DISCOVERY HOLDINGS LIMITED - CAUTIONARY ANNOUNCEMENT

DISCOVERY HOLDINGS LIMITED - CAUTIONARY ANNOUNCEMENT                            
Discovery Holdings Limited                                                      
(Incorporated in the Republic of South Africa)                                  
(Registration number  1999/007789/06)                                           
Share code:  DSY                                                                
ISIN:  ZAE000022331                                                             
("Discovery" or "the company")                                                  
Cautionary announcement                                                         
Shareholders are advised that Discovery has entered into negotiations with a    
third party, which, if successfully concluded, may have an effect on the price  
of the company`s shares.  Accordingly, shareholders are advised to exercise     
caution when dealing in their shares until a further announcement is made.      
Sandton                                                                         
17 December 2002                                                                
Merchant bank and sponsor                                                       
Rand Merchant Bank                                                              
A division of FristRand Bank Limited                                            
Corporate Finance                                                               
Date: 17/12/2002 07:00:19 AM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department