NETWORK HEALTHCARE HOLDINGS LIMITED - TRADING STATEMENT

NETWORK HEALTHCARE HOLDINGS LIMITED - TRADING STATEMENT                         
NETWORK HEALTHCARE HOLDINGS LIMITED                                             
(Registration number 1996/008242/06)                                            
Code: NTC                                                                       
ISIN number: ZAE000011953                                                       
("Netcare" or "the Group")                                                      
TRADING STATEMENT                                                               
Shareholders are advised that even though the circumstances giving rise to this 
announcement do not warrant the publication of a trading statement in terms of  
the JSE Securities Exchange SA Listings Requirements, it has been deemed        
appropriate to provide the shareholders with the following information in       
anticipation of the release of the Netcare results for the year ending 30       
September 2004.                                                                 
Following a preliminary analysis of the Group"s performance for the year ended  
30 September 2004, shareholders are advised that notwithstanding satisfactory   
growth and activity in the Netcare Group"s core hospital and ancillary          
healthcare divisions, the results will be impacted by period-specific non       
recurring items and prior year adjustments, which are detailed below:           
Non recurring items                                                             
As recorded in the interim results for the six months ended 31 March 2004 and   
  subsequent presentations,                                                     
     *    Netcare 911 experienced a once off charge of R26.9 million due to     
          restructuring costs, cancellation of forex linked contracts and the   
discontinuation of loss making business units and products; and       
     *    The issue of 100 million Netcare shares to, and subsequent            
          reinvestment in, Netpartner Investments Limited on 30 September 2003  
          has had the predictable short-term dilutionary effect on headline     
earnings per share of approximately 3% for the period;                
Due to the volatility experienced in the politically sensitive Middle East, a   
  strategic decision was made to discontinue all operations in that region. The 
  Group has written off an amount of R22.7 million relating to associated costs 
in this accounting period.                                                    
Since the introduction of the regulations applicable to single exit pricing on  
  pharmaceuticals which were implemented on 1 May, the Group has been impacted  
  negatively by a higher cost of drug purchases for the 4.5 months preceding    
successful renegotiation of tariffs with the funders.                         
Prior year adjustments                                                          
In terms of AC 133 (Financial Instruments - Recognition and Measurement) and AC 
103 (Accounting Policies, Changes in accounting estimates and errors), prior    
year adjustments have been made for:                                            
  *    Financial Assets relating to the Netcare Trust                           
  *    Supplier rebates                                                         
Despite the aggregate effect of the prior year adjustments and non recurring    
items, the Group is nevertheless expected to record a positive growth in        
headline earnings per share for the year of approximately 5% to 15%.            
The financial information upon which this trading statement is based is in the  
process of being reviewed and reported on by the company"s auditors.            
Shareholders are advised that the results for the year ended 30 September 2004  
are expected to be released on SENS on Wednesday, 17 November 2004.             
Sandton                                                                         
12 November 2004                                                                
Sponsor                                                                         
Merrill Lynch South Africa (Pty) Limited                                        
Date: 12/11/2004 08:00:04 AM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department