UNFORESEEN
CIRCUMSTANCES PSG GROUP SHOULD AGAIN EXPERIENCE ACCEPTABLE GROWTH FOR THE
CURRENT FINANCIAL YEAR.
ENDS

ISSUED BY INVESTOR CONNEXION ON BEHALF OF PSG GROUP
ENQUIRIES
JANNIE MOUTON                   GERHARD CLOETE
EXECUTIVE CHAIRMAN              INVESTOR CONNEXION
PSG GROUP                       TEL (021) 797 3702
TEL (021) 887 9602              FAX (021) 761 7702
FAX (021) 887 9619              CELL 083 300 6850
E-MAIL: GERHARD@BJFCB.CO.ZA
WEBSITE: HTTP://WWW.PSG.CO.ZA
DATE: APRIL 10, 2000
GERHARD CLOETE
INVESTOR CONNEXION
FINANCIAL PUBLIC RELATIONS CONSULTANCY
WYNBERG, CAPE TOWN RSA
CELL: 083-300-6850
TEL: +27 21 797 3702
FAX: +27 21 7617702
E-MAIL: GERHARD@BJFCB.CO.ZA