NTCP - Netcare - 6 500 000 Cumulative, Non-Redeemable, Non-Participating, Non-

NTCP - Netcare - 6 500 000 Cumulative, Non-Redeemable, Non-Participating, Non-  
Convertible Preference Shares                                                   
NETWORK HEALTHCARE HOLDINGS LIMITED                                             
Incorporated in the Republic of South Africa                                    
Registration No. 1996/008242/06                                                 
JSE Code - preference shares: NTCP                                              
ISIN number: ZAE000081121                                                       
("Netcare" or the "Company")                                                    
6 500 000 CUMULATIVE, NON-REDEEMABLE, NON-PARTICIPATING, NON-CONVERTIBLE        
PREFERENCE SHARES ("PREFERENCE SHARES")                                         
IMPLICATIONS OF 2007 / 2008 BUDGET SPEECH                                       
The introduction in 2008 of withholding tax on dividends and the elimination of 
STC (Secondary Tax on Companies) on a phased basis have been proposed as        
part of the recent budget presentation.  The text of draft legislation          
giving effect to these proposed changes has not yet been released.              
A number of enquiries have been received from preference shareholders as to     
whether Netcare will increase preference dividends in view of the               
anticipated negative impact on preference shareholders of the new dividend      
tax, while Netcare is expected to benefit from the proposed abolition of        
STC.  The purpose of this announcement is to inform Netcare preference          
shareholders that to the extent that the proposed changes in the tax            
legislation result in the preference dividends being taxable in their hands     
and in a reduced cost to the Company in servicing the preference shares, it     
would be the intention of the Company to pass on the benefit of the reduced     
cost to the preference shareholders.                                            
To the extent that any increase in the preference share dividend rates, to      
compensate preference shareholders for this new tax, may require an             
amendment to the Company`s Articles, is a matter which would need to be         
considered in due course by both the ordinary and preference shareholders       
once further information regarding the legislation which will give effect       
to the proposed changes, becomes available.                                     
A further announcement in this regard will be made once more detailed           
information on the proposed legislation is published.                           
JOEL WOLPERT                                                                    
Company Secretary                                                               
Tel No: (011) 301-0213                                                          
Fax No: (011) 301-0481                                                          
E-mail joel.wolpert@netcare.co.za                                               
28 March 2007                                                                   
Sponsor                                                                         
Merrill Lynch South Africa (Pty) Limited                                        
Date: 28/03/2007 12:49:51 Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department.