Tekkie Town Update Steinhoff Africa Retail Limited (Previously K2017221869 (South Africa) Proprietary Limited) (Incorporated in the Republic of South Africa) (Registration number: 2017/221869/06) Share Code: SRR ISIN: ZAE000247995 (“STAR” or the “Company”) TEKKIE TOWN UPDATE On Tuesday 25 June 2018, Bernard Mostert, the CEO of Tekkie Town, and other senior members of management, resigned with immediate effect. In response, STAR immediately deployed an interim management and support team from various other businesses within STAR, led by Riaan van Rooyen (currently the Operational Director at Ackermans) to stabilise operations and to ensure continued trading in Tekkie Town stores. The background to the events occurring at Tekkie Town, as reported on SENS by STAR on 4 June 2018, appear to arise from a claim lodged by the original founders and shareholders of Tekkie Town against STAR in respect of an earn-out agreement allegedly reached with Steinhoff International Holdings N.V. As previously reported, STAR maintains that it is not a party to any such earn out agreement and further confirms that it has received advice from senior counsel that there is no reasonable prospect of STAR being held liable in this regard. Tekkie Town is an important part of STAR, operating 368 stores within STAR’s total retail footprint of more than 5 100 stores and contributes approximately 3% to STAR’s consolidated annual revenue. More importantly, Tekkie Town currently employs almost 3 200 people whose livelihoods depend on the continued operation of the Tekkie Town business and STAR is determined to protect them. The interim management and support team has been successful in ensuring that trading in Tekkie Town stores continues normally. Sales performance to date has not been negatively impacted despite the exit of the previous senior management team and attempts to disrupt the business. In addition, contingency plans are in place to ensure that Tekkie Town continues to operate at full capacity. A notice of demand to remedy a breach was received from Braam van Huyssteen in respect of the Tekkie Town head office and distribution premises in George. STAR has contested this legally. STAR, as a responsible listed company representing strong organisational cultural values which have stood the test of time, will continue to focus on serving its millions of daily customers and its 46 000 employees. CEO Leon Lourens concluded: “Star’s trusted and iconic brands, such as Ackermans and PEP, are testament to its values and business ethics – a reputation which was built up over many years in Pepkor. We will stick steadfastly to these ethics and will not entertain any underhanded tactics from any quarter. STAR will continue to protect the interest of its shareholders and employees and will vigorously enforce its legal rights in this regard.” Parow 28 June 2018 Sponsor: PSG Capital Date: 28/06/2018 04:30:00 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.