PSG GROUP/ PSG FINANCIAL SERVICES - PREFERENCE SHARE ISSUE

PSG GROUP/ PSG FINANCIAL SERVICES - PREFERENCE SHARE ISSUE                      
PSG Group Limited                                                               
(Incorporated in the Republic of South Africa)                                  
(Registration number 1970/008484/06    JSE Share code: PSG    ISIN code:        
ZAE000013017)                                                                   
("PSG Group")                                                                   
PSG Financial Services Limited                                                  
(Incorporated in the Republic of South Africa)                                  
(Registration number 1919/000478   JSE Share Code: PGFP                         
ISIN code: ZAE000060166)                                                        
("PSG Financial Services" or "the company")                                     
PREFERENCE SHARE ISSUE                                                          
1. PSG Group wishes to announce that following the reference in the commentary  
in its interim results published Thursday, 12 October 2004 to the possible      
raising of up to R150 million in preference share capital funding, it commenced 
with a private placement of 190 000 000 and offer for subscription of 10 000 000
cumulative, non-redeemable, non-participating preference shares with a par value
of R0,01 in PSG Financial Services, a wholly owned subsidiary of PSG Group.     
2. The private placement has elicited an extremely positive response from the   
selected financial institutions approached during the past two weeks" road show 
to potential investors. Expressions of interest have been obtained in excess of 
R200 million in respect of the private placement.                               
3. The offer for subscription is based on a minimum subscription amount of R100 
000 per single addressee acting as principal. The subscription price is R1 per  
preference share. The offer for subscription opens Thursday, 28 October 2004 and
closes Monday, 15 November 2004.                                                
4. The directors of PSG Financial Services have expressly reserved the right to 
close the offer for subscription at an earlier date should irrevocable          
undertakings for the full 200 000 000 preference shares be received from        
selected financial institutions in terms of the private placement. It is        
anticipated that such undertakings will indeed be received.                     
5. The JSE have formally approved the listing of 200 000 000 preference shares  
in the "Specialist Securities - "Preference Shares" sector under the above named
share code and ISIN number on Friday, 19 November 2004, subject to the condition
that the company meet the JSE"s requirements in respect of the requisite spread 
of preference shareholders.                                                     
6. An abridged pre-listing statement setting out the particulars of the private 
placement and offer for subscription will be made available tomorrow, Friday, 29
October 2004 on SENS and in the press on Monday, 1 November 2004.               
28 October 2004                                                                 
Stellenbosch                                                                    
Corporate Adviser and joint sponsor                                             
PSG Capital Limited                                                             
(Registration number 2002/017362/06)                                            
Lead sponsor                                                                    
PricewaterhouseCoopers Corporate Finance (Proprietary) Limited                  
(Registration number 1970/003711/07)                                            
Date: 28/10/2004 03:35:12 PM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department