Massmart Holdings Limited - Massmart Acquires Servistar

Massmart Holdings Limited - Massmart Acquires Servistar                         
MASSMART HOLDINGS LIMITED                                                       
(Incorporated in the Republic of South Africa)                                  
(Registration Number: 1940/014066/05)                                           
Share code: MSM                                                                 
ISIN: ZAE000029534                                                              
("Massmart" or "the company")                                                   
MASSMART ACQUIRES SERVISTAR                                                     
Massmart is pleased to announce the acquisition of the 14 store Servistar chain 
of home improvement stores, subject to approval by the competition authorities. 
Located in Kwa-Zulu Natal, Eastern Cape and Southern Cape, Servistar provides a 
broad range of tools, equipment and supplies to the DIY, home improvement and   
garden enthusiast.                                                              
Following shortly on the acquisition of the three store De La Rey chain, located
in the Western Cape, and the 34 store, national Federated Timbers (Feds) group, 
this latest acquisition increases Massmart"s presence in the DIY, home          
improvement and building supplies sector to 71 stores.                          
The three acquisitions will be housed in the Masswarehouse division of Massmart 
and will generate sales approaching R2b in the year to June 2006 with profit    
before tax margins exceeding 6%.                                                
The three businesses referred to above will be acquired for a phased cash       
consideration of R660m to R750m dependent on performance over the next two      
years.                                                                          
Following the ruling of the Competition Commission, not expected before the end 
of May, the excellent management and staff of the acquired companies will retain
full responsibility and accountability for their performance, while realising   
any benefits arising from their ownership by Massmart.                          
Johannesburg                                                                    
9 March 2005                                                                    
Sponsor                                                                         
Deutsche Securities (SA) (Pty) Ltd                                              
Date: 09/03/2005 10:11:02 AM Supplied by www.sharenet.co.za                     
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