PSG Group/Reunert - Joint Financing Company

     PSG Group/Reunert - Joint Financing Company                                
     PSG GROUP LIMITED                                                          
     (Registration number 1970/008484/06)                                       
JSE share code: PSG & ISIN: ZAE000013017                                   
     ("PSG Group")                                                              
     and                                                                        
     REUNERT LIMITED                                                            
(Registration number 1913/004355/06)                                       
     JSE share code: RLO & ISIN: ZAE000057428                                   
     ("Reunert")                                                                
     JOINT FINANCING COMPANY                                                    
1.   PSG Capital is authorised to announce that agreement has been reached 
          between Reunert, PSG Group and Michiel Le Roux in respect of the      
          formation of a new joint venture financing company ("the New Venture" 
          or "the Company").  The New Venture will focus on niche financing     
opportunities, using RC&C Finance Company (Pty) Ltd"s ("RC&C")        
          existing business, PSG Group"s financial expertise and Michiel Le     
          Roux"s banking expertise, providing a platform for such financing     
          products.                                                             
2.   The New Venture will initially consist of:                            
          -    RC&C, a niche financing vehicle which provides finance in respect
               of Nashua Limited"s products and other entities with a book of   
               approximately R1.4 billion, valued at R375 million;              
-    ZS Rational (Pty) Ltd, a niche financing vehicle, which provides 
               bridging finance; and                                            
          -    PSG Group will contribute R308 million (partly financed through  
               its rights issue) and Michiel Le Roux R50 million (through his   
investment vehicle) to further capitalise the Company with R358  

               million.  Such funds will be utilised to expand its existing     
               business and to develop other niche businesses.                  
     3.   In addition to expanding the existing RC&C and ZS Rational business,  
the Company will focus on other niche markets in the financing arena  
          such as financing provided against client"s share portfolios.  The    
          share portfolios within the PSG Group alone amount to more than R24   
          billion, and PSG will conduct its scrip financing business through the
new company.                                                          
     4.   The initial shareholding in the Company will be:                      
          -    Reunert - 49.9%;                                                 
          -    PSG Group - 40%;                                                 
-    Michiel Le Roux and other minorities - 10.1%.                    
     5.   The effective date of the transactions is 1 December 2006, subject to 
          the fulfilment of certain suspensive conditions.                      
     6.   The board will initially consist of Messrs Michiel Le Roux (Chairman),
Reunert"s Gerrit Pretorius, Dave Rawlinson and Pat Gallagher, as well 
          as PSG"s Jannie Mouton, Chris Otto and Jaap du Toit.  The CEO of the  
          Company is Johan du Preez.                                            
     7.   The parties do not foresee a significant influence on earnings over   
the short term as a result of the transaction.                        
     8.   A more detailed announcement will be made in due course to the extent 
          required.                                                             
     Stellenbosch                                                               
2 October 2006                                                             
     Corporate advisor for the transaction and sponsor to PSG Group Limited     
     PSG Capital Limited                                                        
     Sponsor to Reunert Limited                                                 
RAND MERCHANT BANK (A division of FirstRand Bank Limited)                  
Date: 02/10/2006 05:30:47 PM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department