Trading statement and cautionary announcement LITHA HEALTHCARE GROUP LIMITED (Incorporated in the Republic of South Africa) (Registration number 2006/006371/06) Share code: LHG ISIN: ZAE000144671 (”Litha”) TRADING STATEMENT AND CAUTIONARY ANNOUNCEMENT Litha is currently finalising its results for the six months ended 30 June 2014 (“Period”). Shareholders are advised that earnings per share (“EPS”) and headline earnings per share (“HEPS”) are expected to be between 100% and 120% lower than those of the comparative six month period ended 30 June 2013 (“Comparative Period”). The decrease over the Period is primarily attributable to the following factors: - once-off restructuring costs of R10,5 million; and - foreign exchange losses of R9,2 million (gain of R11,5 million in the Comparative Period). As previously announced, Litha implemented a cost cutting and management restructure program to refocus its operations and has begun to realise certain benefits during the first half of 2014. As a result, EPS and HEPS are expected to improve by between 80% and 100% when compared to EPS and HEPS for the six month period ended 31 December 2013*. Earnings Before Interest, Tax, Depreciation and Amortisation (“EBITDA”) EBITDA is expected to be between 0% and 20% lower than the Comparative Period, and between 40% and 60% higher when compared to the preceding six months ended 31 December 2013*. The increase in comparison to the second half of 2013 was primarily due to the realisation of certain benefits from the cost reduction and restructure program implemented during the first half of 2014. Litha calculates EBITDA as earnings before interest income/expense, other expense/income, tax, amortisation, depreciation, foreign exchange gain/losses, income/loss from joint venture and equity accounted investments and unusual items, such as write-downs and gains/losses on investments. EBITDA is calculated and presented consistently from period to period. The financial information on which this trading statement is based has not been reviewed and reported on by Litha’s external auditors. Litha’s interim results for the Period are expected to be released on SENS on or about 26 September 2014. * EPS, HEPS and EBITDA for the six month period ended 31 December 2013 are calculated by subtracting the figures contained in the unaudited condensed consolidated results for the 6 months ended 30 June 2013 (as previously disclosed on SENS on 14 August 2013) from the figures contained in the audited financial statements for the year ended 31 December 2013. CAUTIONARY ANNOUNCEMENT Shareholders of Litha (“Shareholders”) are advised that Litha has entered into negotiations, which if successfully concluded, may have a material effect on the price of Litha’s securities. Accordingly, Shareholders are advised to exercise caution when dealing in the Litha’s securities until a full announcement is made. Midrand 18 August 2014 Sponsor One Capital Date: 18/08/2014 07:05:00 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.