DISCOVERY HOLDINGS LIMITED - Trading Statement

Trading Statement

DISCOVERY HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1999/007789/06)
ISIN: ZAE000022331
Share Code: DSY
("Discovery" or "the Company")

TRADING STATEMENT

Discovery is currently finalising its results for the year ended 30
June 2012 (“current period”), which will be released on SENS on or
about 5 September 2012.

In the year ended 30 June 2011 (“prior period”), transactions
resulted in once-off accounting impacts in Discovery’s results:
Discovery acquired Standard Life Healthcare, increased its
shareholding in PruHealth and PruProtect from 50% to 75%, and
recaptured reinsurance in PruHealth. Discovery has continued, as in
prior periods, to focus on the change of Normalised Headline Earnings
that excludes these once-off accounting impacts. Management is of the
view that this best represents the underlying operating performance.

Normalised Profit before tax is expected to be between 15% and 25%
higher than that of the prior period. Discovery did not recognise a
deferred tax asset on the losses of the new start up operations,
notably Discovery Insure, in the current period. As a result,
Normalised Headline Earnings per share is expected to be between 10%
and 20% higher than that of the prior period.

As a result of the once-off accounting impacts described above, the
prior period Headline Earnings and Earnings were abnormally impacted
and should not be used as a basis for direct comparison to the
current period’s results. Notwithstanding this, shareholders are
advised that Headline Earnings per share is expected to be between
25% and 35% higher than that of the prior period, whilst Earnings per
share is expected to be between 10% and 20% lower than the prior
period.

The financial information on which this trading statement is based
has not been reviewed and reported on by the Company`s external
auditors.
Sandton
22 August 2012

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

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