Competition Commission ruling on Proposed merger between Italtile Limited and Ceramic Industries Proprietary Limited ITALTILE LIMITED RALLEN PROPRIETARY LIMITED (Incorporated in the Republic (Incorporated in the Republic of South Africa) of South Africa) Registration number: Registration number: 1955/000558/06 1967/006775/07 Share code: ITE ISIN: ZAE000099123 (“Italtile” or “the Group”) (“Rallen”) Competition Commission ruling on Proposed merger between Italtile Limited (“Italtile”) and Ceramic Industries Proprietary Limited (“Ceramic”) ("the merging parties”). Italtile shareholders are referred to the “Binding Offer to Acquire Shares in Ceramic, Rights Offer declaration and Withdrawal of Cautionary Announcement” published on SENS on 20 July 2016 and the “Offer to Acquire Shares in Ceramic, Details of the Italtile Rights Offer and Renewal of Cautionary” announcement released on SENS on 26 April 2016. In terms of Italtile’s proposed merger with Ceramic, the Competition Commission ruled on 26 July 2016 that the transaction has been prohibited. The Boards of Italtile and Rallen (as the majority shareholder of Italtile and Ceramic) are strongly opposed to this ruling, as they believe that the Commission’s decision was based, inter alia, on incorrect information and an incorrect adjudication of control and consequently its findings are incorrect. In terms of Section 16(1)(a) of the Competition Act 89 of 1998, if the Competition Commission prohibits an intermediate merger, any party to the merger may request the Competition Tribunal to consider the prohibited merger, by written notice and in the prescribed form. Accordingly, Italtile will be preparing and filing a Request for Consideration with the Competition Tribunal. In the conviction that this matter will be reviewed and resolved appropriately, and since approval by the Competition authorities is only one of several conditions precedent, the acquisition process and timetable as communicated to date will continue as scheduled. Shareholders will be apprised of progress in this regard in due course. Johannesburg 28 July 2016 Sponsor Merchantec Capital Legal Advisor to Italtile Hogan Lovells (SA) Inc. Corporate and Legal Advisor to Rallen Rabin & Associates Proprietary Limited Date: 28/07/2016 05:05:00 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.