NETWORK HEALTHCARE HOLDINGS LIMITED - NETCARE PREFERRED BIDDER FOR NHS CONTRACTS

NETWORK HEALTHCARE HOLDINGS LIMITED - NETCARE PREFERRED BIDDER FOR NHS CONTRACTS
WORTH R 1.4 BILLION                                                             
Network Healthcare Holdings Limited                                             
(Incorporated in the Republic of South Africa)                                  
Registration number 1996/008242/06                                              
JSE share code: NTC ISIN code: ZAE000011953("Netcare")                          
NETCARE PREFERRED BIDDER FOR NHS CONTRACTS WORTH R 1.4 BILLION                  
1    Introduction                                                               
Netcare has cautiously been pursuing its international expansion programme. It  
is currently completing the third successful Waiting List Initiative for the    
National Health Service ("NHS") in the United Kingdom ("UK") which, in          
aggregate, involved the treatment of approximately 2500 patients. As part of the
experience gained and as the next logical step, Netcare has, since December     
2002, been involved in the pre-qualification and bidding process against a      
multitude of international healthcare companies for the Independent Sector      
Treatment Centre ("TCs") programme offered by the NHS.                          
The TC programme was launched by the British Government as a means of addressing
clinical capacity shortfalls and gaps across a range of medical specialties     
relating to elective in-patient and day-case surgeries. At present, capacity    
gaps in the NHS have resulted in lengthy patient waiting lists, but via the     
establishment of the TCs, which are essentially new treatment centres designed  
to deliver high quality, cost-effective scheduled diagnostic and/or treatment   
services to NHS patients. The pressure on Waiting Lists is expected to be       
drastically reduced.                                                            
2    Details                                                                    
The British Secretary of State for Health, Dr John Reid, today announced that   
Netcare has been selected as the Likely Preferred Bidder for two new TCs. These 
include the Greater Manchester TC which aims to perform approximately 45 000    
surgical procedures (orthopaedic, general, and ear, nose and throat) at the     
Greater Manchester Surgical Centre (GMSC), and the Ophthalmology Chain (OC)     
which involves performing approximately 49 000 cataract procedures using a      
combination of mobile and fixed sites. Both contracts will be for a period of   
five years, will commence during the course of 2004, and are still subject to   
finalisation of all agreements.                                                 
The benefits of the TCs for both Netcare and South Africa are extensive. Netcare
is entering into fixed contracts with guaranteed patient volumes and numbers of 
elective procedures, which in turn, means that our investment is protected and  
the usual risks associated with managing such healthcare facilities are         
lessened. The total aggregate value of the contracts should generate revenue of 
approximately R1.4 billion in current terms.                                    
The TCs will also assist Netcare in fulfilling its strategic objective of       
retaining doctors and staff in its hospitals and within the South African       
healthcare system. Given Netcare"s established networks and experience gained   
through the group"s participation in the Waiting List Initiatives, Netcare      
believes it has developed and implemented an effective model for operating the  
TCs which will not have an impact on local operations nor denude healthcare     
resources in South Africa.                                                      
3    Future prospects                                                           
Netcare believes that the current experience gained through the Waiting List    
Initiatives and the TC programme will form the platform for a sustainable       
expansion into the United Kingdom and Europe.                                   
Further announcements regarding the status of these contracts will be published 
from time to time.                                                              
Sandton                                                                         
12 September 2003                                                               
Sponsor                                                                         
Merrill Lynch South Africa (Pty) Limited                                        
Date: 12/09/2003 01:30:33 PM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department