Discovery Holdings - PRESS RELEASE ON THE ORDER BY THE COURT TO PUBLISH THE

KPMG REPORT

Discovery is extremely pleased to announce that months of petitioning for
the release of the KPMG report on its investigation into Discovery Health
Medical Scheme have finally been rewarded.

In the Pretoria High Court today Justice Daniels ordered the release of the
report, simultaneously with a response from Discovery on the findings, as
well as the KPMG letter to the Council of Medical Schemes, dated 10 July
2001, recommending that the report should not be released without a comment
from Discovery.

Shaun Matisonn, principal officer of the scheme said that Discovery was
thrilled that all the documentation was now finally public knowledge.
"Today's order gives us the appropriate platform and opportunity to address
many of the misleading misperceptions about Discovery that have challenged
our reputation in the last year."

"The report quite clearly and unequivocally confirms the rationale and
legitimacy under the law for the use of reinsurance by the scheme, and
removes any continuing doubts about Discovery's continued commitment to
integrity and transparency"

Discovery's response, ordered by the judge to be released in conjunction
with the report, also proves that all other ancillary issues have been
appropriately resolved. This is evidenced by a variety of supporting
independent legal and accounting opinions.

The official release of the report alongside Discovery's own commentary
further clarifies the entire issue of the capitalisation of Discovery Health
Medical Scheme, which has maintained the highest possible credit rating of
any open medical scheme in the country for three years running. Today's
events clear the way forward for appropriate mechanisms to be instituted by
the scheme that will remove any lingering uncertainty that may currently
prevail in the market.

"The private healthcare sector in South Africa is a national asset, and
Discovery is very proud of the role it has played and will continue to play
in ensuring the best possible outcome for its 1-million members, other
industry players and for a robust and financial sound private healthcare
environment."

PLEASE SEE ATTACHED A COMPREHENSIVE FILE CONTAINING ALL THE RELEVANT

DOCUMENTATION ASSOCIATED WITH THE ORDER HANDED DOWN TODAY IN THE PRETORIA
HIGH COURT.

For further information, please contact Shaun Matisonn, Discovery Health
Medical Scheme on 082 606 2865