PSG Group Limited - Repurchase Of Ordinary Shares IN PSG Group Limited

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                                              
Share code: PSG      ISIN: ZAE000013017                                         
Repurchase of ordinary shares in PSG Group Limited ("PSG")                      
1.   Introduction                                                               
In terms of a general authority granted to PSG to repurchase its ordinary       
shares, in terms of a special resolution passed by PSG shareholders on 31 May   
2002 ("the general authority"), a maximum of 24 000 000 ordinary shares (being  
20% of the issued share capital) could be acquired.                             
2.   Implementation                                                             
As at the close of business on 30 May 2003, PSG had acquired, in the open       
market, a total of 4 036 431 ordinary shares, equivalent to 3.36% of the issued 
share capital then in issue, for a total consideration of R14 216 931. The      
repurchase was carried out on 30 May 2003. The highest price paid was R3.50 per 
share and the lowest price paid was R3.39 per share, and the average price      
R3.49.  The extent of the authority outstanding is 19 963 569 ordinary shares   
equivalent to 16.63% of the total issued share capital.                         
3.   Source of funds                                                            
Repurchases to date have been funded from available cash resources and it is    
intended that all future purchases will also be funded from available cash      
resources.                                                                      
4.   Opinion of the directors                                                   
     The directors of PSG have considered the impact of the share repurchase and
are  of the opinion that:                                                       
4.1       PSG and the 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.                                                                   
4.2  The assets of PSG and the PSG group are in excess of the liabilities,      
measured in    accordance with the accounting policies used in the audited      
financial statements for the  year ended 28 February 2003.                      
4.3  The ordinary share capital and consolidated reserves of PSG and the PSG    
group will be adequate for a period of 12 months from the date of this          
announcement.                                                                   
4.4  The working capital of PSG and the PSG group will be adequate for a period 
of                                                                              
     12 months from the date of this announcement.                              
5.   Effect on Earnings and Net Asset Value                                     
Before    After     Change         

                                             (cents)   (cents)   %              
     Earnings per share                      (154.9)   (161.5)   4.3            
     Headline earnings per share             70.7      71.9      1.7            
Net asset value per share               828       843       1.8            
     Net tangible asset value per share      773       786       1.7            
6.   Assumptions                                                                
The pro forma financial effects ("after") are calculated on PSG is audited      
results for the year ended 28 February 2003, assuming:                          
The accounting policies employed by PSG for the year ended 28 February 2003 have
     been applied in making these calculations.                                 
For the purposes of calculating the earnings and headline earnings related      
figures, it was assumed that the repurchase was carried out on or before 1 March
2002 and that PSG earned a 9.8% after tax return on its cash.                   
     All the calculations have been based on a weighted average number of shares
in issue  of 120 000 000, before the repurchases.                               
For the purposes of calculating the net asset and net tangible asset value,
it was    assumed that the repurchases were carried out on 28 February 2003,    
using the      number of shares in issue at that date of 115 963 569 (after the 
repurchase).                                                                    
7.   JSE Securities Exchange South Africa ("JSE") Listing                       
All the shares have been repurchased by PSG and application will be made for the
cancellation of the shares acquired.  Application will also be made for the     
listing of these shares to be cancelled.                                        
Stellenbosch                                                                    
2 June 2003                                                                     
Date: 02/06/2003 04:16:09 PM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department