Adoption of International Financial Reporting Standards

Dimension Data Holdings Plc is preparing for the adoption of International Financial Reporting Standards (IFRS) as its primary accounting basis for the year ending 30 September 2006.

The date of transition to these standards will be 1 October 2004 and Dimension Data is today presenting its restated unaudited income statement for the 12 months to 30 September 2005, and its restated unaudited balance sheets at 1 October 2004 and 30 September 2005.

Dimension Data previously reported under UK Generally Accepted Accounting Practice (UK GAAP).

The conversion to IFRS will have no material impact on the reported trading performance of the group for the year ended 30 September 2005, other than - as previously advised - in respect of IFRS 2 Share-based Payments.

The conversion to IFRS is also not expected to have a material impact on the trading performance of the group for the year ending 30 September 2006, other than in respect of IFRS 2 share based payments and IFRS 3 Business Combinations (as goodwill is no longer required to be amortised).

As advised in February 2005, accounting for the group`s share-based payments under IFRS 2 will result in a total charge to the 2005 income statement of US$10.5 million (an adjustment of US$6.7 million compared to UK GAAP) and an anticipated total charge to the income statement in 2006 of approximately US$15 million. In addition, the group does not expect any charges in 2006 in respect of the BEE transaction now accounted for under IFRS 2.

The total adjustment to equity at 1 October 2004 (the transition date to IFRS) will be a debit of US$13.8 million, largely as a result of a change in accounting for venture capital investments (US$8.0 million) as well as the capitalisation from inception of the Campus property lease (US$3.7 million).

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David Sherriffs, Chief Financial Officer, commented: "There will be no material cash flow implications as a result of the adoption of IFRS. The most significant impact on reported trading performance will be - as previously advised - accounting for the share-based payments, ie employee share incentive schemes."

The total adjustments are summarised as follows (US$ million):

[Table]

In addition to the above changes, the group expects some added volatility in earnings as a result of accounting for financial instruments under IAS 39 Financial Instruments: Recognition and Measurement.

Please visit www.dimensiondata.com to access the RNS/SENS announcement.