Discovery and Vodacom bring cellphone technology to funeral cover market

Discovery and Vodacom bring cellphone technology to funeral cover market        
Discovery Holdings Limited                                                      
(Incorporated in the Republic of South Africa)                                  
(Registration number: 1999/007789/06)                                           
ISIN: ZAE000022331                                                              
Share Code: DSY                                                                 
("Discovery")                                                                   
News release                                                                    
20 November 2006                                                                
Another first for the life industry as Discovery and Vodacom brings cellphone   
technology to the funeral cover market                                          
Using the same methodology as purchasing prepaid cellphone airtime, South       
Africa"s fastest-growing major life assurer is pioneering a new marketing and   
selling channel for funeral cover aimed at the low-income market.               
Hylton Kallner, general manager of marketing for Discovery, says that a new     
marketing model was needed when Discovery Life decided to enter what is a "very 
competitive market."                                                            
"Cellphone penetration in SA is amongst the highest in the world, and is        
especially strong in the LSM 1- 5 bracket at which this product is aimed. So we 
decided to "piggyback" on the knowledge and habits of a very technologically    
sussed market to deliver a product which offers convenient access and value-for-
money.                                                                          
"Vodacom is proud to be part of this innovative service, creating an entirely   
new concept in funeral cover, while maintaining the familiarity, affordability, 
flexibility and control, based on its prepaid cellular platform.  This service  
opens up the world of funeral cover to all South Africans via Vodacom"s cellular
retail channels and cellular recharge infrastructure," says Shameel Joosub,     
Managing Director, Vodacom South Africa.                                        
"People are already very familiar with purchasing pre-paid airtime for their    
cellphones and we expect them to find it just as easy and convenient to use the 
same process to buy funeral cover now."                                         
Kallner says market research showed that there is a large appetite for          
simplifying the purchase of funeral cover.                                      
"We expect demand for buying cover via cellphone on a pay-as-you-go basis to be 
high, because it is more accessible, quicker and more convenient to organise    
than buying cover through traditional channels."                                
Currently many people buy cover by giving cash to stokvels that buy cover on    
their behalf.  Another model allows retailer credit card-holders to purchase    
cover as an add-on service, but not all people have cards and they sometimes    
lose sight of exactly what it is they are buying.                               
"Our research shows that people also like the control the pre-pay model gives   
them. And it gives people in remote rural areas equal access, so geography isn"t
a constraint on sound financial planning."                                      
"They also like the user-friendliness of the product, even though it is a       
totally new concept in funeral plans.  Every element of the Discovery Prepaid   
Funeral Plan starter pack is aimed at simplifying and clearly articulating the  
concept and how to use it, so it really makes it simple."                       
People wanting to buy the policy will be able to pick up these starter packs at 
participating Vodacom retail outlets and Spaza shops - initially only in        
Gauteng. The product will be available in other provinces from 2007.            
Discovery Prepaid Funeral Plan costs R40 a month and no other charges or costs  
are incurred on the product.                                                    
Anyone between the ages of 18 and 64 can apply for funeral cover and it will    
provide cover up to R10 000 for the person taking up the policy, their spouse   
and up to a maximum of three children.                                          
ENDS                                                                            
ISSUED BY:                 Beachhead Media & Investor Relations                 
Grant Henry                                                                     
(011) 214 2406/082 561 7172/ grant@bmsa.co.za                                   
ON BEHALF OF:           Discovery Health                                        
For further information please contact:                                         
Hylton Kallner                                                                  
Marketing General Manager at Discovery                                          
hyltonk@discovery.co.za                                                         
Tel: (011) 529 2842                                                             
Or visit www.discovery.co.za                       
Vodacom South Africa                                                            
Nicolene Visser                                                                 
Executive Head: Corporate Communication                                         
nicolene.visser@vodacom.co.za                                                   
Tel: (011) 653 5741                                                             
More on Discovery Life                                                          
Since its formation in 2000, Discovery Life has established itself as a         
fast-growing market leader in the risk-only life assurance market - a           
market it pioneered when it became the first to separate risk from              
investment. Through linking one"s health status with one"s life cover           
needs, Discovery Life has succeeded in driving down the cost of life            
cover and delivering value for policyholders. The increasing focus on           
retirement funding products in the industry provided an ideal context           
for the launch of its new-generation retirement Optimiser in June 2005.         
More recently, Discovery Life has entered the lower income market with          
Discovery Prepaid. The company has partnered with Smartcall, a Vodacom          
subsidiary to use prepaid vouchers to allow policyholders to activate           
and manage their funeral cover using their cellphones. Discovery Life           
covers some 400 000 lives.                                                      
Beachhead Media & Investor Relations                                            
A member of the Financial Dynamics International network                        
Tel: 011 214 2400/06                                                            
Cell: 082 561 7172                                                              
Fax: 011 214 2405                                                               
grant@bmsa.co.za                                       
www.bmsa.co.za                                          
1st Floor, Lumley House, 177 Jan Smuts Avenue, Rosebank                         
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Date: 20/11/2006 03:52:20 PM Supplied by www.sharenet.co.za                     
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