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PROPOSED SPECIFIC REPURCHASE

Proposed specific repurchase 1. Terms of the specific repurchase ENF Sponsors (Proprietary) Limited is authorised to announce that agreement has been reached between one of the controlling shareholders of HCI, namely MIC Media Technology Holdings (Proprietary) Limited (“MIC”) and the board of directors of HCI (“the directors”), subject to the fulfillment of the conditions precedent as indicated paragraph 5 below, that HCI will repurchase from MIC, 12 820 000 HCI ordinary shares (being 3,29% of the issued HCI ordinary shares) at a price of 350 per HCI ordinary share (“the specific repurchase”), which shares will be cancelled in terms of sections 85 and 89 of the Companies Act, 1973 (Act 61 of 1973), as amended, and the Listings Requirements of the JSE Securities Exchange South Africa (“JSE”). 2. Rationale MIC had intended HCI to be a long-term strategic investment vehicle. In order, amongst other things, to diversify its investment portfolio, MIC has agreed to conclude the disposal of a portion of its shareholding through the specific repurchase. 3. Financial effects The pro forma financial effects of the specific repurchase on net asset value, net tangible asset value and headline loss per HCI ordinary share before and after the specific repurchase are set out below: Percentage (5) Per HCI ordinary share Notes Before After Increase/Decrease Net asset value (cents) 1 755 769 1,85 Net tangible asset value (R’m) 2 2 941 2 897 (1,50) Headline loss (cents) 3 54,9 57,8 (5,28) Notes: Based on 389 588 392 HCI ordinary shares in issue before the specific repurchase and 376 768 392 HCI ordinary shares in issue after the specific repurchase, based on the latest reported net asset value of HCI at 22 June 2001. Based on the latest published net asset statement of HCI as at 22 June 2001. Based on the audited HCI results for the year ended 31 March 2001. The amount in the “After” column represents the earnings that would have accrued per HCI ordinary share had the specific repurchase been effective on 1 April 2000 and an after tax funding cost of 9,79% per annum. 4. Funding of the specific repurchase HCI intends to make use of its existing cash resources and facilities at an after tax funding cost of 9,79% per annum to fund the specific repurchase. The directors have satisfied themselves as to the liquidity and solvency of HCI for the 12 month period immediately following the implementation date of the specific repurchase. 5. Conditions precedent The specific repurchase is subject to the fulfillment of the following conditions precedent: 5.1 the approval of the specific repurchase by the JSE; 5.2 approval by the requisite majority of HCI shareholders in general meeting of the special resolution necessary to implement the specific repurchase; and 5.3 registration of the special resolution with the Registrar of Companies. 6. Related party transaction In terms of the Listings Requirements of the JSE, MIC is a related party to HCI as MIC is a material shareholder of HCI. Accordingly, the HCI ordinary shares owned by the NUM Consortium, comprising MIC and all of its concert parties, will not be taken into account in determining a quorum at the general meeting and the votes attaching to those shares will not be taken into account in determining the results of the voting at such general meeting. A fair and reasonable opinion from an independent advisor, namely Fisher Hoffman PFK (Jhb) Inc, will be included in the circular to HCI shareholders. 7. Documentation A circular, which is subject to the approval of the JSE, containing full details of the specific repurchase and convening the HCI general meeting at which the special resolution required to implement the specific repurchase will be proposed, will be posted to HCI shareholders within 28 days of this announcement.

Source: HCI