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MASSMART HOLDINGS LIMITED - MASSMART SALES UP 15,6% FOR THE SIX MONTHS TO

Release Date: 08/01/2004 15:31
Code(s): MSM
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MASSMART HOLDINGS LIMITED - MASSMART SALES UP 15,6% FOR THE SIX MONTHS TO DECEMBER 2003 MASSMART HOLDINGS LIMITED (Incorporated in the Republic of South Africa) (Registration number 1940/014066/06) Share code MSM ISIN ZAE000029534 ("Massmart") MASSMART SALES UP 15,6% FOR THE SIX MONTHS TO DECEMBER 2003 Massmart today announced that total sales for the 26 weeks to 28 December 2003, including acquisitions, grew 15,6% to R12,2bn. Sales growth excluding acquisitions was 11,1% and comparable store sales grew 8,4%. Acquisitions, comprising Builders Warehouse, Tile Warehouse, and seven cash & carry outlets contributed sales of R483m. Commentating on the sales update, Mark Lamberti, Chief Executive and Deputy Chairman, said: "We are delighted with the real sales growth from comparable stores of over 8% off last year"s high base. This is the ultimate measure of retail sales performance and with Massmart"s selling price inflation of zero percent, the growth suggests that we have delivered exceptional value for our customers. We are also pleased that the total sales growth of 15,6% constitutes our 30th consecutive half year of record sales, sustaining our 10 year compounded growth rate of sales of over 20%." The inclusion of Builders Warehouse and Tile Warehouse combined with good growth from Makro, Furnex and Game South Africa, resulted in general merchandise sales growth double that of food - which experienced high inflation in the comparable period last year. Lamberti said that although consumers had been particularly responsive to substantially reduced prices on audio, video and computer equipment, aggressive marketing and merchandising across the Group had improved the average transaction per customer. Commenting on Massmart"s zero inflation on selling prices, Lamberti said: "Consumers and investors should recognise that the falling inflation and in some cases the deflation we have experienced in consumer goods is unprecedented in recent years. This is the first time in my 27 years in South African retailing that the average inflation across such a wide range of merchandise has approached zero, and our half year results will indicate that our management of prices, margins, inventory and working capital has been entirely appropriate in this environment." Massmart"s interim results to December 2003 will be released on 26 February 2004. Sandton 8 January 2004 For media enquiries: Rob Pinker Brunswick 011 268 5750 or 083 326 7794 Taryn Proksch Brunswick 011 268 5750 or 083 273 1301 Date: 08/01/2004 03:31:22 PM Supplied by www.sharenet.co.za Produced by the JSE SENS Department

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