THIS CIRCULAR IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION

The definitions and interpretations commencing on page 8 apply throughout this Circular, including this front cover.

Action required1. This Circular is important and should be read with particular attention to the section entitled “Action required by Altech Shareholders”, which

commences on page 3.2. If you are in any doubt as to what action you should take, please consult your Broker, banker, attorney, CSDP or other professional adviser

immediately.3. If you have disposed of all your Altech Shares, this Circular should be handed to the purchaser of such Altech Shares or to the Broker, CSDP,

banker or other agent through whom the disposal was effected.

Altech does not accept responsibility, and will not be held liable, for any action of, or omission by, any CSDP or Broker including, without limitation, any failure on the part of the CSDP or Broker of any beneficial owner of Altech Shares to notify such beneficial owner of the transaction set out in this Circular.

ALLIED TECHNOLOGIES LIMITED ALLIED ELECTRONICS CORPORATION LIMITED Incorporated in the Republic of South Africa Incorporated in the Republic of South Africa (Registration number 1946/020415/06) (Registration number 1947/024583/06) Share code: ALT ISIN: ZAE000015251 Share code: ATN ISIN: ZAE000029658 (“Altech” or “the Company”) Share code: ATNP ISIN: ZAE000029666 (“Altron”)

CIRCULAR TO ALTECH SHAREHOLDERSregarding:• a scheme of arrangement in terms of section 114 of the Companies Act proposed by the Altech Board between

Altech and Altech Shareholders, in terms of which, if implemented, Altron, through its wholly owned subsidiary Altron Finance Proprietary Limited (“Alfin”) will acquire the entire issued ordinary share capital of Altech that the Altron Group does not already own in exchange for:– the Cash Consideration, being cash of R47.50 per Altech Share; alternatively– the Share Consideration, being the issue of 2.22 new Altron Participating Preference Shares to Altech

Shareholders for every Altech Share held; subject to the Share Consideration Limitation; and• the subsequent delisting of Altech from the JSE;

and incorporating:• a report prepared by the Independent Expert in terms of section 114(3) of the Companies Act;• historical financial information in respect of Altech and Altron;• a notice convening the Scheme Meeting;• a form of proxy (yellow) for use by Certificated Altech Shareholders and Dematerialised Altech Shareholders

with Own-name Registration only;• a form of election, surrender and transfer (blue) for use by Certificated Altech Shareholders only;• a statement of Dissenting Shareholders’ Appraisal Rights in terms of section 164(2) of the Companies Act; and• extracts of section 115 of the Companies Act dealing with the approval requirements for fundamental

transactions and section 164 of the Companies Act dealing with Dissenting Shareholders’ Appraisal Rights.

Investment bank, financial adviser Legal adviser to Altron Legal adviser to Altech and sponsor to Altech and Altron

Reporting accountants and auditors Independent Expert to Altech and Altron

Date of issue: 27 June 2013Additional copies of this Circular, in its printed format, may be obtained from Altech, the sponsor to Altech and the Transfer Secretaries at their respective addresses set out in the section of this Circular entitled “Corporate Information and Advisers”, during normal business hours from Friday, 27 June 2013 up to and including Friday, 26 July 2013. Copies of this Circular are available in the English language only.

CORPORATE INFORMATION AND ADVISERS

Company Secretary and registered office of Altech

Altech Management Services Proprietary Limitedc/o Dr John CarstensWoodmead North Office Park54 Maxwell DriveWoodmeadJohannesburg2191(PO Box 153, Bergvlei, 2012)

Investment bank, financial adviser and sponsor to Altech and Altron

Investec Bank Limited100 Grayston DriveSandton2196(PO Box 785700, Sandton, 2146)

Legal adviser to Altech

HR Levin Attorneys, Notaries & ConveyancersKentgate64 Kent RoadDunkeld2196(PO Box 52235, Saxonwold, 2132)

Reporting accountants and auditors to Altech and Altron

KPMG Inc.KPMG Crescent85 Empire RoadParktownJohannesburg(Private Bag 9, Parkview, 2122)

Company Secretary and registered office of Altron

Altron Management Services Proprietary Limitedc/o Andrew JohnstonAltron House4 Sherborne RoadParktownJohannesburg2193(PO Box 981, Houghton, 2041)

Transfer Secretaries to Altech and Altron

Computershare Investor Services Proprietary LimitedGround Floor, 70 Marshall StreetJohannesburg2001(PO Box 61051, Marshalltown, 2107)

Legal adviser to Altron

Edward Nathan Sonnenbergs Inc.150 West StreetSandton2196(PO Box 783347, Sandton, 2146)

