CIPLA MEDPRO SOUTH AFRICA LIMITED - Cipla Medpro update on CEO suspension and termination of discussions

Cipla Medpro update on CEO suspension and termination of discussions

Cipla Medpro South Africa Limited
(Incorporated in the Republic of South Africa)
(Registration number 2002/018027/06)
Share code: CMP
ISIN: ZAE000128179
(“Cipla Medpro” or the "Company")



Cipla Medpro update on CEO suspension and termination of discussions

Shareholders are referred to the SENS announcement on 15 August 2012 advising that the Cipla
Medpro South Africa Limited Board (“the Board”) had resolved to suspend CEO Jerome Smith and
had launched a full investigation into serious allegations concerning Mr Smith. Shareholders are now
advised that a disciplinary hearing (“the Hearing”) has been convened for 6 and 7 September 2012
before an independent chairman, Advocate Pretorius SC. A formal and detailed list of charges was
put to Mr Smith on 27 August 2012 which will be the subject of the Hearing. If further charges emerge,
they will be added to the charge sheet. The Company will not be providing further details on these
charges at this time, so as not to prejudice the disciplinary process.


The Board reiterates that while the charges made against Mr Smith are serious in nature, they would
not have a financially material impact upon Cipla Medpro. The Board will update the market as and
when it is able to do so in its estimation without any danger of prejudicing the process.


Shareholders are also advised that Mr Smith brought an urgent application on Tuesday 28 August
2012 against the Company and its Board in the Western Cape High Court to, inter alia, have his
suspension lifted with immediate effect. Cipla Medpro opposed the urgent application and filed a
detailed affidavit. The matter was called in court this afternoon at which time Mr Smith withdrew his
application, tendering to pay the costs of Cipla Medpro and the members of the Board, including costs
of two counsel.


Cipla Medpro and the Board were advised by Edward Nathan Sonnenbergs Inc (“ENS”) with regard to
this application. ENS has been advising Cipla Medpro and continues to advise Cipla Medpro
regarding the suspension of the CEO and the Hearing. Cipla Medpro will be represented by ENS at
the Hearing.


Furthermore, shareholders are referred to the 29 August 2012 withdrawal of Cipla Medpro’s
cautionary announcement. The discussions referred to in this and previous cautionary
announcements (dated 9 May 2012, 20 June 2012 and 1 August 2012) (“the Discussions”) were, and
are still, governed by a non-disclosure agreement signed between the parties that prevents Cipla
Medpro from releasing further details. That is the reason why Cipla Medpro has not been able to and
continues not to be able to furnish shareholders with more details in that regard.
The Board wishes to confirm that the communication that was made at the results presentation on 16
August 2012 with regard to the Discussions was correct, in that at that stage they were still ongoing.
As a result of the interactions over the last two weeks the discussions were terminated. Cipla Medpro
notified shareholders as soon as possible in the circumstances.




Bellville
30 August 2012
Sponsor
Nedbank Capital

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