PSG Group / PSL / Arch Equity - Joint Cautionary Announcement

PSG Group / PSL / Arch Equity - Joint Cautionary Announcement                   
PSG GROUP LIMITED                                                               
Registration number 1970/008484/06)                                             
JSE share code: PSG  ISIN code: ZAE000013017                                    
("PSG Group")                                                                   
PSG Financial Services Limited                                                  
Registration number 1919/000478/06                                              
JSE share code: PGFP ISIN code: ZAE000060166                                    
("PSL")                                                                         
ARCH EQUITY LIMITED                                                             
Registration number 2004/004019/06                                              
JSE share code: ACH  ISIN code: ZAE000061073                                    
("Arch Equity")                                                                 
(collectively referred to as "the companies")                                   
JOINT CAUTIONARY ANNOUNCEMENT                                                   
Shareholders of the companies are advised that PSG Group and Arch Equity have   
agreed in principle to implement a transaction whereby the two companies would  
merge and which will result in PSG remaining listed on the JSE Limited.         
Management of the companies have provisionally determined an exchange ratio of  
one new PSG share for every 2,71 Arch Equity shares. The successful conclusion  
of such a transaction may have an effect on the price of the companies" shares. 
The transaction under consideration would be subject to various conditions,     
including, but not limited to PSG and Arch Equity board approvals, shareholder  
approvals, JSE Limited approval, regulatory approvals (to the extent required)  
and obtaining of a fair and reasonable opinion from an independent expert.      
Shareholders of the companies are accordingly advised to exercise caution when  
dealing in the companies" shares until a further announcement is made in this   
regard.                                                                         
Stellenbosch                                                                    
14 February 2006                                                                
PSG Capital Limited                                                             
Sponsor to PSG Group                                                            
Designated Advisor to Arch Equity                                               
Date: 14/02/2006 04:12:11 PM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department