Independent Expert

PricewaterhouseCoopers Corporate Finance Proprietary Limited2 Eglin RoadSunninghill2157(Private Bag X36, Sunninghill 2157)

1

TABLE OF CONTENTS

Page

COrpOrATE iNFOrmATiON ANd AdviSErS Insidefrontcover

impOrTANT LEgAL NOTiCES 2

ACTiON rEquirEd By ALTECh ShArEhOLdErS 3

SALiENT dATES ANd TimES 6

dEFiNiTiONS ANd iNTErprETATiONS 8

CirCuLAr TO ALTECh ShArEhOLdErS

1. Introduction 13

2. PurposeofthisCircular 14

3. RationalefortheScheme 14

4. BenefitsoftheSchemetoAltechShareholders 14

5. TermsandconditionsoftheScheme 14

6. ProformaearningsandnetassetvalueeffectspertainingtotheScheme 20

7. Altechlong-termsharebasedincentives 22

8. SuspensionandterminationoftheAltechlisting 23

9. Management 23

10. InterestsofDirectorsofAltechinAltronShares 23

11. InterestsofDirectorsofAltechinAltechOrdinaryShares 24

12. Otherarrangements 24

13. Irrevocableundertakingsandletterofcomfort 24

14. InterestsinAltronSharesbyprovidersofirrevocableundertakingsandtheletterofcomfort 25

15. Opinionsandrecommendations 25

16. Directors’responsibilitystatements 26

17. Consents 26

18. Costs 26

19. Documentsavailableforinspection 27

Annexure 1 OpinionoftheIndependentExpert 28

Annexure 2 Proformafinancialinformation 32

Annexure 3 Independentreportingaccountants’assurancereportonthecompilationofproformafinancialinformation 42

Annexure 4 HistoricalfinancialinformationofAltech 46

Annexure 5 HistoricalfinancialinformationofAltron 63

Annexure 6 ExchangeControlRegulations 69

Annexure 7 Section115–RequiredapprovalfortransactionscontemplatedinChapter5oftheCompaniesAct 70

Annexure 8 Section164–DissentingShareholders’AppraisalRights 72

Annexure 9 TradinghistoryofAltechOrdinaryShares 75

Annexure 10 TradinghistoryofAltronParticipatingPreferenceShares 77

Annexure 11 DealingsinAltechSharesbyprovidersofirrevocableundertakings 79

Notice convening the Scheme meeting 91

Form of proxy (yellow) Attached

Form of election, surrender and transfer (blue) in respect of Scheme (“Form”) Attached

2

impOrTANT LEgAL NOTiCES

Thedefinitionsandinterpretationscommencingonpage8ofthisCircularhavebeenusedintheselegalnotices.

AppLiCABLE LAWS

Therelease,publicationordistributionof thisCircular incertain jurisdictionsmayberestrictedby lawandthereforepersonsinanysuchjurisdictionsintowhichthisCircularisreleased,publishedordistributedshouldinformthemselvesaboutandobservesuchrestrictions.Anyfailuretocomplywiththeapplicablerestrictionsmayconstituteaviolationofthesecuritieslawsofanysuchjurisdiction.ThisCirculardoesnotconstitutethesolicitationofanoffertopurchasesharesorasolicitationofanyvoteorapprovalinanyjurisdictioninwhichsuchsolicitationwouldbeunlawful.

The Scheme, which is the subject of this Circular, may be affected by the laws of the relevant jurisdictions of non-residentShareholders.Suchnon-residentShareholders should familiarise themselveswithandobserveanyapplicablelegalrequirementsofsuchjurisdictions.Itistheresponsibilityofanynon-residentShareholdertosatisfyhimselfastothefullobservanceofthelawsandregulatoryrequirementsoftherelevantjurisdictioninconnectionwiththeScheme,whichisthesubjectofthisCircular, includingtheobtainingofanygovernmental,exchangecontrolorotherconsentsorthemakingofanyfilingswhichmayberequired,thecompliancewithothernecessaryformalities,thepaymentofanyissue,transferorothertaxesorotherrequisitepaymentsduetosuchjurisdiction.

TheSchemeisgovernedbythelawofSouthAfricaandissubjecttoanyapplicablelawsandregulations,includingtheCompaniesActandtheTakeoverRegulations.

AnyShareholderwho is indoubtas totheirposition, including,without limitation, their taxstatus, shouldconsultanappropriateindependentprofessionaladviserintherelevantjurisdictionwithoutdelay.

