LAB - Labat - Apportionment of cost for taxation purposes and renewal of

LAB - Labat - Apportionment of cost for taxation purposes and renewal of        
cautionary announcement                                                         
LABAT AFRICA LIMITED                                                            
Incorporated in the Republic of South Africa                                    
(Registration number 1986/001616/06)                                            
Share code: LAB    ISIN: ZAE000018354                                           
("Labat")                                                                       
APPORTIONMENT OF COST FOR TAXATION PURPOSES AND RENEWAL OF CAUTIONARY           
ANNOUNCEMENT                                                                    
Introduction                                                                    
Labat shareholders are referred to the circular dated 25 February 2008          
("circular") regarding, inter alia, the unbundling of Total Client Services     
Limited ("TCS") and distribution of the shares in TCS to Labat shareholders     
recorded in the register as at the close of business on Friday, 11 April 2008   
("record date") to be effected by way of distribution in specie in terms of     
section 90 of the Companies Act, 1973 (Act 61 of 1973), as amended, and in      
accordance with section 46 of the Income Tax Act, 1962 (Act 58 of 1962), as     
amended, in the ratio of one TCS share for every Labat share held on the record 
date. The conditions precedent relating to the unbundling which included, inter 
alia, approval to list TCS shares on JSE Limited ("JSE") were fulfilled and     
shareholders were advised of such fulfillment in an announcement dated 27 March 
2008. TCS shares commenced trade on the JSE with effect from the opening of     
business on Monday, 7 April 2008.                                               
The purpose of this announcement is to notify Labat shareholders of the ratio to
be used in the apportionment for tax purposes of the cost of a Labat share      
between the Labat share after the unbundling ("retained Labat share") and a TCS 
share received pursuant to the unbundling ("unbundled TCS share"). A summary of 
the South African tax considerations was set out on page 16 of the circular.    
The apportionment ratio                                                         
The ratio of the respective market values of the retained Labat shares and the  
unbundled TCS shares on the JSE as at close of trade on Tuesday, 8 April 2008,  
being the day after the listing date, was 16.22% relating to the retained Labat 
shares and 83.78% relating to the unbundled TCS shares ("apportionment ratio"). 
The apportionment ratio is to be used to apportion the cost of a Labat share    
between a retained Labat share and an unbundled TCS share for the determination 
of profits and losses, of a capital or trading nature, derived on any future    
disposals of retained Labat shares or unbundled TCS shares.                     
In determining the base cost for the retained Labat shares and the unbundled TCS
shares for capital gains tax purposes, Labat shareholders are deemed to have    
acquired both the retained Labat shares and the unbundled TCS shares on the     
dates on which the retained Labat shares were originally acquired. Should Labat 
shareholders have any queries regarding the taxation consequences of the        
unbundling and the calculation of its cost for taxation purposes, it is         
advisable to consult a tax advisor in this regard.                              
Renewal of cautionary                                                           
Further to the cautionary announcement dated 25 February 2008, shareholders are 
advised that the de-listing of Labat may have a material effect on the price at 
which Labat`s shares trade. Accordingly, shareholders are advised to continue to
exercise caution when trading in Labat shares on the JSE until a further        
announcement is made.                                                           
9 April 2008                                                                    
Sponsor                                                                         
Merchant Sponsors (Proprietary) Limited                                         
Date: 09/04/2008 14:37:50 Supplied by www.sharenet.co.za                     
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