LEW01 - NCT Judgement Lewis Group Limited Incorporated in the Republic of South Africa Registration number: 2004/009817/06 JSE share code: LEW01 ISIN: ZAG000110222 ("the group") NCT JUDGEMENT Shareholders are advised that the National Consumer Tribunal (“NCT”) delivered its judgment and reasons in the following matter: THE NATIONAL CREDIT REGULATOR (“NCR”) / LEWIS STORES (PTY) LTD (“Lewis”) and MONARCH INSURANCE COMPANY LTD (“Monarch”) – CASE NO.: NCT/27651/2015/140 (P) NCA (“the judgment”) on 14 September 2016. In terms of the judgment, the NCT: 1. dismissed the NCR’s application against Monarch; 2. found that the investigation and referral of the complaints against Lewis by the NCR was valid; 3. found that the offering of loss of employment insurance by Lewis to pensioners or self- employed consumers was unreasonable and therefore constituted prohibited conduct under the National Credit Act (“NCA”); 4. found that the offering of disability insurance by Lewis to pensioners would be unreasonable, unless further enquiry and clarification was obtained and recorded, which makes it clear that such consumers requested such insurance cover; 5. found that the offering of disability insurance by Lewis to self-employed persons was not unreasonable; 6. found that there is no clear basis on which the unreasonableness of the disability and loss of employment insurance ties to a specific provision in Lewis’s credit agreements which has the effect of deceiving consumers; 7. found that the NCR did not submit any evidence of the way in which consumers were allegedly deceived by Lewis; 8. found that it is unable to make a finding that Lewis uses additional or supplementary agreements to circumvent the purposes of the NCA; and 9. ordered that an independent audit be done of all credit agreements entered into by Lewis since 2007, for purposes of determining whether any pensioners or self-employed consumers were sold loss of employment insurance and whether any pensioners were sold disability insurance. If so, Lewis is to reimburse such consumers with any premiums and any interest charged on their accounts as a result of such insurance premiums. Consumers who no longer have open accounts with Lewis are to be traced and reimbursed. The independent audit to be completed at Lewis’ cost within 120 days and the audit report is to be furnished to the NCR within 150 days. Thereafter the NCT will set the matter down for hearing on the quantum of the administrative penalty to be imposed. In this regard, we remind shareholders that Lewis has already carried out its own investigation in regard to loss of employment insurance sold to pensioners and self-employed consumers, and has to date reimbursed the premiums paid together with interest thereon, to more than 90% of such consumers. Lewis will be considering the judgment with its legal advisors for purposes of determining the next steps to be taken by it in this matter, and shareholders will be kept advised on developments. Cape Town 15 September 2016 Debt Sponsor: Absa Bank Limited (acting through its Corporate and Investment Bank division) Date: 15/09/2016 12:00:00 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.