Trading statement: six months ended 31 December 2014 DISCOVERY LIMITED (Incorporated in the Republic of South Africa) (Registration number: 1999/007789/06) ISIN: ZAE000022331 Share Code: DSY ("Discovery" or "the Company" or "the Group") TRADING STATEMENT: SIX MONTHS ENDED 31 DECEMBER 2014 The following statement is made with reference to the requirements of paragraph 3.4(b) of the JSE Limited Listings Requirements, which requires an issuer to publish a trading statement as soon as it has a reasonable degree of certainty that earnings per share and / or headline earnings per share for the next reporting period will differ by at least 20% from that of the previous corresponding reporting period. Discovery is currently finalising its results for the six months ended 31 December 2014 ("current period"). Management is of the view that normalised headline earnings per share best represents the underlying operating performance of the Group. Shareholders are referred to the Stock Exchange News Service ("SENS") announcement of 19 November 2014 which advised that, following Discovery's acquisition of the remaining 25% issued share capital of Prudential Health Holdings Limited, the holding company of PruHealth and PruProtect joint venture, from Prudential Assurance Company ("Prudential"), the accounting of the puttable non-controlling interest in respect of Prudential's put option falls away, and the difference between the current value and the purchase price of the 25% will be released to the income statement for the six months ended 31 December 2014. The accounting effects of the release of the put option liability impacts positively on earnings per share and headline earnings per share and does not have any impact on normalised earnings per share or normalised headline earnings per share. Shareholders are advised that guidance for the current period is as follows: Actual December 2013 Guidance for the current period (cents) % increase Range (cents) Normalised headline earnings per share - 296.2 10% to 20% 325.8 to 355.4 undiluted Headline earnings per share- undiluted 301.4 95% to 105% 587.7 to 617.9 Earnings per share- basic 307.7 95% to 105% 600.0 to 630.8 Discovery's results for the current period are due to be released on SENS on 24 February 2015. The financial information on which this trading statement is based has not been reviewed and reported on by the Company's external auditors. Sandton 18 February 2015 Sponsor RAND MERCHANT BANK (A division of FirstRand Bank Limited) Date: 18/02/2015 02:57:00 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.