Redefine - Financial Effects Of The Proposed Spearhead Transaction

     Redefine - Financial Effects Of The Proposed Spearhead Transaction         
                And Withdrawal Of Cautionary Announcement                       
     Redefine Income Fund Limited                                               
(Registration No. 1999/018591/06)                                          
     Share Code: RDF & ISIN Code: ZAE000023503                                  
     ("Redefine")                                                               
     FINANCIAL EFFECTS OF THE PROPOSED SPEARHEAD TRANSACTION AND WITHDRAWAL OF  
CAUTIONARY ANNOUNCEMENT                                                    
     INTRODUCTION                                                               
     Redefine linked unitholders are referred to the joint Redefine and         
     Spearhead Property Holdings Limited ("Spearhead") announcement dated 26    
July 2006 in relation to Redefine"s intention to acquire 100% of the linked
     units of Spearhead ("the transaction"). The consideration payable by       
     Redefine for the Spearhead linked units will comprise, at the election of  
     Spearhead linked unitholders, either:                                      
-    6.18 Redefine linked units per Spearhead linked unit; or            
       -    R31.00 in cash per Spearhead linked unit, together with interest    
       thereon at 8.5% (nominal annual compounded monthly) from 1 September     
       2006 until the date of payment of the cash consideration,                
provided that the maximum aggregate cash consideration cannot exceed 50% of
     the total consideration payable by Redefine.                               
     Set out below is the financial information relating to the transaction.    
     FINANCIAL EFFECTS                                                          
The Redefine category 1 acquisition circular will provide a combined       
     forecast of both Redefine and Spearhead to enable Redefine linked          
     unitholders to assess the forward yield on a Redefine linked unit.         
     Set out below is the forecast information of Spearhead for the year ended  
30 June 2007 as required in terms of section 13.6(e) of the JSE Limited    
     ("JSE")Listings Requirements. The forecast financial information has not   
     been reviewed or reported on by the accountants in terms of section 8 of   
     the JSE Listings Requirements.                                             
Uncontracted             

                                                       revenue as a             
                                                       % of total               
                                        R000"s         revenue                  
Revenue                            167,812        20.4%                    
     Net operational income             114,424                                 
     Distributable income               94,853                                  
     Notes:                                                                     
1.   The abovementioned forecast information does not include the yield    
          enhancement to be derived by Redefine linked unitholders as a result  
          of the receipt of the Spearhead July and August 2006 distributable    
          income.                                                               
2.   Where leases are due for renewal, the new leases are assumed to be    
          entered into at market related rentals and an average period of 4     
          months are provided for as vacant.                                    
     3.   Profit after taxation has not been disclosed as it is assumed that all
income before distribution will be distributed to linked unitholders. 
     4.   Net operational income includes development and share trading profits 
          of approximately R27,87 million.                                      
     The pro forma financial effects of the transaction on the net asset value  
and tangible net asset value per Redefine linked unit based on the reviewed
     interim financial results of Redefine for the six months ended 28 February 
     2006 and the Spearhead reviewed interim results for the six months ended 31
     December 2005 are not material and have not been disclosed. The purchase   
consideration was calculated assuming 50% of Spearhead linked unitholders  
     elected cash and the remainder Redefine linked units.                      
     WITHDRAWAL OF THE CAUTIONARY                                               
     Linked unitholders are advised that caution is no longer required to be    
exercised when dealing in their Redefine linked units.                     
     Rosebank                                                                   
     15 August 2006                                                             
     Corporate advisor, legal advisor and sponsor to Redefine                   
Java Capital (Proprietary) Limited                                         
Date: 15/08/2006 12:04:02 PM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department