Trading statement Pinnacle Holdings Limited Registration number 1986/000334/06 Share Code: PNC ISIN: ZAE000184149 (“Pinnacle” or “the Group” or “the Company”) TRADING STATEMENT The trading statement is published in compliance with paragraph 3.4(b) of the JSE Listings Requirements. Revenue, Earnings per Share (“EPS”) and Headline Earnings per Share (“HEPS”) Shareholders are advised that the Company is reasonably certain that its interim results for the 6 months ended 31 December 2015 will reflect the following: 6 months to 6 months to 6 months to 31 December 2014 31 December 2015 31 December 2015 Actual Expected change Expected Values percentage Revenue R3,638 million +17% to +20% R4,250 to R4,350 million Headline earnings R125 million +16% to +20% R145 to R150 million EPS 78.2 cents +16% to +21% 91 to 95 cents HEPS 80.4 cents +13% to +18% 91 to 95 cents A. Revenue for the six months ended 31 December 2015 grew in a satisfactory manner with pleasing growth coming from our infrastructural products and new technologies. B. As previously highlighted to the market, gross margins have continued to be under pressure and, as a percentage of revenue, will be approximately 1.5% lower than the comparative period. This was brought about by competitive pressures and product mix as the group continues its progress into large technology projects which typically carry lower margins. C. Cost management was acceptable, with increased efficiencies resulting in operating expenses, as a percentage of revenue, decreasing by approximately 1.5% when measured against the prior period, to compensate for the drop in margin noted above. D. The increase in the investment in Datacentrix Holdings Ltd (“Datacentrix”), from 34.9% to 46% as at the end of December 2015, through the issue of shares in Pinnacle, has resulted in a small dilution in HEPS. The Board is confident, though, that the investment will continue to enhance returns in the future. As previously communicated to shareholders, subsequent to 31 December 2015, the investment in Datacentrix increased to 55.3% following the closure of the mandatory offer to shareholders. The above information has not been reviewed or reported on by the Company's auditors. The Company's unaudited interim financial results for the six months ended 31 December 2015 are expected to be published on SENS on or about 29 February 2016. Midrand 3 February 2016 Sponsor: Deloitte & Touche Sponsor Services (Pty) Ltd Date: 03/02/2016 01:14:00 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.