SNV - Santova - Acquisition Announcement And Withdrawal Of Cautionary

SNV - Santova - Acquisition Announcement And Withdrawal Of Cautionary           
               Announcement                                                     
SANTOVA LOGISTICS LIMITED                                                       
(Registration Number 1998/018118/06)                                            
(Formerly Spectrum Shipping Limited)                                            
Share Code:  SNV & ISIN:  ZAE000090650                                          
("Santova" or "the company")                                                    
ACQUISITION OF MOGAL INTERNATIONAL LIMITED AND WITHDRAWAL OF CAUTIONARY         
ANNOUNCEMENT                                                                    
1.   INTRODUCTION                                                               
    River Group is authorised to announce that, in relation to the cautionary   
announcement published on SENS on 6 March 2007, Santova has, as one         
    indivisible transaction, with effect from 1 March 2006, acquired the total  
    issued share capital of and all claims on shareholder loan accounts against 
    Mogal International Limited, which owns and operates a comprehensive        
customs clearing and forwarding logistics business with offices in West     
    Horndon, United Kingdom ("the Acquisition / Transaction") from Sheraton     
    Copland-Mander ("the Vendor").                                              
2.   BACKGROUND AND RATIONALE                                                   
Santova offers international and domestic clients integrated strategic      
    logistics management solutions through value added services ("best of       
    breed") that enable companies to differentiate themselves so enabling them  
    to effectively compete on a global basis. These "end to end" supply chain   
logistics solutions are effected through its eight subsidiaries, namely:    
    -    Impson Logistics (Proprietary) Ltd - providing Customs and Excise      
         clearing and forwarding as well as consultancy services such as        
         Customs accreditation;                                                 
-    Santova NVOCC (Proprietary) Limited ("NVOCC") - a non-vessel owner     
         common carrier;                                                        
    -    Santova Warehousing Solutions (Proprietary) Limited ("SWS") -          
         providing warehousing and distribution solutions to clients;           
-    e-OSCI Logistics (Pty) Ltd ("e-OSCI") - virtual supply chain           
         management and optimisation;                                           
    -    Leading Edge Insurance Brokers (Proprietary) Limited - providing       
         marine and other insurance products to clients;                        
-    Santova Financial Services (Proprietary) Limited ("SCFS") - financial  
         and trade solutions;                                                   
    -    Santova Logistics Ltd (Hong Kong) - supply chain logistics solutions;  
         and                                                                    
-    Santova Patent Logistics Co., Ltd (Hong Kong) - supply chain logistics 
         management solutions in mainland China (12 representative offices)     
To this end Santova has entered into the above transaction to establish a       
presence in the United Kingdom, which will enable the Group to manage and       
control the entire supply chain of its clients between South Africa, Hong Kong, 
Mainland China and the United Kingdom. Santova will be actively investigating   
other opportunities as they come along.                                         
3.   ACQUISITION AND PURCHASE CONSIDERATION                                     
Santova has entered into an arm`s length agreement with the sole            
    shareholder of Mogal International Ltd ("the Vendor") to acquire 100% of    
    the issued share capital in and claims on shareholder loan accounts against 
    Mogal International Ltd, with effect from 1 March 2006.                     
The transaction consideration payable to the vendor upon closing and after  
    fulfillment of the conditions precedent referred to below is the amount of  
    4 818 750 Santova shares, to be issued at a 10% discount to the 30 day      
    volume weighted average price as calculated at close of business on         
Tuesday, 13 March 2006, plus cash in the amount of GBP 86 500.              
4.   CONDITIONS PRECEDENT AND OTHER REGULATORY MATTERS                          
    All the conditions precedent have been complied with.                       
    The company is currently listed on the AltX board of the JSE list and this  
transaction is therefore classified as a Category 3 transaction.            
5.   FINANCIAL EFFECTS                                                          
    As the above acquisition is of a strategic nature, financial effects of     
    these transactions have not been calculated as the board is of the opinion  
that, on their own, they will not have a significant effect on the          
    financial position of the Group.                                            
    Following the successful completion of the transaction, the articles of     
    association of Mogal International Ltd will be amended to the extent        
required to comply with Schedule 10 of the Listing Requirements of the JSE. 
6.   WITHDRAWAL OF CAUTIONERY ANNOUNCEMENT                                      
    Shareholders are advised that subsequent to this announcement the           
    cautionary announcement, in relation to trading of securities of the        
company, is now withdrawn                                                   
Durban                                                                          
March 14, 2007                                                                  
Corporate and Designated Advisor                                                
River Group                                                                     
Date: 14/03/2007 11:01:03 Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department.