Netcare - Placing of 47.4 Million new ordinary shares

    Netcare - Placing of 47.4 Million new ordinary shares                       
    NETWORK HEALTHCARE HOLDINGS LIMITED                                         
    (Registration number 1996/008242/06)                                        
Code: NTC                                                                   
    ISIN number: ZAE000011953                                                   
    ("Netcare" or "the Group")                                                  
    Placing of 47.4 million new ordinary shares with Investec at R13.01 per     
share raising R616.8 million (the "Placing")                                
    Network Healthcare Holdings Limited ("Netcare") announces the placing of    
    47.4 million new ordinary shares in Netcare at a price of R13.01 per share, 
    raising R616.8 million pre-expenses. This placement was effected as a       
general issue for cash pursuant to the authority obtained by the Company at 
    its Annual General Meeting held on Friday, 27 January 2006. The shares      
    represent 2.7% of Netcare`s issued ordinary share capital immediately prior 
    to the Placing.                                                             
The Placing will enable Netcare to reduce borrowings acquired in September  
    2006 through the acquisition of Netpartner Investments Limited              
    ("Netpartner"). The placing will benefit the shareholders of Netcare as it: 
    *    reduces debt and strengthens the Netcare Group Balance Sheet and,      
importantly, the Netcare South African Balance Sheet;                  
    *    improves South African financial ratios, in particular debt to equity, 
         debt to earnings before interest, taxation, depreciation and           
         amortisation ("EBITDA") and interest cover ratios;                     
*    increases financial flexibility with regard to financing new           
         investment opportunities and capital expenditure;                      
    *    retires complicated and expensive derivative based debt thus adding    
         value to shareholders and reducing both complexity and forecasting     
risk.                                                                  
    Investec Holdings Limited will subscribe for the shares in Netcare and      
    Netpartner will simultaneously settle its debt obligation to Investec under 
    a zero cost collar obligation in cash. As a result of these transactions:   
*    Netcare shareholders` equity increases by R616.8 million;              
    *    Netcare group debt decreases by R616.8 million;                        
    *    the number of Netcare shares in issue (net of treasury shares)         
         increases by 47.4 million shares;                                      
*    the Netcare South Africa Debt to Equity ratio improves from 272.9% to  
         184.8%; and                                                            
    *    the Netcare South Africa Debt to EBITDA ratio improves from 3.4 times  
         to 3.0 times.                                                          
Notably, had Netpartner elected to return 47.4 million Netcare shares       
    directly to Investec under its zero cost obligations, the effects would be  
    the same.                                                                   
    Application has been made to the JSE Limited for the listing of the shares  
to be issued as a result of the Placing.                                    
    P G Nelson                                                                  
    CFO                                                                         
    11 December 2006                                                            
Sponsor                                                                     
    Merrill Lynch South Africa (Pty) Ltd                                        
Date: 11/12/2006 16:20:03 Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department.