AFRICAN OXYGEN LIMITED - Business update

Business update

AFRICAN OXYGEN LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1927/000089/06)
JSE code: AFX
NSX code: AOX
ISIN: ZAE000067120
("Afrox" or "the company")


BUSINESS UPDATE

Afrox shareholders (“Shareholders”) are advised that following the business review provided to
Shareholders in the interim financial results released on SENS on 21 August 2014, Afrox has
initiated a program of cost reduction aimed at improving its profitability.

This program has been initiated due to prevailing depressed market conditions which have led
to volume erosion. It is expected that these market conditions will remain in the medium term.
Accordingly the company needs to significantly reduce its fixed cost base to ensure an
acceptable level of trading performance in the future.

In the execution of this program, the company will explore different options to reduce its fixed
cost base over the short and medium term. These options include inter alia the:
    - reduction of overheads;
    - streamlining of management; and
    - review of the geographic footprint, distribution network, the business and product
      portfolios

The company is fully committed to these improvement initiatives; however it sincerely regrets
the material impact on employees that these initiatives are likely to have. All reasonable options
to mitigate the impact of these initiatives on our employees will be considered during the
execution of this program.

Further details of the cost management program will be provided during January 2015.


Johannesburg
28 November 2014

Sponsor
One Capital

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