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Firstrand Limited - Press Release: Healthy Outcome For Momentum FIRSTRAND LIMITED (Incorporated in the Republic of South Africa) (Registration number 1966/010753/06) (Share code: FSR) (ISIN: ZAE000066304) ("FirstRand") Momentum Group Limited (Incorporated in the Republic of South Africa) (Registration number 1904/002186/06) ("Momentum") PRESS RELEASE: Healthy outcome for Momentum Momentum has agreed to sell its 34% shareholding in African Life to Sanlam at a price of R882 million which represents R22.50 per share. In a separate transaction Momentum also announced that they have made an offer to acquire African Life Health (ALH) from African Life for R175 million. Hillie Meyer, Managing Director of Momentum commented: "We have indicated over the last two years that we are sellers of our stake in African Life. We are very satisfied with the transactions we concluded and believe this has resulted in an attractive outcome for all shareholders". When asked why Momentum wanted to sell its shareholding in African Life, Meyer said that Momentum operates in the upper income market in South Africa and that within the FirstRand Group there are other opportunities to reach the middle and lower end of the market. "Momentum is currently involved in such an initiative with FNB, so strategically it is just the best move for us" Meyer commented. "The acquisition of ALH is complimentary to our current strategy and positioning in the health industry," said Meyer. "ALH has a footprint in market segments where Momentum would like to have a presence, for example local governments, the emerging market as well as Africa". With this transaction Momentum will entrench its position as a significant player in the health industry and maximise economies of scale by servicing various health market segments. Peter Botha, MD of ALH said that Momentum and ALH share a strategic vision of consolidating the market and growth by acquisition. "This is a win-win deal for both parties concerned. Momentum gives ALH access to a large capital base and ALH gives Momentum access to new market segments. Our clients can look forward to become part of one of the most innovative and successful companies in the market and have access to its range of products" said Botha. The acquisition of ALH will more than double the number of principal members under Momentum"s administration from 105 000 to more than 240 000. Both transactions are subject to regulatory approvals, including that of the Competition Commission. 10 August 2005 Spokespersons: African Life transaction: Hillie Meyer, MD Momentum Frans Truter, Head of Strategic Investments Momentum African Life Health transaction: Hillie Meyer, MD Momentum Nicolaas Kruger, Head of Employee Benefits and Health Business, Momentum Dr Peter Botha, MD African Life Health Contact: Sonja Malan PR Momentum 012 673 7543 083 635 6965 Corporate advisor to Momentum Rand Merchant Bank Date: 10/08/2005 12:59:03 PM Supplied by www.sharenet.co.za Produced by the JSE SENS Department
