FWD - Freeworld Coatings Limited - Decision of the appeal committee of

FWD - Freeworld Coatings Limited - Decision of the appeal committee of          
the securities regulation panel on takeovers and mergers ("SRP") on             
3 February 2011                                                                 
FREEWORLD COATINGS LIMITED                                                      
(Incorporated in the Republic of South Africa)                                  
Registration number 2007/021624/06                                              
Share code: FWD          ISIN: ZAE000109450                                     
("Freeworld" or the "Company")                                                  
DECISION OF THE APPEAL COMMITTEE OF THE SECURITIES REGULATION PANEL ON          
TAKEOVERS AND MERGERS ("SRP") ON 3 FEBRUARY 2011                                
Further to the announcement released by the Company on SENS on 31               
January 2011, the Appeal Committee of the SRP ("Appeal Committee") has          
on 17 February 2011 handed down a decision in respect of the appeal             
noted by Freeworld in respect of the timetable in the offer circular            
from Kansai Paint Co., Ltd ("Kansai") (the "Kansai offer timetable")            
dated 15 December 2010 (the "Kansai offer circular"). The full text of          
the decision of the Appeal Committee was released by the SRP on SENS at         
15:10 on 17 February 2011.                                                      
The Freeworld board`s understanding of the implications of this                 
decision is as follows:                                                         
1.   No consent for a dispensation from Rule 28.7 of the Securities             
Regulation Code on Takeovers and Mergers ("Code")was granted by the             
Executive Director of the SRP ("Executive Director")at the time of              
Kansai issuing the Kansai offer circular and no such consent, despite           
Kansai`s application for such consent, has been granted by the Appeal           
Committee; and                                                                  
2.   If (as expected) the Kansai offer is not unconditional as at 11            
March 2011, the Kansai offer will lapse on 11 March 2011 unless Kansai          
applies to the Executive Director for, and is granted, consent for              
dispensation from Rule 28.7 of the Code.                                        
The Freeworld board would have preferred that the merits of an                  
application by Kansai for consent for a dispensation from Rule 28.7 of          
the Code had been dealt with by the Appeal Committee at the time of the         
hearing of the appeal, as was requested at that time. The Freeworld             
board will continue to monitor developments in the interests of                 
Freeworld shareholders.                                                         
The independent committee of the Freeworld board, having considered all         
information contained in this announcement, accepts full responsibility         
for the accuracy of such information and certifies that, to the best of         
its knowledge and belief (having taken all reasonable care to ensure            
that this is the case), the information contained in this announcement          
is in accordance with the facts and that nothing that is likely to              
affect the import of this information has been omitted.                         
Johannesburg                                                                    
18 February 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: 18/02/2011 07:05:02 Supplied by www.sharenet.co.za                     
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