Voluntary announcement on the acquisition of intellectual property relating to Fixed Wireless Routers (FCRs) HUGE GROUP LIMITED (Registration number 2006/023587/06) Share code: HUG ISIN: ZAE000102042 (“Huge” or “the Group” or “the Company”) VOLUNTARY ANNOUNCEMENT ON THE ACQUISITION OF INTELLECTUAL PROPERTY RELATING TO FIXED WIRELESS ROUTERS (FCRs) Shareholders are referred to the CEO’s Report in the Integrated Report of the Company for the year ended 28 February 2014, in which one of the Group’s stated objectives is to reduce the cost of installing router equipment at its customers’ premises. Huge Telecom Proprietary Limited (Huge Telecom) provides a full outbound and inbound telephony service over a GSM last- mile, using fixed-cellular (or fixed-wireless) customer premises equipment. In simple terms, Huge Telecom installs wireless telephone lines based on the GSM standard. The advantage of this type of service is that it is simple, easy to install and allows for high (“first tier”) levels of reliability. Huge Telecom uses the networks of all the South African mobile network operators and therefore in aggregate has access to the most extensive cellular network coverage in South Africa, whilst making use of devices that are fixed cellular in nature, and is therefore able to offer an unrivalled reliable quality of service. At the end of its last financial year (28 February 2014) Huge Telecom had a base of 20 000 installed telephone lines (or connections) where the connection runs over a fixed cellular router. During the first five months of this financial year (up to 31 July 2014) Huge Telecom, through its Business Partners, sold in excess of 5 400 telephone lines and thus installed over 5 400 fixed cellular router channels. With the growth in connections that Huge Telecom is experiencing, it is becoming ever more important to reduce the cost of investment in fixed cellular customer premises equipment. At present Huge Telecom is spending between R1 million to R1.5 million a month in the purchase of fixed cellular routers. The Board of Directors is pleased to announce that Huge Software Proprietary Limited (a wholly owned subsidiary company of Huge) has acquired intellectual property which will enable it to manufacture a fixed cellular router at a significant discount to its current cost of purchasing similar equipment. Huge Software has signed an agreement with Mr Deon Marais to purchase the intellectual property that constitutes the SpiderCell FCR. The SpiderCell FCR was originally manufactured by DM Technologies Proprietary Limited. Furthermore there is agreement in principle between Huge Software and Deon Marais that a long term relationship is envisaged. It is likely that Deon will assist with engineering and further development, as well as production of the product family/families. Huge Software has also signed an agreement with Busiraks Proprietary Limited and Mr John Walker to purchase the intellectual property that constitutes the Xena FCR. Both the Xena and the SpiderCell are well respected brands of fixed cellular router that previously enjoyed significant market share. Unlike FCR units sourced from overseas suppliers, these devices are also completely locally designed, developed, and field tested, and are therefore absolutely compatible with the local South African GSM networks and protocols, as well as being fully ICASA compliant and certified, which will ensure complete reliability of operation and service. Johannesburg 18 August 2014 Designated advisor Arcay Moela Sponsors Proprietary Limited Date: 19/08/2014 07:05:00 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.