Mvelaphanda Group acquires 12.3% of Vox Telecom

Issued by College Hill for VoxTelecom
Johannesburg, 08 Nov 2007

Mvelaphanda Group (Mvela) today announced it has acquired 137.5 million shares, or 12.3% of the issued share capital of telecommunications operator Vox Telecom for a cash consideration of R292.3 million in two transactions.

In the first transaction, Mvela subscribed for 110 million shares of Vox Telecom as part of Vox Telecom`s private placement to existing and potential strategic partners, subject to conditions precedent.

The subscription price is 212 cents per share, representing a 16% discount to the volume weighted average share price of Vox Telecom for the 90 trading days to 6 November 2007 on AltX. The cost of the subscription is R233.2 million.

Further, Mvelaphanda Group has acquired 27.5 million Vox Telecom shares from Vantage Capital in a separate agreement at 215 cents per share. The cost of the acquisition is R59.1 million and is unconditional.

Yolanda Cuba, CEO of Mvelaphanda Group, commented: "Our investment in Vox Telecom provides us with key strategic positioning over a unique range of operating telecom assets.

"As a leading alternative, independent telecommunications operator we have chosen Vox Telecom as a key focus of our investment in the provision of voice and data services to the telecommunications market, and see Vox Telecom as the vehicle for our investment strategy in this industry in Africa.

"Vox Telecom is ideally positioned to benefit from the further development of the South African telecom industry. We will work with the management of Vox Telecom to facilitate Vox Telecom`s licensing obligations and enable Vox Telecom to further grow its business in the corporate and government sector.

This investment will grow our intrinsic net asset value and ultimately improve the return earned on our capital employed. We will continue to seek opportunities to increase our investment in Vox Telecom."

Mvela`s subscription for 110 million Vox Telecom shares is subject to regulatory approval.

The transactions will not have a material financial effect on Mvelaphanda Group for the financial year ending 30 June 2008.

Mvelaphanda Group

Mvelaphanda Group is South Africa`s pre-eminent broad based, black controlled, owned and managed diversified group. Mvelaphanda Group`s strategy is to grow shareholder value (as measured primarily by intrinsic net asset value) through a combination of quality investments and cash generative operations. To achieve this strategy, the group seeks to maintain a balanced exposure through its investments and operations to those sectors of the South African economy which it believes will outperform in the medium to long-term.

This strategy involves the acquisition of interests primarily in operating companies where Mvelaphanda Group can have strategic influence over the investment with management.

Mvelaphanda Group holds investments in a range of companies operating in the financial services, consumer services, construction and infrastructure, non-mining resources and energy as well as telecoms, media and technology areas. Mvelaphanda`s operations comprise a range of services businesses in the areas of facilities management and professional services, food services and support services, employing approximately 25 000 people.

Vox Telecom

Vox Telecom Limited is a leading alternative, independent telecom operator, providing voice and data services to the southern African market. Vox Telecom aims to provide cost-effective, innovative telecommunications solutions to consumer and business customers while ensuring the delivery of outstanding customer service. The group competes through its primary brands DataPro, @lantic, Orion Telecom and Vox Telecom and has offices in Johannesburg, Durban, Cape Town and Pretoria as well as in Windhoek, Namibia. Vox Telecom is a listed company trading on the Alternative Exchange (AltX), a division of the JSE Limited.

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