Announcement relating to a small related party transaction Famous Brands Limited (Incorporated in the Republic of South Africa) (Registration number 1969/004875/06) Share code: FBR ISIN code: ZAE000053328 (“Famous Brands” or “the Company” or “the Group”) ANNOUNCEMENT RELATING TO A SMALL RELATED PARTY TRANSACTION 1. Introduction, rationale and salient terms Shareholders of Famous Brands (“Shareholders”) are advised that Famous Brands Management Company Proprietary Limited (a wholly owned subsidiary of Famous Brands) (“the Lessee”) has entered into a lease agreement (“the Lease”) with Steers Properties Proprietary Limited (“Steers Properties”), represented by Mr John Halamandres (a director of Famous Brands), in respect of Erf. 664 Halfway House Extension 57 Township and Portion 561 of the Farm Waterval No. 5I.R situated at 478 James Crescent, Midrand 1685 (“the Premises”). The rental payable for the Lease, which will commence on 1 October 2019 for a period of 5 years (“Lease Period”), will be R1 450 000.00 per month (excluding Value Added Tax) (“Rental Amount”), payable monthly in advance from 1 October 2019 to 31 September 2020 with an escalation of 7.5% per annum. The Lessee has an option to renew the Lease for a further five years, at the end of the Lease Period. Famous Brands is Africa’s largest branded food services franchisor. The Company’s integrated supply chain consists of Manufacturing and Logistics operations which support the Brand business in South Africa and selected markets in the rest of Africa. The Premises remains a key part of the Group’s manufacturing and logistics operations. The Lease is not subject to the fulfilment of any conditions precedent. 2. Related party considerations The JSE Limited (“JSE”) has ruled that the Lease will be deemed to be a related party transaction in terms of the JSE Listings Requirements as a consequence of Mr Halamandres being a director of Famous Brands and Steers Properties and furthermore as a result of Messrs Johnny Halamandres, Panagiotis Halamandaris, Theofanis Halamandaris and Periklis Halamandaris (also representing Steers Properties) collectively owning more than 20% of the shares in Famous Brands. Based on the aggregated Rental Amount for the Lease Period of R101,066,003.67, the Lease will be deemed a small related party transaction in terms of Section 10.7 of the JSE Listings Requirements. The board of directors of Famous Brands (“the Board”) is required to provide the JSE with written confirmation from an independent professional expert confirming that the terms of the Lease are fair insofar as Shareholders are concerned. BDO Corporate Finance Proprietary Limited (“BDO Corporate Finance”) has been appointed as the independent professional expert by the Board and provided the Board with a fairness opinion with regard to the Lease (“Fairness Opinion”) in which they have advised the Board that they believe that the terms of the Lease are fair to Shareholders. The Fairness Opinion will lie open for inspection at the registered office of Famous Brands being 478 James Crescent, Midrand, Gauteng for a period of 28 days from the date of this announcement. Midrand 7 August 2019 Sponsor The Standard Bank of South Africa Limited Independent Expert BDO Corporate Finance Date: 07/08/2019 04:00:00 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.