PSG Group Limited - Repurchase Of Ordinary Shares In Psg Group Limited

PSG GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration Number 1970/008484/06)
("PSG Group")
Share Code: PSG
ISIN Code:  ZAE 000013017

REPURCHASE OF ORDINARY SHARES IN PSG GROUP LIMITED
INTRODUCTION

PSG Group herewith announces the repurchase of 3 686 000 (approximately 3%
of the issued ordinary shares) of PSG Group's own shares on the open market
on the JSE Securities Exchange South Africa ("the JSE"), in accordance with
the general authority granted to the directors by PSG Group shareholders at
the annual general meeting held on 25 May 2001 ("the repurchase").
2. AUTHORISED REPURCHASE LIMITS
In terms of the special resolution:

the general authority is limited to a maximum of 20% of PSG Group's issued
share capital per financial year; and

any repurchase may not be made at a price more than 10% above the weighted
average of the market value of the securities for the five business days
immediately preceding the date of such repurchase.

A maximum of 25 380 000 ordinary shares could be repurchased in terms of the
general authority obtained from shareholders.
3. IMPLEMENTATION
     Total number of shares          3 686 000
     purchased
     Total value of shares           R24 947 216
     purchased
     Highest price paid per share    710 cents
     Lowest price paid per share     600 cents
     Average price paid per share    677 cents
     including costs
     The number of shares which may  21 694 000
     still be repurchased by the
     company in terms of the
     general authority
     Ordinary share capital in       126 900 000
     issue on 1 March 2001
     Ordinary share capital in       123 214 000
     issue at date of this
     announcement

The programme commenced on 4 May 2001 and continued on a day-to-day basis as
market conditions allowed except for the "closed period" before the

publication of the results for the half year ended 31 August 2001.
SOURCE OF FUNDS

Repurchases to date have been, and future repurchases will also be, funded
from available funds.
OPINION OF THE DIRECTORS

The directors of PSG Group have considered the impact of the share
repurchase and are of the opinion that:

PSG Group will be able, in the ordinary course of business, to pay its debts
for a period of 12 months from the date of this announcement.

The consolidated assets of PSG Group and its subsidiaries are in excess of
the consolidated liabilities, measured in accordance with the accounting
policies used in the unaudited interim financial statements for the period
ended 31 August 2001.

The ordinary share capital and consolidated reserves of PSG Group and its
subsidiaries will be adequate for a period of 12 months from the date of
this announcement.

The working capital of PSG Group and its subsidiaries will be adequate for a
period of 12 months from the date of this announcement.
FINANCIAL EFFECTS

The effect on earnings and net asset value per ordinary share before and
after the repurchase of 3% of the issued ordinary share capital, is as
follows:

                             Before     After     %

                             (cents)    (cents)   Change

     Earnings per share      94,6       95,7      1,2

     Headline earnings per   27,7       27,8      0,4
     share

     Net asset value per     933        937       0,4
     share

     Tangible net asset      802        803       0,1
     value per share
     Assumptions:

The pro forma financial effects are calculated as at 31 August 2001 on PSG
Group's unaudited financial results for the half year ended 31 August 2001
and assuming that the repurchases to date had been carried out on 1 March
2001.
JSE LISTING

3 686 000 shares have been cancelled to date and the JSE listing in respect
of those shares have or will be terminated as soon as possible.
Cape Town
12 December 2001
Sponsor
PSG Investment Bank Limited