FOrWArd-LOOKiNg STATEmENTS

ThisCircularcontainsstatementsaboutAltechandAltronthatareormaybeforward-lookingstatements.Allstatements,otherthanstatementsofhistoricalfact,are,ormaybedeemedtobe,forward-lookingstatements, including,withoutlimitation,thoseconcerning:strategy;theeconomicoutlookfortheindustry;production;cashcostsandotheroperatingresults;growthprospectsandoutlookforoperations,individuallyorintheaggregate;liquidityandcapitalresourcesandexpenditureandtheoutcomeandconsequencesofanypendinglitigationproceedings.Theseforward-lookingstatementsarenotbasedonhistoricalfacts,butratherreflectcurrentexpectationsconcerningfutureresultsandeventsandgenerallymaybeidentifiedbytheuseofforward-lookingwordsorphrasessuchas“believe”,“aim”,“expect”,“anticipate”,“intend”,“foresee”,“forecast”,“likely”,“should”,“planned”,“may”,“estimated”,“potential”orsimilarwordsandphrases.

Examplesofforward-lookingstatementsincludestatementsregardingafuturefinancialpositionorfutureprofits,cashflows,corporatestrategy,anticipatedlevelsofgrowth,estimatesofcapitalexpenditure,acquisitionstrategy,andexpansionprospectsforfuturecapitalexpenditurelevelsandothereconomicfactors,suchas,interalia,interestrates.

Bytheirnature,forward-lookingstatementsinvolverisksanduncertaintiesbecausetheyrelatetoeventsanddependoncircumstancesthatmayormaynotoccurinthefuture.AltechandAltroncautionthatforward-lookingstatementsarenotguaranteesoffutureperformance.Actualresults,financialandoperatingconditions,liquidityandthedevelopmentswithintheindustryinwhichAltechandAltronoperatemaydiffermateriallyfromthosemadein,orsuggestedby,theforward-lookingstatementscontainedinthisCircular.

Alltheseforward-lookingstatementsarebasedonestimatesandassumptions,asregardsAltechandAltron,madebyAltechandAltronascommunicatedinpubliclyavailabledocumentsissuedbyAltechandAltron,allofwhichestimatesandassumptions,althoughAltechandAltronbelievethemtobereasonable,areinherentlyuncertain.Suchestimates,assumptionsorstatementsmaynoteventuate.Factorswhichmaycausetheactualresults,performanceorachievementstobemateriallydifferentfromanyfutureresults,performanceorachievementsexpressedorimpliedinthosestatementsorassumptionsincludeothermattersnotyetknowntoAltechandAltronornotcurrentlyconsideredmaterialbyAltechandAltron.

Shareholdersshouldkeepinmindthatanyforward-lookingstatementmadeinthisCircularorelsewhereisapplicableonlyatthedateonwhichsuchforward-lookingstatementismade.NewfactorsthatcouldcausethebusinessofAltechandAltronnottodevelopasexpectedmayemergefromtimetotimeanditisnotpossibletopredictallofthem.Further,theextenttowhichanyfactororcombinationoffactorsmaycauseactualresultstodiffermateriallyfromthosecontainedinanyforward-lookingstatementarenotknown.AltechandAltronhavenodutyto,anddonotintendto,updateorrevisetheforward-lookingstatementscontainedinthisCircularafterthedateofissueofthisCircular,exceptasmayberequiredbylaw.

3

ACTiON rEquirEd By ALTECh ShArEhOLdErS

IfyouhavedisposedofallyourAltechShares,thenthisCircular,togetherwiththeaccompanyingnoticeconveningtheSchemeMeeting, formofproxy (yellow) and formofelection, surrenderand transfer (blue), shouldbe forwarded tothe purchasertowhom,ortheBroker,agent,CSDPorbankerthroughwhom,youdisposedofyourAltechShares.

PleasetakecarefulnoteofthefollowingprovisionsregardingtheactiontobetakenbyAltechShareholders:

A Scheme Meeting will be held at 11:00 on Friday, 26 July 2013 at the registered office of Altech at WoodmeadNorth Office Park, 54 Maxwell Drive, Woodmead, Johannesburg, 2191, for the purpose of considering and,if deemed fit, passing, with or without modification, the resolutions required to approve a scheme of arrangementpursuanttowhichAltron’swholly-ownedsubsidiary,Alfin,willacquiretheentireissuedordinarysharecapitalofAltechthattheAltronGroupdoesnotalreadyown(savefortheAltechSharesheldbytheExcludedDissentingShareholders)fromSchemeParticipantsintermsofaScheme.A noticeconveningsuchSchemeMeetingisattachedhereto,andformspartofthisCircular.

