Updated trading statement: six months ended 31 December 2015 DISCOVERY LIMITED (Incorporated in the Republic of South Africa) (Registration number: 1999/007789/06) ISIN: ZAE000022331 Share Code: DSY ("Discovery" or "the Company”) UPDATED TRADING STATEMENT: SIX MONTHS ENDED 31 DECEMBER 2015 Shareholders are advised of the following updated guidance for the six months ended 31 December 2015 (“current period”): December December 2014 2014 Previously Restated* reported Guidance for the current period Expected range Expected (cents) (cents) increase/ range (decrease) (%) (cents) Normalised headline earnings per 345.0 335.9 0% to 5% 335.9 to share - undiluted 352.7 Headline earnings per share - 602.6 586.6 (45%) to (55%) 322.6 to undiluted 264.0 Earnings per share - basic 608.7 592.6 (45%) to (55%) 325.9 to 266.7 *Restated for the bonus element of the rights issue on 7 April 2015 Normalised headline earnings (which management believe is the most relevant indicator of business performance) is expected to increase by between 5% and 10% in the current period. This is lower than the Company’s historic growth in normalised headline earnings due to: i. An increased investment in new initiatives, including the recently awarded Bankmed medical scheme administration and managed care contract, the expansion of the business model into banking and increased costs arising from growth in Ping An Health and other International Partner Markets; and ii. Higher than expected costs associated with moving VitalityHealth in the UK onto its own system infrastructure. Normalised headline earnings per share for the current period is impacted by the increase in total shares in issue, following implementation of the Rights Issue in April 2015. Headline earnings per share and basic earnings per share for the prior period were positively impacted by the once-off accounting treatment resulting from the lapsing of the put options Prudential held in respect of its interest in the UK joint venture – this was due to Discovery’s purchase of the Prudential’s remaining 25% of the joint venture in November 2014. As this once-off increase in profits occurred during the Company’s 2015 financial year, all results announcements relating to the 2015 financial year will be affected for comparative purposes, as previously advised in the results announcement for the year ended 30 June 2015 released on SENS on 10 September 2015. Discovery’s results for the current period are due to be released on SENS on 25 February 2016. The financial information on which this trading statement is based has not been reviewed and reported on by the Company’s external auditors. Sandton 17 February 2016 Sponsor RAND MERCHANT BANK (A division of FirstRand Bank Limited) Date: 17/02/2016 09:22:00 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.