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TRU - Truworths International Limited - Business update Truworths International Limited (Incorporated in the Republic of South Africa) (Registration number 1944/017491/06) JSE Code: TRU NSX Code: TRW ISIN: ZAE000028296 BUSINESS UPDATE Truworths International Limited (`the Group`) announces that sale of merchandise for the first 19 weeks of the 2008 financial period increased to R 1 850 million, 15.7% above the corresponding period in 2006. Group comparable store retail sales grew by 7% and product inflation was approximately 6% during the period. The Group opened 4 Identity, 5 Truworths, 3 Truworths Man, 2 YDE and 2 Uzzi stores, relocated 3 stores, renovated and extended 7 stores and closed 1 store during the period. A further 11 new Identity, 8 new Truworths, 1 new Truworths Man and 6 new Uzzi stores, as well as 12 store renovations and extensions, 2 relocations and 4 store closures, are planned for the remainder of the 2008 financial period, resulting in an expected increase in overall trading space of 12%. The Group`s strategy of meaningfully growing the active account base over the last few years has as anticipated resulted in higher levels of delinquency and net bad debt relative to those reported in prior periods. The increases in net bad debt and the doubtful debt allowance, although at the upper end of management expectations, are within acceptable parameters. These effects have been partially offset by additional interest income arising from higher interest rates and increased utilisation of interest-bearing plans. A slowdown in the take-up of new accounts and a downturn in credit line extension on existing accounts have been noted. These are attributable both to the higher prevailing interest rates, which have reduced the disposable income of consumers, and to the implementation of the National Credit Act. Credit has been successfully launched within Uzzi, with the uptake thereof in line with management expectations. The Group is likely to exercise its option to acquire the remaining 49% of the business during the current financial period. While the past few years have yielded unprecedented growth, the economic environment is now considerably tougher, and expectations are that store retail sales growth will moderate accordingly. The 2008 financial period will comprise 53 trading weeks, with the interim results for the 27 week period to 30 December 2007 scheduled for release on or about 21 February 2008. 8 November 2007 Cape Town Lead Sponsor: Barnard Jacobs Mellet Corporate Finance (Pty) Ltd Joint Sponsor: Standard Bank Date: 08/11/2007 10:02:33 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.
