PSG GROUP - CAUTIONARY ANNOUNCEMENT

PSG GROUP - CAUTIONARY ANNOUNCEMENT                                             
PSG Group Limited                                                               
(Incorporated in the Republic of South Africa)                                  
(Registration number 1970/008484/06)                                            
Share code : PSG   ISIN : ZAE000013017                                          
("PSG Group" or ("the company")                                                 
CAUTIONARY ANNOUNCEMENT                                                         
PSG Capital is authorised to announce that Channel Life Namibia Limited         
("Channel Namibia") and Metropolitan Life Namibia Limited ("Metropolitan") have 
entered into formal negotiations which, if successful, may result in            
Metropolitan acquiring an interest in Channel Namibia.                          
Channel Namibia is a wholly-owned subsidiary of Channel Life Limited, a company 
42% held directly by PSG Group Limited ("PSG Group") and 38% indirectly together
with black controlled Arch Equity Proprietary Limited.                          
Both Metropolitan and Channel Namibia are highly successful companies in their  
own right, with specific areas of experience in the Namibian life assurance     
market.  Their respective businesses have a natural fit and by joining forces,  
these strengths will be further enhanced, making the combined entity the player 
with the largest estimated new business market share in Namibia.                
The strong management teams that have led Metropolitan and Channel Namibia to   
date will continue to play a key role in bedding down the envisaged alliance,   
capitalising on the core competencies of both parties and thereby accelerating  
the growth potential of the joint venture.                                      
The proposed transaction may have a material effect on the price of PSG Group   
shares.  Accordingly, shareholders are advised to exercise caution when dealing 
in the company"s shares until a full announcement is made.                      
Stellenbosch                                                                    
27 September 2004                                                               
Corporate adviser to Channel and joint sponsor to PSG Group.                    
PSG Capital                                                                     
(Registration number 2002/017396/06)                                            
Lead Sponsor                                                                    
PricewaterhouseCoopers Corporate Finance Pty (Ltd)                              
(Registration number 1970/003711/07)                                            
Date: 27/09/2004 02:11:48 PM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department