African Life/ Sanlam/ Momentum - Additional Payment Relating To The Disposal Of

African Life/ Sanlam/ Momentum - Additional Payment Relating To The Disposal Of 
African Life Health (Proprietary) Limited ("ALH") To Momentum                   
AFRICAN LIFE ASSURANCE COMPANY LIMITED                                          
(Incorporated in the Republic of South Africa)                                  
(Registration number 1911/003818/06)                                            
JSE code: AFI   ISIN: ZAE000000246                                              
("African Life")                                                                
SANLAM LIMITED                                                                  
(Incorporated in the Republic of South Africa)                                  
(Registration number 1959/001562/06)                                            
JSE code: SLM   NSX code: SLA                                                   
ISIN: ZAE000070660                                                              
("Sanlam")                                                                      
MOMENTUM GROUP LIMITED                                                          
(Incorporated in the Republic of South Africa)                                  
(Registration number 1904/002186/06)                                            
("Momentum")                                                                    
ADDITIONAL PAYMENT RELATING TO THE DISPOSAL OF AFRICAN LIFE HEALTH (PROPRIETARY)
LIMITED ("ALH") TO MOMENTUM                                                     
1. INTRODUCTION                                                                 
Shareholders are referred to the various announcements released on SENS and the 
circular to African Life shareholders dated 7 September 2005 relating to:       
- a scheme of arrangement in terms of section 311 of the Companies Act, No. 61  
of 1973, as amended, proposed by Sanlam between African Life and the African    
Life ordinary shareholders, other than Sanlam (in respect of African Life       
ordinary shares held by the Sanlam Group Companies in shareholders" funds), the 
African Life Employee Shareholders Scheme Trust and African Life Investments    
(Proprietary) Limited (the "scheme"); and                                       
- the disposal by African Life of ALH to Momentum (the "ALH disposal").         
All regulatory approvals necessary to implement the scheme have been obtained   
and the final remaining suspensive condition was fulfilled on Thursday, 1       
December 2005. Shareholders of African Life are reminded that the operative date
of the scheme was Monday, 12 December 2005 on which date payment of the base    
offer consideration of R22.05 per African Life ordinary share was effected.     
2. THE ALH DISPOSAL AND THE ALH ADDITIONAL DISPOSAL PAYMENT                     
Shareholders are advised that the final suspensive condition relating to the ALH
disposal, being the approval of the Competition Authorities as required in terms
of the Competition Act, No. 89 of 1998, as amended, has not been fulfilled and  
therefore the ALH disposal has not as yet become unconditional. The Competition 
Tribunal has approved the ALH disposal subject to there being no overlap in     
directors appointed by FirstRand Limited to the boards of Discovery Holdings    
Limited and Momentum respectively after 12 January 2006.  The terms of the      
transaction between African Life and Momentum are such that Momentum may accept 
in writing the condition imposed by the Competition Tribunal. Momentum and its  
parent company FirstRand Limited are currently considering the condition set by 
the Competition Tribunal.                                                       
If Momentum accepts the condition referred to above, Sanlam will make payment of
the ALH additional disposal payment to scheme participants. Failing this, the   
provisions set out in the "Definitions and Interpretations" section of the      
circular to African Life shareholders dated 7 September 2005 relating to the    
"ALH third party transaction" will apply.                                       
3. TERMINATION OF LISTING                                                       
Since the ALH additional disposal payment or the ALH additional third party     
payment (if any) will be made after the operative date of the scheme, the       
listing of the African Life ordinary shares on the JSE Limited ("JSE") will only
be terminated on the first business day following any such additional payment.  
However the listing of the African Life ordinary shares on the JSE will remain  
suspended for the duration of such period.                                      
Johannesburg                                                                    
14 December 2005                                                                
Corporate advisor to African Life                                               
   Metier                                                                       
Sponsor to African Life                                                         
Merrill Lynch South Africa (Pty) Ltd                                         
Independent advisor to African Life                                             
   KPMG                                                                         
Corporate law advisor to African Life                                           
EDWARD NATHAN (PROPRIETARY) LIMITED                                          
   Corporate Law advisers                                                       
   Registration number 2004/005665/07                                           
Reporting accountants to African Life                                           
PricewaterhouseCoopers Inc.                                                  
   Chartered Accountants (SA)                                                   
   Registered Accountants & Auditors                                            
  (Registration no. 1998/012055/21)                                             
Attorneys to African Life                                                       
   Knowles Husain Lindsay Inc Attorneys                                         
  (Registration number 2000/000004/21)                                          
Corporate advisor and transactional sponsor to Sanlam                           
ABSA                                                                         
   Corporate and Merchant Bank                                                  
   Corporate Finance                                                            
   ABSA Bank Limited                                                            
(Registration number 1986/004794/06)                                          
Attorneys to Sanlam                                                             
   Jowell Glynn & Marais                                                        
Merchant bank to Momentum                                                       
RAND MERCHANT BANK                                                           
   A Division of FirstRand Bank Limited                                         
Attorneys to Momentum                                                           
   Hofmeyr Herbstein Gihwala Inc.                                               
(Registration number 1997/001523/21)                                          
Date: 14/12/2005 03:53:02 PM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department