Changes in BEE financing arrangements HUDACO INDUSTRIES LIMITED (Incorporated in the Republic of South Africa) (Registration number 1985/004617/06) Share code: HDC & ISIN: ZAE000003273 (“Hudaco” or “the company”) CHANGES IN BEE FINANCING ARRANGEMENTS In a business update released on 12 February 2013, the company advised that a communication was received from SARS regarding Hudaco’s BEE transaction. The communication referred to a number of other arrangements that were apparently connected to the BEE transaction, ascertained by SARS from third parties and about which Hudaco had no previous knowledge. In the light of this information, changes in tax legislation and the fact that SARS had issued revised assessments to Barbara Road Investments Proprietary Limited (“BRI”), a subsidiary of Hudaco, BRI has exercised its right to request Cadiz to gross up the dividend on the Cadiz preference shares held by BRI (“the preference shares”). In response thereto, Cadiz has exercised its right to redeem the preference shares instead of grossing up the preference dividend. As a result of the redemption of the preference shares, Morgan Stanley, the existing funder of the BEE transaction, exercised its option to put to BRI the debenture issued by Hudaco Trading Proprietary Limited (“Hudaco Trading”). The effect of the restructuring described above, which is effective from 28 February 2013, is that the BEE funding arrangements that were intended to be financed externally until August 2017 are now financed internally by the Hudaco group. As a result of the restructuring: the group statement of financial position will no longer reflect a preference share investment of R2 181m or a subordinated debenture liability of R2 181m; the group statement of comprehensive income will no longer reflect preference dividends received of R201m per annum or debenture interest paid of R234m per annum; basic earnings and headline earnings will decrease by approximately R33m or 103 cents per share per annum; for the financial year ending 30 November 2013, the effect on basic and headline earnings per share is expected to be 77 cents; and the BEE shareholders will continue to hold their shares in Hudaco Trading and the BEE credentials of all entities in the Hudaco group will remain intact. Shareholders are advised that the above information has not been reviewed or reported on by the company’s auditors. Johannesburg 28 February 2013 Sponsor Nedbank Capital Date: 28/02/2013 05:15:00 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.