Telkom potential offer for Business Connexion

Telkom potential offer for Business Connexion                                   
Telkom Limited                                                                  
(Registration Number 1991/005476/06)                                            
ISIN ZAE000044897                                                               
JSE and NYSE Share Code: TKG                                                    
("Telkom")                                                                      
Telkom potential offer for Business Connexion                                   
Telkom has made an approach to Business Connexion Group Limited ("BCX") to      
acquire the entire issued share capital of BCX at R9.00 per share, subject to   
certain conditions. Telkom will furthermore agree to BCX paying a dividend of   
R0.25 per BCX share from existing cash resources. Telkom will not increase the  
price at which it has made the approach.                                        
The acquisition of BCX will advance Telkom"s ongoing data strategy. In          
particular, Telkom believes that the acquisition will enhance Telkom"s ability  
to offer its customers end-to-end solutions across the ICT value chain.         
Telkom"s strength has to date been on ICT services relevant to its core         
connectivity proposition, managed network and internet access and BCX offers a  
complementary service offering. The acquisition of BCX will enable Telkom to    
have a meaningful presence in the IT services market extending its value chain  
with BCX"s proven capabilities in business application and support management,  
business process outsourcing and other IT related complementary lines of        
business.                                                                       
Telkom has approached five key shareholders of BCX holding in excess of 50% of  
the entire share capital of BCX. Telkom has received a combination of written   
and in-principle support from these shareholders to proceed with the potential  
offer                                                                           
Telkom hopes to work with the management of BCX to consummate a transaction to  
the benefit of both BCX and Telkom shareholders.                                
This announcement does not constitute a firm intention to make an offer for the 
purposes of the Securities Regulation Code on Takeovers and Mergers.            
Telkom will publish a further announcement in due course.                       
Johannesburg                                                                    
22 March 2006                                                                   
Financial advisor and sponsor: UBS                                              
Attorneys: Werksmans Inc.                                                       
Date: 22/03/2006 08:55:03 AM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department