FONEWORX HOLDINGS LIMITED - Voluntary Announcement Acquisition of a 35% Stake In BMI Research Proprietary Limited

Voluntary Announcement – Acquisition of a 35% Stake In BMI Research Proprietary Limited

FONEWORX HOLDINGS LIMITED
Incorporated in the Republic of South Africa
(Registration number 1997/010640/06)
Share code: FWX ISIN: ZAE000086237
(“FoneWorx” or “the Company”)


VOLUNTARY ANNOUNCEMENT – ACQUISITION OF A 35% STAKE IN BMI RESEARCH
PROPRIETARY LIMITED


1.   INTRODUCTION

Shareholders are referred to the unaudited consolidated interim results for the six months ended
31 December 2013, wherein the board of directors of FoneWorx (“the Board”) alluded to exciting avenues
for potential acquisitions of companies complementing the underlying business process commencing with
the launch of Knowledge 350 degrees, read with the voluntary announcement dated 25 May 2014 relating
to the acquisition of Living Facts.

Shareholders are advised that the Company has acquired a 35% stake in BMI Research Proprietary
Limited (“BMI”) (“Acquisition”). BMI was the result of the 2008 merger of BMI Foodpack and Adcheck
Research. BMI has more than 30 years of experience in quantitative and qualitative consumer and
industrial research.

2.   RATIONALE FOR THE ACQUISITION

BMI is a research house specialising in consumer and industrial research in various sectors, including the
retail sector/market. BMI has experience across a wide range of methodologies and markets.

BMI provides research into a number of sectors and industries including Apparel, Automotive, Consumer
Packaged Goods (CPG), Financial, Foodservices, Information Technology & Communication,
Manufacturing, Packaging, Raw Materials, Retail and Wholesale.

BMI offers a range of services that includes annual quantifications, tracking reports, in store observation
services and liquor in store pricing, print ad tracking, commissioned research and consumer research.

The research undertaken by BMI allows its customers to view trends and developments in their area of
focus and business.

The Acquisition will complement and enhance the strategic objectives of FoneWorx and will contribute
tremendous value to the Company’s Knowledge 350 degrees consultancy by assisting clients in better
understanding customer needs, perceptions and realities.

Knowledge 350 degrees, which incorporates both Organisations and Individuals methodologies of
collecting, storing and using information, forms an important strategic direction for the Company
particularly in light of the Protection of Personal Information Act, 2013 (Act 4 of 2013). This strategy will
be driven using a 15 step roadmap incorporating strategic consulting and the implementation of technical
solutions to execute the chosen business process outcomes. BMI will leverage an important element of
Knowledge 350 degrees which assists companies to “self-create” intangible assets, through its roadmap
of tracking data through to knowledge.

The Company will continue to look at other similar acquisitions in the development of this new strategic
direction and the accumulation of the necessary skill sets.

3.   CLASSIFICATION OF THE ACQUISITION

The Acquisition, due to its size, falls below the transaction thresholds as set out in the Listings
Requirements of JSE Limited and therefore does not require any formal disclosure. However, the Board
would like to advise shareholders of this strategic acquisition.
Johannesburg
31 July 2014

Designated Adviser
Merchantec Capital

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