1. dEmATEriALiSEd ALTECh ShArEhOLdErS WhO dO NOT hAvE OWN-NAmE rEgiSTrATiON

1.1 voting at the Scheme meeting

1.1.1 If youwish to attend the SchemeMeeting, you should instruct yourCSDPorBroker to issue youwiththenecessaryLetterofRepresentationtoattendtheSchemeMeetinginperson,inthemannerstipulatedinthecustodyagreementgoverningtherelationshipbetweenyouandyourCSDPorBroker.TheseinstructionsmustbeprovidedtotheCSDPorBrokerbythecut-offtimeanddateadvisedbytheCSDPorBrokerforinstructionsofthisnature.

1.1.2 If youdonotwish to, or are unable to attend the SchemeMeeting, butwish to vote thereat, youshouldprovide yourCSDPorBrokerwith your voting instructions in themanner stipulated in thecustodyagreementgoverningtherelationshipbetweenyouandyourBroker.TheseinstructionsmustbeprovidedtotheCSDPorBrokerbythecut-offtimeanddateadvisedbytheCSDPorBrokerforinstructionsofthisnature.IfyourCSDPorBrokerdoesnotobtainvotinginstructionsfromyou,itwillbeobligedtovoteinaccordancewiththeinstructionscontainedinthecustodyagreementconcludedbetweenyouandyourCSDPorBroker.

1.1.3 Youmustnotcompletetheattachedformofproxy(yellow).

1.2 Election of Scheme Consideration

1.2.1 YoumustadviseyourCSDPorBroker,inthemannerstipulatedinthecustodyagreementgoverningtherelationshipbetweenyouandyourCSDPorBroker,astothenumberofAltechSharesinrespectofwhichyouareelectingtheShareConsiderationandthenumberoftheAltechSharesinrespectofwhichyouareelectingtoreceivetheCashConsideration. IfyoufailtoadviseyourCSDPorBrokerof yourelection,yourCSDPorBrokerwillmakeanelectiononyourbehalfinthemannerstipulatedinthecustodyagreementgoverningtherelationshipbetweenyouandyourCSDPorBroker.

1.2.2 IfyourelectionisnotreceivedbytheTransferSecretariesbefore12:00ontheSchemeConsiderationRecordDate,youwillbedeemedtohaveelectedtoreceivetheCashConsideration.

1.2.3 Youmustnotcompletetheattachedformofelection,surrenderandtransfer(blue).

1.3 Surrender of documents of Title

YoudonothavetosurrenderanyDocumentsofTitle.ThiswillbedonebyyourCSDPorBroker.

2. dEmATEriALiSEd ALTECh ShArEhOLdErS WhO hAvE OWN-NAmE rEgiSTrATiON

2.1 voting at the Scheme meeting

2.1.1 You may attend, speak and vote at the Scheme Meeting in person subject to section 58 of theCompanies Act.

4

2.1.2 IfyoudonotwishtoorareunabletoattendtheSchemeMeetingbutwishtoberepresentedthereat,youmustcompletetheattachedformofproxy(yellow)inaccordancewiththeinstructionscontainedtherein and ensure that it is received by theTransfer Secretaries, Computershare Investor ServicesProprietaryLimited,GroundFloor,70MarshallStreet,Johannesburg,2001(POBox61051,Marshalltown,2107)byno later than24hoursbefore theSchemeMeeting that is tobeheldat11:00onFriday,26 July 2013.

2.2 Election of Scheme Consideration

2.2.1 YoumustadviseyourCSDPorBroker,inthemannerstipulatedinthecustodyagreementgoverningtherelationshipbetweenyouandyourCSDPorBroker,astothenumberofAltechSharesinrespectofwhichyouareelecting theShareConsiderationand thenumberof theAltechShares in respectof whichyouareelectingtoreceivetheCashConsideration.IfyoufailtoadviseyourCSDPorBrokerofyourelection,yourCSDPorBrokerwillmakeanelectiononyourbehalfinthemannerstipulatedinthecustodyagreementgoverningtherelationshipbetweenyouandyourCSDPorBroker.

2.2.2 IfyourelectionisnotreceivedbytheTransferSecretariesbefore12:00ontheSchemeConsiderationRecordDate,youwillbedeemedtohaveelectedtoreceivetheCashConsideration.

2.2.3 Youmustnotcompletetheattachedformofelection,surrenderandtransfer(blue).

2.3 Surrender of documents of Title

YoudonothavetosurrenderanyDocumentsofTitle.ThiswillbedonebyyourCSDPorBroker.

