TELKOM SA SOC LIMITED - Telkom reaches settlement in the SAVA matter

Telkom reaches settlement in the SAVA matter

Telkom SA SOC Limited
(Registration number 1991/005476/30)
JSE share code: TKG
ISIN: ZAE000044897
("Telkom" or the "Company")

TELKOM REACHES SETTLEMENT IN THE SAVA MATTER

Telkom and the Competition Commission have been engaged in discussions aimed at
arriving at a settlement regarding Telkom's appeal and the Commission's cross-appeal
to the Competition Appeal Court. The appeal and cross-appeal respectively concern a
ruling delivered by the Competition Tribunal on 07 August 2012, relating to complaints
laid against Telkom by the South African Value Added Networks Services (SAVA) and
various other complainants.

On 15 March 2013, the parties reached agreement that, subject to confirmation by the
Competition Appeal Court, each party would withdraw its appeal and cross-appeal
respectively and each party would pay its own costs.

The withdrawal of the appeal and cross-appeal was approved by the Competition
Appeal Court (‘CAC’) on 12 April 2013 and the CAC’s confirmation was communicated
to Telkom on the 16 April 2013. Accordingly, Telkom will pay the fine that was
originally awarded by the Tribunal in the sum of R 449 million of which 50% is payable
within 6 months from date of the withdrawal, and the balance to be paid within 18
months of the said date of withdrawal. Provision was made for these amounts in the
company's reported results for the six months to 30 September 2012.

Pretoria
16 April 2013

Sponsor: The Standard Bank of South Africa Limited

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