FRT - Faritec Holdings Limited - Specific issue of shares for cash and further

FRT - Faritec Holdings Limited - Specific issue of shares for cash and further  
cautionary announcement                                                         
Faritec Holdings Limited                                                        
(Registration number 1998/004872/06)                                            
Share code: FRT                                                                 
ISIN: ZAE000016838                                                              
("Faritec" or "the Company")                                                    
SPECIFIC ISSUE OF SHARES FOR CASH AND FURTHER CAUTIONARY ANNOUNCEMENT           
INTRODUCTION                                                                    
Shareholders are referred to the previous cautionary announcements (the last of 
which was dated 10 March 2010) in relation to the fund raising being undertaken 
by the company. In the cautionary announcement dated 10 March 2010 shareholders 
were advised that Faritec was in discussions with:                              
-    Shoden Data Systems (Pty) Ltd ("Shoden") and certain members of the Faritec
    management team (the "Management Consortium") to underwrite R30 million of  
a R60 million rights offer; and                                             
-    the creditors of the Faritec group in relation to the implementation of a  
    scheme of arrangement (pursuant to section 311 of the Companies Act) (the   
    "scheme") between Faritec Enterprise Solutions (Pty) Ltd ("Faritec          
Enterprise Solutions") and its creditors, in terms of which the various     
    classes of creditors will be asked to either convert their debt to Faritec  
    equity or compromise their debt.                                            
Shareholders are advised that Faritec, Shoden and the Management Consortium have
agreed not to proceed with the implementation of the partially underwritten     
rights offer. However Faritec is in further discussion with the Management      
Consortium and Tabara Investments (Pty) Ltd ("Tabara") pursuant to which they   
will invest R30 million in Faritec. Shareholders are further advised that       
Faritec is proceeding with the scheme.                                          
In terms of the proposed scheme between Faritec Enterprise Solutions and its    
creditors unsecured creditors will be issued one ordinary Faritec share at a    
price of 1 cent for each 1 cent of debt they are owed by Faritec Enterprise     
Solutions.                                                                      
The company is proceeding with the steps necessary to implement the scheme and  
further details of the scheme will be communicated in due course.               
WORKING CAPITAL AND RESTRUCTURE                                                 
Faritec`s working capital remains under pressure. In addition to the raising of 
additional funding from the Management Consortium and Tabara and the scheme of  
arrangement with unsecured creditors, management has made significant advances  
in restructuring the Company including in relation to the disposal of non-core  
assets to address the working capital pressure.                                 
FURTHER CAUTIONARY                                                              
Shareholders are advised to continue to exercise caution when dealing in their  
Faritec securities until the release of further announcements.                  
26 April 2010                                                                   
Sponsor                                                                         
Java Capital (Proprietary) Limited                                              
Date: 26/04/2010 10:19:01 Supplied by www.sharenet.co.za                     
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