3. CErTiFiCATEd ALTECh ShArEhOLdErS

3.1 voting at the Scheme meeting

3.1.1 YoumayattendtheSchemeMeetingandspeakandvotethereatsubjecttosections57and58oftheCompaniesAct.

3.1.2 IfyoudonotwishtoorareunabletoattendtheSchemeMeetingbutwishtoberepresentedthereat,youmustcompletetheattachedformofproxy(yellow)inaccordancewiththeinstructionscontainedthereinandensurethatitisreceivedbytheTransferSecretaries,ComputershareInvestorServicesProprietaryLimited,GroundFloor,70MarshallStreet,Johannesburg,2001(POBox61051,Marshalltown,2107)bynolaterthan24hoursbeforetheSchemeMeetingthatistobeheldat11:00onFriday,26 July 2013.

3.2 Election of Scheme Consideration

3.2.1 Youmust,bycompletingtheattachedformofelection,surrenderandtransfer(blue),advisethenumberofAltechSharesinrespectofwhichyouareelectingtheShareConsiderationandthenumberoftheAltechSharesinrespectofwhichyouareelectingtoreceivetheCashConsideration.

3.2.2 IfyouwishtoreceivetheCashConsiderationbyEFT,youmustcompletePartCoftheformofelection,surrenderandtransfer(blue).

3.2.3 If your election is not received by theTransfer Secretaries by 12:00 on the Scheme ConsiderationRecordDate,youwillbedeemedtohaveelectedtoreceivetheCashConsideration.

3.3 Surrender of documents of Title

3.3.1 IftheSchemebecomesoperative,youwillberequiredtosurrenderyourDocumentsofTitleinrespectofallyourAltechSharesinordertoclaimtheSchemeConsiderationpayabletoyou.

3.3.2 IfyouwishtoexpeditereceiptoftheSchemeConsiderationandsurrenderyourDocumentsofTitleinanticipationoftheSchemebecomingoperative,youshouldcompletetheattachedformofelection,surrenderandtransfer(blue)andreturnit,togetherwiththerelevantDocumentsofTitlerelatingtoallyourAltechShares, inaccordancewiththeinstructionscontainedtherein,totheTransferSecretaries,ComputershareInvestorServicesProprietaryLimited,GroundFloor,70MarshallStreet,Johannesburg,2001 (POBox61763,Marshalltown,2107) tobe receivedby12:00on theSchemeConsiderationRecordDate.

3.3.3 IfDocumentsofTitle relating toanyAltechShares tobe surrenderedare lostordestroyed,AltechandAltronmaydispensewiththesurrenderofsuchDocumentsofTitleuponproductionofevidencesatisfactorytoAltechandAltronthat theDocumentsofTitle totheAltechShares inquestionhavebeen lost or destroyed and upon provision of a suitable indemnity on terms satisfactory to them.

5

Accordingly,iftheDocumentsofTitleinrespectofanyofyourAltechShareshavebeendestroyed,youshouldneverthelessreturntheattachedformofelection,surrenderandtransfer(blue),dulysignedandcompleted,togetherwithadulysignedandcompletedindemnityformwhich isobtainablefromtheTransferSecretaries.

4. gENErAL

4.1 Approval of the Scheme at the Scheme meeting

TheSchememustbeapprovedbyaspecialresolution,inaccordancewithsection115oftheCompaniesAct,attheSchemeMeeting,atwhichsufficientSchemeMembersmustbepresenttoexercise,inaggregate,atleast25%ofallthevotingrightsthatareentitledtobeexercisedattheSchemeMeeting.Inordertobeapproved,thespecialresolutionmustbesupportedbyatleast75%ofvotingrightsexercisedontheresolution.

4.2 Electronic participation at Scheme meeting

AltechShareholdersor theirproxiesmayparticipate in (butnot voteat) theSchemeMeetingbywayof ateleconferencecalland,iftheywishtodoso:

• mustcontacttheCompanySecretary(byemailattheaddresssecretary@Altech.co.zanolaterthan11:00onFriday,19July2013inordertoobtainapinnumberanddial-indetailsforthatconferencecall;

• willberequiredtoprovidereasonablysatisfactoryidentification;and

• willbebilledseparatelybytheirowntelephoneserviceprovidersfortheirtelephonecalltoparticipateintheSchemeMeeting,

provided thatAltech Shareholders and their proxies will not be able to vote telephonically at the SchemeMeetingandwillstillneedtoappointaproxytovoteontheirbehalfattheSchemeMeeting.

