TELEMASTERS HOLDINGS LIMITED - Litigation Against Huge Group Limited

Litigation Against Huge Group Limited

TELEMASTERS HOLDINGS LIMITED
(Registration Number: 2006/015734/06)
JSE Code: TLM ISIN: ZAE 000093324
(“Telemasters” or “the Company”)


LITIGATION AGAINST HUGE GROUP LIMITED
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Shareholders are referred to the Litigation disclosure contained in the Company’s results announcement for
the 3 and 9 month periods ended 31 March 2014.

It has come to the attention of the TeleMasters board of directors that there is false information in the market
to the effect that the arbitration against Huge Group Limited (“Huge Group”) had gone against TeleMasters
and that TeleMasters had accordingly failed to prove its claim against Huge Group pertaining to outstanding
receivables to the value of R4.3 million.

The TeleMasters board is of the opinion that it is important that the correct facts regarding this matter are
placed in the market as it appears that Huge Group seems intent on maligning TeleMasters’ good name, both
through public platforms such as SENS and through the wider telecommunications brokers’ network. The
board accordingly advises as follows:
    - TeleMasters referred its claim against Huge Group for arbitration in May 2013;
    - Huge Group filed its statement of defence, in which it admitted to a portion of the TeleMasters claim
      in the amount or R1.7 million and filed a counterclaim of R4.391 million (“counterclaim”), on
      12 June 2014, two weeks after using the public platform provided by SENS to imply that
      TeleMasters’ overcharges its clients and that Huge Group accordingly had an indisputable
      counterclaim against TeleMasters in the amount of R6.025 million. In this regard, the TeleMasters
      board has laid a formal complaint with the JSE against Huge Group as it is of the opinion that the
      making of such an unsubstantiated allegations on the SENS platform is a deliberate attempt to harm
      the good name of a competitor and an abuse of the SENS system;
    - TeleMasters is in the process of preparing its statement of defence to Huge Group’s counterclaim
      and once this has been filed, a date and time for the arbitration proceedings will then be set by the
      arbitrator;
    - TeleMasters shareholders will be advised of the outcome of the arbitration as soon as the arbitrator
      has provided the parties with his written award, which is expected to be within 60 calendar days of
      the completion of the hearing.

As previously disclosed, the amount claimed from Huge Group is adequately secured through a cession of 10
million Huge Group shares and the board is accordingly of the opinion that there is no need for shareholders
to exercise caution when dealing in TeleMasters securities.

7 July 2014

Designated Advisor
Arcay Moela Sponsors Proprietary Limited

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