Disposal of Nu Metro Cinemas, a Division of TMG, and Avusa Entertainment Investments (Pty) Limited TIMES MEDIA GROUP LIMITED (Incorporated in the Republic of South Africa) (Registration number 2008/009392/06) Ordinary Share Code: TMG Ordinary share ISIN: ZAE000169272 (“TMG” or “the Company”) DISPOSAL OF NU METRO CINEMAS, A DIVISION OF TMG, AND AVUSA ENTERTAINMENT INVESTMENTS (PTY) LIMITED 1. INTRODUCTION Shareholders are advised that the Company has concluded an agreement, in terms of which it has disposed of its Nu Metro Cinema division (“Nu Metro”) and its associated cinema advertising business Popcorn Cinema Advertising Sales which is the sole operating business of Avusa Entertainment Investments (Pty) Limited (“Popcorn Advertising”) to Subcocept (Pty) Limited (“Subcocept”) a purpose built company funded by private equity company, One Fifty Capital (“the Disposal”). One Fifty Capital is an independent private equity firm providing capital for small to medium start-up enterprises in the property, education, entertainment and gaming industries with offices in KwaZulu-Natal, South Africa and Nicosia, Cyprus. For more information, please log on to www.onefiftycapital.com 2. RATIONALE FOR THE DISPOSAL 2.1. As part of TMG’s turnaround strategy, it has specifically decided to exit non-core businesses identified within TMG. One such business is Nu Metro, which falls within the Company’s Entertainment division and which forms the subject matter of the Disposal. 2.2. Nu Metro is the 2nd largest cinema operator in Southern Africa and operates 17 cinema complexes with 162 screens across South Africa and this business represents approximately one third of the cinema market share in South Africa, claiming 4 of the top 10 screens by attendance. 2.3. Popcorn Advertising sells on-screen advertising space on behalf of Nu Metro as well as the major independent cinemas across South Africa, to media agencies and some clients directly. 3. DETAILS OF THE DISPOSAL 3.1. Purchase Consideration 3.1.1. TMG will dispose of 100% of Nu Metro and Popcorn Advertising for a purchase consideration of R75 000 000 (seventy five million rand) payable in cash. R50 million will be paid on the implementation on the transaction; R15 million on the first anniversary of the transaction and R10 million on the second anniversary of the transaction. 3.1.2. The proceeds of the Disposal will be used to reduce acquisition leverage with respect to future acquisitions more aligned to TMG’s core business. 3.2. Previous Cinema sales 3.2.1. As announced previously TMG has also sold the following Cinema assets: 3.2.1.1. 51% shareholding in Monte Cinemas (Pty) Limited to Tsogo Sun Casinos (Pty) Limited for R20 million cash; and 3.2.1.2. 50% shareholding in Three Groups Cinemas (Pty) Limited to Whitehorse Investments (Pty) Limited and Avalon Three Groups Investments (Pty) Limited for R18 million in cash. 3.2.2. Accordingly the total sale proceeds for the entire TMG cinema assets as described above amounts to R113 million. By order of the board 6 January 2014 Johannesburg Sponsor PSG Capital Date: 06/01/2014 09:05:00 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.