4.3 Court approval

4.3.1 AltechShareholdersareadvisedthat,intermsofsection115(3)oftheCompaniesAct,AltechmayincertaincircumstancesnotproceedtoimplementthespecialresolutionrequiredtoapprovetheScheme,despitethefactthatithasbeenadoptedattheSchemeMeeting,withouttheapprovaloftheCourt.

4.3.2 Acopyofsection115oftheCompaniesActpertainingtotherequiredapprovalfortheSchemeissetoutinAnnexure7tothisCircular.

4.4 dissenting Shareholders

4.4.1 AnAltechShareholderwhoisentitledtovoteattheSchemeMeetingisentitledtoseekreliefintermsofsection164oftheCompaniesActifthatAltechShareholdernotifiedAltechinadvanceinwritingofitsintentiontoopposethespecialresolution,waspresentattheSchemeMeetingandvotedagainstthespecialresolution.

4.4.2 Acopyofsection164oftheCompaniesActpertainingtoDissentingShareholders’AppraisalRightsissetoutinAnnexure8tothisCircular.

4.5 dematerialisation

IfyouwishtoDematerialiseyourAltechShares,pleasecontactyourBroker. AltechShareholdersareadvisedthatnoDematerialisationorrematerialisationofAltechSharesmaytakeplaceafterThursday,8August2013.

4.6 Non-resident Shareholders

Altech Shareholders who are not resident in, or who have registered addresses outside SouthAfrica, mustsatisfythemselvesastothefullobservanceofanyapplicablejurisdictionconcerningthereceiptoftheSchemeConsideration,includingobtaininganyrequisitegovernmentalorotherconsents,observinganyotherrequisiteformalitiesandpayinganytransferorothertaxesdueinsuchjurisdiction.AltechShareholderswhoareinanydoubtas to theirpositionsshouldconsult theirprofessionaladvisers immediately. If thereceiptbyanAltechShareholderof theShareConsiderationwould requireAltron,Alfinand/orAltech tocomplywith filingand/orother regulatoryobligations in the jurisdiction inwhichsuchAltechShareholder is resident,that Altech Shareholder will be regarded as a “Cash-Only Altech Shareholder” and will be deemed to have elected to receive the Cash Consideration in respect of all of its Altech Shares irrespective of its actual election.

6

SALiENT dATES ANd TimES

2013

RecorddatetodeterminewhichAltechShareholdersareeligibletoreceivetheSchemeCircular Friday21June

CircularpostedtoAltechShareholdersandnoticeconveningtheSchemeMeetingreleasedonSENS on Thursday,27June

NoticeconveningtheSchemeMeetingpublishedintheSouthAfricanpresson Friday,28June

LastdaytotradeAltechSharesinordertoberecordedintheRegistertovoteattheSchemeMeeting(seenote2below)on Friday,12July

RecorddatetobeeligibletovoteattheSchemeMeeting,beingtheSchemeVotingRecordDate,bycloseoftradeon Friday,19July

LastdaytolodgeformsofproxyinrespectoftheSchemeMeetingby11:00on Thursday,25July

LastdateforAltechShareholderstogivenoticeoftheirobjectionstothespecialresolutionapprovingtheSchemebynolaterthan11:00on Friday,26July

Scheme meeting to be held at 11:00 on Friday,26July

ResultsoftheSchemeMeetingreleasedonSENSon Friday,26July

ResultsoftheSchemeMeetingpublishedintheSouthAfricanpresson Monday,29July

IftheSchemeisapprovedbyAltechShareholdersattheSchemeMeetingbutwithsufficientopposingvotesthatAltechShareholdermayrequireAltechtoobtainCourtapprovalfortheSchemeascontemplatedinsection115(3)(a)oftheCompaniesAct:

LastdateonwhichAltechShareholderscanmakeapplicationtotheCourtintermsofsection115(3)(a)oftheCompaniesActon Monday,12August

LastdateforAltechtogivenoticeofadoptionofthespecialresolutionapprovingtheSchemetoAltechShareholdersobjectingtothespecialresolutionon Monday,12August

IfnoAltechShareholdersexercisetheirrightsintermsofsection115(3)(a)oftheCompaniesAct:

FinalisationDateexpectedtobeon Friday,26July

FinalisationDateannouncementexpectedtobereleasedonSENSon Friday,26July

FinalisationDateannouncementexpectedtobepublishedintheSouthAfricanpresson Monday,29July

ExpectedSchemeLDT,beingthelastdaytotradeAltechSharesontheJSEinordertoberecordedintheRegistertoreceivetheSchemeConsideration,on Thursday,8August

SuspensionoflistingofAltechOrdinarySharesontheJSEexpectedtotakeplaceatthecommencementoftradeon Monday,12August

