AYO TECHNOLOGY SOLUTIONS LIMITED - Response to media article

Response to media article

AYO TECHNOLOGY SOLUTIONS LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 1996/014461/06
JSE share code: AYO
ISIN: ZAE000252441
("AYO" or "the Company")

Response to media article

Shareholders are referred to the article released by amaBhungane on 22
January 2020 (“the Article”) regarding the ICT Master Services Agreement
(“Agreement”) entered into between AYO and Sasol Limited (“Sasol”). AYO
wishes to provide additional information not included in the Article for the
benefit of its shareholders.

AYO previously disclosed to shareholders in its Reviewed Results for the
year ended 31 August 2019 released on sens on 20 December 2019 (“Reviewed
Results”) that a significant customer gave AYO six months’ notice purporting
to terminate the Agreement and that Ayo had disputed the right to cancel and
that AYO had invoked arbitrations provisions under the Agreement.

As the issue in dispute concerns the proper interpretation of the early
termination provision, AYO, as set out in the Reviewed Results, formally
declared a dispute under the Agreement. The contractual provision provides
for an internal mechanism for resolving the dispute failing which the dispute
must go to arbitration.         AYO committed itself to this process. However, on
13 December 2019, Sasol issued urgent proceedings out of the Western Cape
High   Court,   seeking   certain      interim   relief   against   Ayo,   pending    the
arbitration.    AYO   opposes    the   High   Court   application   on   procedural   and
substantive grounds.

Notwithstanding the dispute, AYO continues to render ICT services to Sasol
pending the finalisation of the arbitration and High Court proceedings. AYO
is committed to finding a mutually-acceptable solution with Sasol to the
matter. The outcome of the legal proceedings will be communicated in due
course.

Cape Town
22 January 2020

Joint Sponsor
Vunani Corporate Finance

Joint Sponsor
Merchantec Capital

Date: 22-01-2020 05:44:00
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