FWD - Freeworld Coatings Limited - Posting of circular and withdrawal of

FWD - Freeworld Coatings Limited - Posting of circular and withdrawal of        
cautionary announcement                                                         
FREEWORLD COATINGS LIMITED                                                      
(Incorporated in the Republic of South Africa)                                  
Registration number 2007/021624/06                                              
Share code: FWD          ISIN: ZAE000109450                                     
("Freeworld" or the "Company")                                                  
POSTING OF CIRCULAR AND WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT                   
Freeworld shareholders are referred to the announcement released on SENS on 23  
December 2010 stating, inter alia, that the Securities Regulation Panel         
("SRP") had granted an extension to the 14 day period for publication by        
Freeworld of a circular (the "Freeworld circular") in terms of Rule 27.2 of     
the Securities Regulation Code on Takeovers and Mergers. The Freeworld          
circular has been posted today, 17 January 2011.                                
In the Freeworld circular, the Freeworld board has, amongst other things,       
expressed its concerns regarding the conditionality, structure and timing of    
the offer by Kansai Paint Co., Ltd. ("Kansai") to acquire all or a portion of   
the Freeworld shares at R12.00 per share (the "Offer").  Freeworld has also     
noted an appeal to the full panel of the SRP in respect of the Acting           
Executive Director`s approval of the timetable contained in the circular        
posted by Kansai to Freeworld shareholders on 15 December 2010. The SRP is in   
the process of convening a panel for the hearing of such appeal. At the date    
of this announcement, the date for such hearing had not been settled, but       
Freeworld has impressed upon the SRP the urgency of the matter and the          
importance of the decision on the appeal being made and disseminated to         
Freeworld shareholders a reasonable period prior to closing date, currently     
anticipated to be 18 February 2011.                                             
In light of the publication of the Freeworld circular the Company is satisfied  
that it is not in possession of any material price sensitive information        
relating to the Offer and that caution is therefore no longer required to be    
exercised by shareholders when dealing in their Freeworld shares.               
Johannesburg                                                                    
17 January 2011                                                                 
Merchant bank and sponsor to Freeworld                                          
RAND MERCHANT BANK (a division of FirstRand Bank Limited)                       
Attorneys to Freeworld                                                          
Read Hope Phillips Thomas & Cadman Incorporated                                 
Date: 17/01/2011 13:36:01 Supplied by www.sharenet.co.za                     
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