ExpectedSchemeConsiderationRecordDate,beingthedateonwhichSchemeParticipantsmustberecordedintheRegistertoreceivetheSchemeConsideration,bycloseoftradeon Friday,16August

LastdateonwhichtheSchemeParticipantscanmakeanelectioninrespectoftheSchemeConsiderationby12:00on Friday,16August

ExpectedOperativeDateoftheSchemeon Monday,19August

SchemeConsiderationexpectedtobepaid/postedtocertificatedSchemeParticipants(providedtheirformofelection,surrenderandtransfer(blue)andDocumentsofTitlearereceivedonorpriorto12:00ontheSchemeConsiderationRecordDate)onorabout Monday,19August

DematerialisedSchemeParticipantsexpectedtohavetheiraccounts(heldattheirCSDPorBroker)creditedwiththeSchemeConsiderationonorabout Monday,19August

TerminationoflistingofAltechOrdinarySharesontheJSEexpectedtotakeplaceatthecommencementoftradeonorabout Tuesday,20August

7

Notes:

1. All dates and timesmaybe changedbymutual agreementbetweenAltech andAltron (subject to the approvalof the JSE and/or theTRP,if required).ThedateshavebeendeterminedbasedoncertainassumptionsregardingthedatebywhichcertainshareholderandregulatoryapprovalswillbeobtainedandthatnoCourtapprovalorreviewofthespecialresolutionwillberequired.AnychangeinthedatesandtimeswillbereleasedonSENSandpublishedintheSouthAfricanpress.

2. AltechShareholdersshouldnotethatas transactions insharesaresettled in theelectronicsettlementsystemusedbyStrate, settlementoftradestakesplacefiveBusinessDaysaftersuchtrade.Therefore,AltechShareholderswhoacquireAltechSharesaftercloseoftradeonFriday,12July 2013willnotbeeligibletovoteattheSchemeMeeting.

3. AlltimesgiveninthisdocumentarelocaltimesinSouthAfrica.

4. SharecertificatesmaynotbeDematerialisedorrematerialisedafterThursday,8August2013.

5. IftheSchemeisapprovedbyaninsufficientnumberofAltechShareholdersattheSchemeMeetingsothatanAltechShareholdermayrequireAltechtoobtainCourtapprovaloftheSchemeascontemplatedinsection115(3)(a)oftheCompaniesAct,andanAltechShareholderinfactdeliverssucharequest,thedatesandtimessetoutabovewillnotberelevant.AltechShareholderswillbenotifiedseparatelyoftheapplicabledatesandtimesunderthisprocess.

6. IfanyAltechShareholderwhovotesagainsttheSchemeexercisesitsrightsintermsofsection115(3)(b)oftheCompaniesActandappliestoCourtforareviewofthetransaction,thedatesandtimessetoutabovewillnotberelevant.AltechShareholderswillbenotifiedseparatelyoftheapplicabledatesandtimesunderthisprocess.

8

dEFiNiTiONS ANd iNTErprETATiONS

InthisCircularanditsannexures,unlessotherwisestatedorthecontextindicatesotherwise,thewordsandexpressionsinthefirstcolumnshallhavethemeaningsstatedoppositetheminthesecondcolumn,andwordandexpressions inthe singular shall include the plural and vice versa,words importing natural persons shall include juristic persons andunincorporatedassociationsofpersonsandviceversa,andanyreferencetoonegendershallincludetheothergender.

“Alfin” Altron Finance Proprietary Limited (registration number 1969/014983/07),a private company duly incorporated in accordance with the laws of SouthAfrica,andawhollyownedsubsidiaryofAltron;

“Altech”or“theCompany” AlliedTechnologies Limited (registration number 1946/020415/06), a publiccompanyincorporatedinSouthAfrica,thesharesofwhicharelistedontheJSE;

“AltechGroup” AltechanditsSubsidiaries;

“AltechBoard”or“DirectorsofAltech” theboardofDirectorsofAltechattheLastPracticableDate,whosedetailsaresetoutonpage13ofthisCircular ;

“AltechIndependentBoard” theAltechindependentboardofdirectors,constitutedintermsoftheTakeoverRegulations,comprisingofADDixon,MLLeoka,RNaidoo,RSNtuli,MSindaneandSNMabaso-Koyana,noneofwhomholdanymaterialshareholdingsineitherAltechorAltron,constitutedforthepurposeoftheOfferascontemplatedinRegulation108(8);

“AltechOrdinaryShare/s” issuedordinarysharesof0.5centeachinthesharecapitalofAltech;

“AltechShareholder/s”or“Shareholder/s” registeredholdersofAltechShare/s;

