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RLF - Rolfes - Additional resin plant and manufacturing agreement ROLFES TECHNOLOGY HOLDINGS LIMITED (Registration number 2000/002715/06) Share Code: RLF ISIN:ZAE000096202 ("Rolfes" or "the Group") www.rolfesza.com ADDITIONAL RESIN PLANT AND MANUFACTURING AGREEMENT Introduction Rolfes Chemicals (Pty) Limited, a subsidiary of Rolfes, has secured a second resin plant, situated in Durban, from Paintchem (Pty) Limited ("Paintchem"), effective 1 November 2007. Rolfes has also signed a long term product supply agreement with Paintchem. Rationale for transaction and key terms Rolfes secured the Paintchem resin plant by way of a lease agreement for 5 years, with an option to renew for a further 5 years. Rolfes also has an option to an outright purchase of the plant in the event that Paintchem wish to dispose of it. The agreement is further subject to conditions normal to a transaction of this nature. Other than a monthly lease payment, Rolfes has made no upfront capital payment in respect of the new resin plant facilities Rolfes has signed a long term supply agreement with Paintchem, in terms of which Rolfes will manufacture certain hydroxyl acrylic and other resin products for Paintchem on a cost plus margin basis. In terms of the supply agreement, Paintchem guarantees a minimum quantity of product offtake from Rolfes per annum, which quantity equates to up to 40% of the total plant capacity. The remaining plant capacity will be used to manufacture alkyd, hydroxy and woodfinish resin products for Rolfes` larger Durban based clients. The transaction not only more than doubles the resin making capacity of Rolfes but also provides the Group with a strategic foothold in the large and lucrative Kwazulu-Natal market. The transaction will free up to 60% of the Alberton plant capacity, which capacity will be used to further grow the resin business in the Gauteng and adjacent areas. Midrand 26 September 2007 Registered office: The Summit 269 16th Road Randjiespark Midrand Executive Directors Non-Executive Directors E van der Merwe(Chief Executive Officer) BT Ngcuka (Chairman) AJ Greeff (Financial Director) AJ Fourie L Dyosi Designated advisor PSG Capital (Pty) Limited Date: 26/09/2007 16:30:01 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
