Update - Change in Strategic Vendor Partnership Status ISA Holdings Limited Incorporated in the Republic of South Africa (Registration number 1998/009608/06) Share code: ISA ISIN: ZAE000067344 (“ISA” or “the Company”) UPDATE - CHANGE IN STRATEGIC VENDOR PARTNERSHIP STATUS Shareholders are referred to the announcement of 28 November 2019, wherein shareholders were advised that one of ISA’s strategic vendor partners, Check Point Software Technologies Limited ("Check Point"), had decided to change ISA's partner status to an entry-level reseller. This demotion, effectively downgrading ISA’s position in Check Point’s reseller program from the highest tier available (“4-Star Elite Partner”) to the lowest tier available (“Not-In-Program Reseller”) is likely to have a substantial effect on the business due to the summary reduction in Check Point reseller benefits associated with this demotion, such as unfavourable reseller discounts, the removal of all cooperative marketing support and the limited access to Check Point’s advanced technical escalation structures. In effect, for as long as ISA remains at this entry-level reseller tier, it is unlikely that they will be able to win major new Check Point based projects, nor retain their existing customers who have a committed investment in Check Point technologies, which accounted for as much as 90% of ISA’s turnover in the last financial year ended 28 February 2019. Despite several discussions being held between the parties since the demotion late last year, it is unfortunate that no meaningful progress has been made towards mending the relationship between themselves thus far. Accordingly, and while ISA continues to search for ways of working with Check Point in a mutually beneficial manner into the future, the Company will be increasing its focus on its stated plans of onboarding other emerging ‘next generation’ technologies and brands that are required by their customers to effectively address the rapidly evolving information security threat landscape. Johannesburg 16 January 2020 Designated Adviser Merchantec Capital Date: 16-01-2020 03:17:00 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.