Trading statement: Year ended 30 June 2015 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: YEAR ENDED 30 JUNE 2015 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 year ended 30 June 2015 (“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 unaudited interim results announcement on the Stock Exchange News Service ("SENS") dated 24 February 2015 which advised that, Discovery’s acquisition of the remaining 25% issued share capital of Prudential Health Holdings Limited, the holding company of the PruHealth and PruProtect joint venture, from Prudential Assurance Company ("Prudential"), extinguished the put options Prudential held in respect of its interest in the joint venture. The accounting treatment of this has an effect on earnings per share and headline earnings per share, but does not impact normalised headline earnings, which the Company views as an appropriate measure of performance and best representing underlying performance. Accordingly shareholders are advised that guidance for the current period is as follows: June 2014 June 2014 Previously Restated reported Guidance for the current period (cents) (cents) increase (%) Range (cents) Normalised headline earnings per share - 611.3 594.8 10 to 20 654.3 to 713.8 undiluted Headline earnings per share- undiluted 542.0 527.4 60 to 70 843.8 to 896.6 Earnings per share- basic 574.2 558.7 60 to 70 893.9 to 949.8 Shareholders are further advised that the Rights Issue announced on SENS on 7 April 2015, has resulted in an increase in the total shares in issue. In terms of International Accounting Standards (IAS33: Earnings per share), the weighted average number of shares for the current and prior period is adjusted by the bonus element of the Rights Issue. This has resulted in the requirement to restate the normalised, headline and earnings per share results for the year ended 30 June 2014.The following number of shares have been used in the calculation of per share information: June 2015 June 2014 Restated Weighted number of shares in issue (000's) 598 946 581 123 Diluted weighted number of shares (000's) 607 290 595 699 Discovery’s results for the current period are due to be released on SENS on 10 September 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 27 August 2015 Sponsor RAND MERCHANT BANK (A division of FirstRand Bank Limited) Date: 27/08/2015 04:05:00 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.