FAMOUS BRANDS - Payment to shareholders by way of a reduction of capital

     FAMOUS BRANDS - Payment to shareholders by way of a reduction of capital   
                     from the share premium account                             
     FAMOUS BRANDS LIMITED                                                      
Incorporated in the Republic of South Africa                               
     Registration number 1969/004875/06                                         
     Share code:  FBR                                                           
     ISIN:  ZAE000053328                                                        
"Famous Brands" or "the group"                                             
     Payment to shareholders by way of a reduction of capital from the share    
     premium account                                                            
     INTRODUCTION                                                               
As indicated in the interim results, an aggregate payment to shareholders  
     of R15 767 143, or 18 cents per share, is proposed, which payment shall    
     be effected by means of a reduction of share premium (the "December        
     payment").                                                                 
A circular containing details of the above and including notice of a       
     general meeting was posted to shareholders on Thursday, 2 November 2006.   
     Set out below are the pro forma financial effects and salient dates in     
     respect of the December payment.                                           
PRO FORMA FINANCIAL EFFECTS                                                
     The pro forma financial effects of the December payment to shareholders    
     are set out below. These financial effects are prepared for illustrative   
     purposes only and may not give a fair reflection of the financial          
position of Famous Brands after the December payment to shareholders is    
     made. The pro forma financial effects are the responsibility of the board  
     of directors of Famous Brands.                                             
                                        before    after     % change            
(cents)   (cents)                       

     Net Asset value per share          318.61    300.37    (5.7)               
     Net tangible asset value per       69.19     50.94     (26.4)              
     share                                                                      
The before column reflects Famous Brand"s net asset value per share and    
     net tangible asset value per share as per the unaudited interim results    
     for the six months ended 31 August 2006.                                   
     The after column reflects Famous Brand"s net asset value per share and     
net tangible asset value per share after the December payment to           
     shareholders, based on the assumption that the December payment to         
     shareholders was made on 31 August 2006 and the associated costs of the    
     December payment to shareholders were made in cash and writtenoff share    
premium.                                                                   
     The pro forma financial information has been prepared in accordance with   
     the accounting policies adopted in presenting the interim results.         
     SALIENT DATES                                                              
The salient dates in respect of the payment to shareholders are as         
follows:                                                                        
                                                    2006                        
     Last day to lodge forms of proxy for the       Wednesday, 15 November      
general meeting by 08h00 on                                                
     General meeting to be held at 08h00 on         Friday, 17 November         
     Announcement of results of general meeting     Friday, 17 November         
     and declaration of December payment to                                     
shareholders on the Securities Exchange News                               
     Service                                                                    
     Publication of announcement of results of      Monday, 20 November         
     general meeting in the press and of                                        
declaration of December payment to                                         
     shareholders on                                                            
     Last day to trade in order to qualify for the  Friday, 24 November         
     payment to shareholders                                                    
Shares trade "ex" the entitlement to the       Monday, 27 November         
     December payment to shareholders from                                      
     The record date for the December payment to    Friday, 1 December          
     shareholders                                                               
Date of payment of December payment to         Monday, 4 December          
     shareholders                                                               
     Note:                                                                      
     No de-materialisation or re-materialisation of share certificates may      
take place between Monday, 27 November 2006 and Friday, 1 December 2006,   
     both days inclusive.                                                       
     Rosebank                                                                   
     9 November 2006                                                            
Corporate advisor, legal advisor and sponsor                               
     Java Capital (Proprietary) Limited                                         
     Reporting accountants                                                      
     RSM Betty & Dickson (Johannesburg)                                         
Date: 09/11/2006 04:54:02 PM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department