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Netcare And Harmony Sign Healthcare Deal Harmony Gold Mining Company Ltd. (Co. Reg. No. 1950/038232/06) ISIN No.: ZAE000015228 JSE Code: HAR Network Healthcare Holdings Ltd (Co. Reg. No. 1996/008242/06) ISIN No.: ZAE000011953 JSE Code: NTC NETCARE AND HARMONY SIGN HEALTHCARE DEAL Introduction Harmony Gold Mining Company Limited ("Harmony") and Network Healthcare Holdings Limited ("Netcare"), have jointly formed a new company (referred to herein as "Health-Manco") to manage the provision of healthcare services of the Harmony Group. The agreement between Harmony and Netcare forms the first part of a transaction that will eventually see the complete outsourcing of the management of Harmony"s healthcare services to Health-Manco. Health-Manco will oversee the provision of the entire range of healthcare services to Harmony employees including, inter alia, occupational health, primary care, hospital management, pharmacy procurement and emergency healthcare services. Health-Manco intends to use the next six months as a consolidation period in which it will familiarise itself with Harmony"s needs, identify areas of opportunity and implement systems. The intention is to pilot various healthcare models to focus on cost-effective and quality healthcare delivery that is comprehensively measured by clinical outcomes. These risk models will ultimately result in providing quality healthcare services to Harmony employees at an agreed upon rate. The parties have already had positive initial discussions with other mining Groups for the consolidation of healthcare services within the entire mining sector. The success of this initiative is also expected to be enhanced by the inclusion of localised industry in making use of this network of mining hospitals, together with Netcare"s infrastructure. Rationale The transaction will bring a wide range of benefits to Harmony, including the centralisation of Harmony"s healthcare services. This process makes the provision of these healthcare services easier to manage resulting in a more efficient and cost-effective delivery of services. Harmony will thereby be positioned to offer all its employees more comprehensive healthcare benefits. Netcare, with its integrated healthcare delivery model and full range of services, is ideally placed to jointly manage the healthcare needs of various partners, using a range of healthcare models that are able to suit each company"s needs. With the advent of Netpartner in 2003, the eventual facilitation of a comprehensive network of healthcare service providers would also be utilised to assist in providing meaningful, quality healthcare delivery solutions for both mine employees and their dependants. The combined participation by Harmony and Netcare is expected to yield significant benefits through, inter alia, the following factors: 1 Operational efficiencies using; (i) Consolidation and rationalisation (ii) Standardisation and economies of scale (iii) The adoption of benchmarking and best practice principles 2. Pooled management and specialised healthcare expertise; 3. The comprehensive range of services on a national basis; 4. Improved utilisation of Harmony"s hospital assets using Netcare"s brand and image; 5. Innovation through accessible, affordable new healthcare product options; 6. To offer the currently uninsured employees of the industry and their dependents access to quality healthcare; 7. Improved quality of care through staff motivation, training, exchange programmes and retention; 8. Improved social responsibility to communities. Financial effects The financial effects of this transaction to both Harmony and Netcare are, at this stage, not expected to be significant in the immediate future. However, the successful achievement of the objectives, which includes the potential rollout of the strategy to the broader mining industry, is expected to yield meaningful returns to all current and future stakeholders. Sandton 28 April 2004 Merchant Bank to Harmony Rand Merchant Bank Corporate Finance (A division of FirstRand Bank Limited) Harmony Sponsor Netcare Sponsor JP Morgan Equities Limited Merrill Lynch South Africa (Pty) Limited For further information contact: Netcare Dr J shevel Telephone 0113010202 Harmony B Swanepoel Telephone 011 6840140 or F Dippenaar Telephone 011 6840140 Date: 28/04/2004 12:26:41 PM Supplied by www.sharenet.co.za Produced by the JSE SENS Department
