ILV - Illovo Sugar Limited - Capital reduction distribution by way of a

ILV - Illovo Sugar Limited - Capital reduction distribution by way of a         
reduction of contributed tax capital in respect of the year ended 31 March 2012 
ILLOVO SUGAR LIMITED                                                            
(Incorporated in the Republic of South Africa)                                  
Company registration number 1906/000622/06                                      
Share Code: ILV                                                                 
ISIN: ZAE000083846                                                              
("Illovo" or "the Company")                                                     
CAPITAL REDUCTION DISTRIBUTION BY WAY OF A REDUCTION OF CONTRIBUTED TAX CAPITAL 
IN RESPECT OF THE YEAR ENDED 31 MARCH 2012                                      
As announced in the results announcement on SENS today, the board of directors  
has approved a capital reduction distribution by way of a reduction of          
Contributed Tax Capital(in lieu of a final dividend)of 43.0 cents per share, for
the year ended 31 March 2012, to Illovo shareholders recorded in the register on
Friday, 6 July 2012 ("the Distribution").                                       
In compliance with the requirements of Strate, the electronic settlement and    
custody system used by the JSE Limited, the Company has determined the following
salient dates for the payment of the Distribution:                              
Last day to trade cum the capital              Friday,29 June 2012              
distribution                                                                    
Shares commence trading ex the capital         Monday,2 July 2012               
distribution                                                                    
Record date                                    Friday,6 July 2012               
Payment of final capital distribution          Monday,9 July 2012               
Illovo shareholders will not be permitted to dematerialise/rematerialise their  
shares between Monday, 2 July 2012 and Friday, 6 July 2012, both days inclusive.
Relative to this Distribution, the directors have confirmed that the Company    
will satisfy the solvency and liquidity test immediately after completing the   
Distribution.                                                                   
For income tax purposes, shareholders are advised that the Distribution will be 
paid out of qualifying contributed tax capital as contemplated in the definition
of "contributed tax capital" in section 1 of the Income Tax Act, 1962, and as it
will be regarded as a return of capital, consideration should be given to the   
potential capital gains tax consequences. Illovo shareholders are, therefore,   
advised to consult their tax advisors with regard to how they may be impacted by
the Distribution.                                                               
On behalf of the Board                                                          
J A Kunst                                                                       
Company Secretary                                                               
Mount Edgecombe                                                                 
28 May 2012                                                                     
Sponsor:                                                                        
J.P. Morgan Equities                                                            
Date: 28/05/2012 07:07:01 Supplied by www.sharenet.co.za                     
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