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COMPULSORY ACQUISITION OF THE REMAINING JOHNNIC SHARES AND THE SUSPENSION OF

1.   Compulsory acquisition and payment of consideration  
HCI  and  Johnnic  shareholders  are  referred  to  the  announcement  dated   Wednesday, 23 July 2008 pursuant to which announcement the closing  date  in   respect of the offer by Mercanto Investments (Proprietary) Limited, a wholly-  owned  subsidiary of HCI (“Mercanto”) to the shareholders  of  Johnnic  (the   “offer”)  was made known (the “closing date”) and to the circular posted  on   Monday,  21  July  2008 which sets out the terms of the  offer  (the  “offer   circular”).  Johnnic shareholders are referred to the circular posted  on  4   August  2008,  which incorporates a notice by Mercanto in terms  of  section   440K  of the Companies Act, No. 61 of 1973, as amended (the “Companies Act”)   (the “440K circular”).                                                         Mercanto  confirms  that it will, in accordance with  section  440K  of  the   Companies  Act, compulsorily acquire those Johnnic ordinary shares (“Johnnic   shares”)  not  already held by HCI and its subsidiaries and  in  respect  of   which  the  offer is not accepted prior to the closing date (the  “remaining   Johnnic  shares”)  from the holders of such shares (the  “remaining  Johnnic   shareholders”), for the cash consideration of R16.75 per Johnnic share  held   (the “cash consideration”).                                                    Johnnic  shareholders who accept the offer prior to the  closing  date  will   still have the option to elect either the cash consideration or the combined   share and partial cash consideration as set out in the offer circular.         Johnnic shareholders whose Johnnic shares will be compulsorily acquired  are   referred to the 440K circular for details of settlement in respect of  their   Johnnic shares.                                                                2.   Suspension of the listing of Johnnic on the JSE                           The  listing of Johnnic shares will be suspended on the JSE with effect from   the  commencement  of  trade on the JSE Limited (the “JSE”)  on  Tuesday,  5   August 2008.                                                                   The listing of Johnnic shares on the JSE will be terminated with effect from   the  commencement of trade on the JSE on Thursday, 25 September 2008, unless   an  application is made to the High Court of South Africa (the  “Court”)  to   prevent  the compulsory acquisition of the remaining Johnnic shares and  the   Court  orders  that Mercanto shall not be entitled to invoke the  compulsory   acquisition of the remaining Johnnic shares or the Court imposes  conditions   or  terms which are different from those in the offer circular read together   with the 440K circular.                                                        3.   Salient dates and times                                                   The  salient dates and times relating to the implementation of section  440K   of the Companies Act by Mercanto are set out in the table below:                                                                                        2008   Notice given in terms of section 440K(1) of                   Monday, 4 August  the Companies Act on                                                            Listing of Johnnic shares suspended on the                   Tuesday, 5 August  JSE with effect from the commencement of                                        trade on                                                                        Last day to trade in order for Johnnic                        Friday, 8 August  shareholders to participate in the offer                                        Johnnic shares trade ex the right to                         Monday, 11 August  participate in the offer                                                        Offer consideration settlement date in                       Monday, 11 August  respect of firm acceptances of the offer                                        received before 12:00 on Friday, 8 August                                       2008                                                                            Record date on which Johnnic shareholders                    Friday, 15 August  must be recorded in the register in order to                                    participate in the offer                                                        Closing date of the offer at 12:00 on                        Friday, 15 August  Offer consideration settlement date in                       Monday, 18 August  respect of firm acceptances of the offer                                        received before 12:00 on Friday, 15 August                                      2008                                                                            Last day to apply to the Court in terms of                Monday, 15 September  section 440K(1) of the Companies Act                                            Compulsory acquisition of the Johnnic shares             Tuesday, 16 September  held by the remaining Johnnic shareholders                                      who have not accepted the offer contained in                                    the offer circular becomes effective at the                                     commencement of business on                                                     Date of payment of the cash consideration        Within seven calendar days of  to:                                             the later of the expiry of the  (i)  Johnnic in respect of Johnnic             notice or the dismissal of any        certificated shareholders; and          application to the Court made in   (ii) dematerialised Johnnic shareholders`      terms of section 440K(1) of the  accounts                                            Companies Act (or if not a  who have not accepted the offer contained     business day, the next business   in the offer circular                                                    day)   Termination of the listing of Johnnic shares                                    on the JSE from the commencement of trade on            Thursday, 25 September  *                                                                               The above dates and times are subject to amendment, subject to prior written   approval  from  the  SRP  being obtained, at the discretion  of  HCI  and/or   Johnnic.  Any such amendment will be released on SENS and published  in  the   South African press.                                                           * The date of the termination of the listing of Johnnic shares on the JSE in   the 440K circular is Wednesday, 24 September 2008, however since this is not   a business day, the termination date will be Thursday, 25 September 2008.