AET - Alert Steel Holdings Limited - acquisition of the business of

AET - Alert Steel Holdings Limited - acquisition of the business of             
Steelmecca (Pty) Limited                                                        
ALERT STEEL HOLDINGS LIMITED                                                    
(Incorporated in the Republic of South Africa)                                  
(Registration number 2003/005144/06)                                            
JSE code: AET                                                                   
ISIN: ZAE000092847                                                              
("Alert")                                                                       
ACQUISITION OF THE BUSINESS OF STEELMECCA (PTY) LIMITED                         
Alert is pleased to announce that Alert Steel Proprietary Limited ("Alert       
Steel"), a wholly-owned subsidiary of Alert, has reached an agreement with      
Steelmecca (Proprietary) Limited ("Steelmecca"), a retailer of steel and        
related products, on 11 May 2012, in terms of which Alert Steel will acquire    
the business conducted by Steelmecca for cash amounting to R4,265,868.89,       
which equates to the total net asset value of the business of Steelmecca,       
with effect from 1 May 2012 ("the Acquisition").                                
The rationale of the Acquisition for Alert is that it allows Alert to expand    
its footprint in the North West Province.                                       
The Acquisition is not categorized in terms of the JSE Listing Requirements.    
Steelmecca is a related party to Alert as it is 100% owned by a major           
shareholder of Alert, being Capital Africa Steel Proprietary Limited ("CAS").   
The only outstanding suspensive condition to the Acquisition is the approval    
of the Acquisition by CAS, as the sole shareholder in Steelmecca.               
The Acquisition`s pro forma financial effect on Alert`s net asset value per     
share, tangible net asset value per share, earnings per share and headline      
earnings per share is less than three percent.                                  
21 May 2012                                                                     
Designated Adviser                                                              
QuestCo (Pty) Limited                                                           
Legal Adviser                                                                   
Prinsloo, Tindle & Andropoulos Inc.                                             
Date: 21/05/2012 17:48:01 Supplied by www.sharenet.co.za                     
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