PSG GROUP LIMITED - DECLARATION OF SPECIAL DIVIDEND AND ANNOUNCEMENT TO

PSG GROUP LIMITED - DECLARATION OF SPECIAL DIVIDEND AND ANNOUNCEMENT TO         
                    SHAREHOLDERS                                                
PSG GROUP LIMITED                                                               
(Registration number 1970/008484/06)                                            
Share Code: PSG                                                                 
ISIN: ZAE000013017                                                              
("PSG Group" or "the Company")                                                  
DECLARATION OF SPECIAL DIVIDEND AND ANNOUNCEMENT TO SHAREHOLDERS                
1.   Special dividend                                                           
Further to the interim results announcement dated 6 October 2003, notice is     
hereby given that the board of directors of the Company resolved on 4 February  
2004, to declare a special dividend of 100 cents per share, payable to PSG Group
shareholders reflected in the share register of the Company at the close of     
business on Friday, 30 April 2004, the record date. The dividend will be paid on
Monday, 3 May 2004. The last day to trade "cum" dividend is Thursday, 22 April  
2004. Shares will trade "ex" dividend from the commencement of business on      
Friday 23 April 2004.                                                           
Share certificates may not be dematerialised or rematerialised from Friday, 23  
April 2004 to Friday, 30 April 2004, both dates inclusive. The dividend, which  
will amount to approximately R115 million in total, will be paid out of the     
retained earnings of the Company, and will be funded from the internal cash     
resources of the Company.                                                       
This distribution together with the special distribution of 200 cents per share 
in 2003 and the unbundling of Capitec Bank Holdings now concludes PSG Group"s   
project unlock value.  In future the board of PSG Group will concentrate on     
project future growth.                                                          
2.   Black Economic Empowerment transaction for Channel Life                    
PSG Group has in previous announcements indicated that discussion to facilitate 
black economic empowerment at its 89% held subsidiary Channel Life Limited      
("Channel Life") was at an advanced stage.  The directors of PSG Group are      
pleased to announce that an agreement has been finalised between Channel Life   
shareholders and an empowerment consortium led by Mr Desmond Lockey ("Mr        
Lockey") to acquire a significant holding in Channel Life.  The only outstanding
condition precedent to this transaction is approval from the Competition        
Commission.                                                                     
Mr Lockey will join the board and play an active part in the future operations  
of Channel Life. The directors of PSG Group are of the opinion that Mr Lockey   
can make a significant contribution to the future success of Channel Life.      
Stellenbosch                                                                    
5 February 2004                                                                 
Sponsor                                                                         
PSG Capital                                                                     
Date: 04/02/2004 05:16:03 PM Supplied by www.sharenet.co.za                     
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