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) Date: 22/08/2012 02:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.