CLR/CLRP - Clover Industries Limited - Renewal of outsourcing services agreement

CLR/CLRP - Clover Industries Limited - Renewal of outsourcing services agreement
entered into between Clover S.A. Proprietary Limited ("Clover") and Eqstra      
Flexifleet Proprietary Limited ("Eqstra Flexifleet")                            
CLOVER INDUSTRIES LIMITED                                                       
(Incorporated in the Republic of South Africa)                                  
(Registration number 2003/030429/06)                                            
Ordinary Share code: CLR                                                        
ISIN: ZAE000152377                                                              
Preference Share Code: CLRP                                                     
ISIN: ZAE000152385                                                              
("the Company")                                                                 
RENEWAL OF OUTSOURCING SERVICES AGREEMENT ENTERED INTO BETWEEN CLOVER S.A.      
PROPRIETARY LIMITED ("CLOVER") AND EQSTRA FLEXIFLEET PROPRIETARY LIMITED        
("EQSTRA FLEXIFLEET")                                                           
Clover (a subsidiary of the Company) and Eqstra Flexifleet have decided to renew
their existing Outsourcing Service Agreement ("Agreement") for a substantial    
period of time. Clover has indicated its desire to reduce costs in the supply   
chain in order to provide more affordable products to its consumers, and this   
extended Agreement will enable both parties to benefit from these increased     
volumes over time. Eqstra Flexifleet has played a significant part in reducing  
Clover`s supply chain costs, and has bought into Clover`s long term vision of   
sustainable growth through affordable products. It is believed that the         
transaction will hold medium to long term benefits for both parties, however    
Clover will see some early financial benefits which it will use to curtail      
selling price increases by ploughing back some cost savings into its selling    
prices.                                                                         
ENQUIRIES                                                                       


Clover Industries Limited                     +27 (0) 11 471 1702               
Johann Vorster - Chief Executive              +27 (0) 82 462 0083               
Manie Roode - Deputy Chief Executive          +27 (0) 82 466 7848               
College Hill                                  +27 (0) 11 447 3030               
Frederic Cornet                               +27 (0) 83 307 8286               
Morne Reinders                                +27 (0) 82 815 1844               
Johannesburg                                                                    
5 June 2012                                                                     
Sponsor                                                                         
RAND MERCHANT BANK (a division of FirstRand Bank Limited)                       
Date: 05/06/2012 11:00:01 Supplied by www.sharenet.co.za                     
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