TOTAL CLIENT SERVICES LIMITED - Quarterly Progress Report

Quarterly Progress Report

TOTAL CLIENT SERVICES LIMITED
Incorporated in the Republic of South Africa
(Registration number 1998/025018/06)
Share code: TCS ISIN: ZAE000116208
(“TCS” or “the Company”)

QUARTERLY PROGRESS REPORT

Shareholders are referred to the cautionary announcement released on SENS on 22 November 2013, the
subsequent renewal of cautionary announcements, the last of which was dated 20 May 2015 and, in terms of
paragraph 1.10(c) of the JSE Listings Requirements relating to the continuing obligations of suspended
companies, are provided with a quarterly progress report on the current state of affairs of the Company.

The Company continues to pursue various internal and external opportunities and initiatives in line with the
restructuring and rebuilding phase. These include the reduction of overhead and infrastructure costs, the exit
from non-profitable projects, the pursuit of new lucrative contracts and the increased sales of cameras and
equipment.

Following the completion of the annual financial results for the 2014 financial year, the Reviewed Condensed
Consolidated Financial Statements for the year ended 28 February 2014 were released on SENS on
28 November 2014. However, the completion and release of the 2014 annual report, as well as the August
2014 interim results and the provisional 2015 year-end results have been delayed and are currently receiving
urgent attention. The reasons for these delays are largely related to the scope of the technical review
process by the auditors and the limited internal resources to support this process.

The Company continues to work closely with the auditors to finalise these outstanding financial matters, and
expects to have them completed and released by no later than the end of August 2015.

The next formal meeting of the members of the Board of TCS (“the Board”) will take place before 20 July
2015. The scheduling of the Annual General Meeting (“AGM”) will be finalised at such meeting, and the
intention is to have the AGM concluded by no later than the end of August 2015.

In addition to the Polokwane contract (secured in December 2014) and the project with the Namibian
National Police (secured in January 2015), the Company has also secured three other significant new
contracts, namely Tlokwe (Potchefstroom) from 1 June 2015, Matlosana (Klerksdorp) from 1 June 2015 and
Rustenburg from 1 July 2015. These areas are traditionally strong performers and the expected income will
form the basis of the operations going forward. Successful implementation and roll-out is of great importance
and the Company is well prepared to deliver in this regard.

The launch of the electronic laser mobile camera in early 2015 has been well received in the market and
further emphasis will be placed on equipment sales over the coming months. These cameras were already
introduced in Polokwane and Tlokwe, and are proving to be very effective.

The focus for TCS will now be on increasing and stabilising income from the successful implementation of
the new projects and achieving optimum production levels in all contracts. This, together with certain final
restructuring and cost-saving initiatives, will see the Company stabilise over the next 3-6 months.

Centurion
30 June 2015

Designated Adviser
Merchantec Capital

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