GCR Downgrades Real People's Ratings Real People Investment Holdings Limited (Incorporated in the Republic of South Africa) (Registration No. 1999/020093/06) Bond Issuer Code: BIRP (“Real People” or “Group”) GCR DOWNGRADES REAL PEOPLE’S RATINGS Real People announces that Global Credit Ratings(“GCR”) has, on 7 October 2014, downgraded Real People’s national scale issuer ratings to BB+(ZA)from BBB(ZA) in the long-term, and to B(ZA) from A2 (ZA) in the short term. GCR has also downgraded Real People’s international scale ratings to BB from BB+. A negative outlook has been accorded to all ratings. According to GCR, the downgrade is a reflection of their expectation of further asset quality deterioration, considering the difficult operating environment in which the Group finds itself, which may place additional pressure on Real People’s profitability and capital levels. GCR have also considered Real People’s ability to raise funding in a market where sentiment remains negative towards unsecured lenders. According to GCR, despite the Group’s current efforts in raising additional qualifying capital and its ability to access offshore markets, its funding constraints may lead to a contraction in Real People’s balance sheet. GCR have stated that the rationale for placing Real People on negative outlook is driven by a potential further deterioration in the macro-economic environment and Real People’s ability to absorb any further losses. Further rating action will also be dependant on the Group’s ability to successfully raise additional qualifying capital and ease funding pressures. The GCR press release can be found on Real People’s website (www.realpeoplegroup.co.za). 7 October 2014 Debt Sponsor Rand Merchant Bank (A division of FirstRand Bank Limited) Date: 07/10/2014 04:16:00 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.