“AltechShare/s”or“Share/s” issuedordinarysharesof0.5centeachinthesharecapitalofAltechexcludingthoseissuedAltechordinarysharesheldbytheAltronGroup;

“Altron” AlliedElectronicsCorporationLimited,(registrationnumber1947/024583/06),apubliccompanyincorporatedinSouthAfrica,thesharesofwhicharelistedontheJSE;

“AltronCircular” thecirculardated27 June2013posted toAltronShareholders in respectof,amongstotherthings,theOffer ;

“AltronBoard”or“DirectorsofAltron” theboardofdirectorsofAltron;

“AltronConsiderationShare/s” the Altron Participating Preference Shares to be alloted and issued to theSchemeParticipantsasconsiderationfortheSchemeSharesacquiredbyAlfinpursuanttotheScheme;

“AltronGroup” AltronanditsSubsidiaries;

“AltronOrdinaryShares” shareswithaparvalueof2centseachinthesharecapitalofAltron;

“AltronParticipatingPreferenceShares” shareswithaparvalueof0.01centeachinthesharecapitalofAltron;

“AltronShareholder(s)” holdersofAltronOrdinarySharesandAltronParticipatingPreferenceShares;

“AltronShare/s” AltronOrdinarySharesand/orAltronParticipatingPreferenceShares;

“AnnouncementDate” thedateonwhichtheFirmIntentionAnnouncementwasannouncedonSENS,being17May2013;

“AppraisalRights” the rights afforded to Altech Shareholders in terms of section 164 of theCompaniesAct,assetoutinAnnexure8tothisCircular ;

“Broker” anypersonregisteredasabrokingmember(equities)intermsoftherulesoftheJSEmadeinaccordancewiththeprovisionsoftheSecuritiesServicesAct;

“BusinessDay” anydayotherthanaSaturday,SundayorapublicholidayinSouthAfrica;

9

“CashConsideration” R47.50payableincashforeverySchemeShareheldbyaSchemeParticipantwhichelects to receive theCashConsideration,orwhich isdeemed tohaveelectedtheCashConsiderationbyvirtueofhavingnotmadeavalidelectionwhich is received by theTransfer Secretaries before 12:00 on the SchemeConsiderationRecordDate;

“Cash-OnlyAltechShareholders” AltechShareholderswhoarenotSouthAfricanresidentsandwhoareaccordinglyunable to accept the Share Consideration otherwise than byAltron,Altechand/orAlfin complying with filing and/or other regulatory obligations in thejurisdictionsinwhichsuchAltechShareholdersareresident;

“cents” SouthAfricancentsintheofficialcurrencyofSouthAfrica;

“CertificatedAltechShare/s” AltechShares representedby share certificatesorotherwritten instruments,which have not been surrendered for Dematerialisation in terms of therequirementsofStrate;

“CertificatedAltechShareholder/s” allregisteredholdersofCertificatedAltechShares;

“Circular” all the documents contained in this bound document dated 27 June 2013,includingthenoticeoftheSchemeMeetingandtheformofproxy(yellow) inrespect of the SchemeMeeting and formof election, transfer and surrender(blue);

“CommonMonetaryArea” South Africa, the Republic of Namibia and the Kingdoms of Lesotho andSwaziland;

“CompaniesAct” theCompaniesAct,2008(Act71of2008),asamendedincludingtheRegulations;

“CompanySecretary” Altech Management Services Proprietary Limited (registration number1972/013368/07);

“ConditionalRightsScheme” theschemesetoutinpart5ofthedeedconstitutingTheAltechGroupShareIncentiveTrust;

“ConditionsPrecedent” the conditions precedent to which the Scheme is subject, as set out inparagraph5.2oftheCircular ;

“Court” any South African court with competent jurisdiction to approve theimplementation of the special resolution set out in the notice conveningthe  Scheme Meeting pursuant to section 115 of the CompaniesAct and/orto determine the fair valueofAltechSharesandmakeanorderpursuant tosection 164(14)oftheCompaniesAct;

“CSDP” a person that holds in custody and administers securities or an interest insecurities and thathasbeen acceptedby a central securitiesdepository as aparticipantintermsofsection34oftheSecuritiesServicesAct;

“Dematerialise(d)”or“Dematerialisation” theprocessbywhichCertificatedAltechSharesareconvertedintoelectronicformatasDematerialisedAltechSharesandrecordedinAltech’sUncertificatedSecuritiesRegister ;

“DematerialisedAltechShare/s” AltechSharesthathavebeenDematerialisedthroughaCSDPorBrokerandarerecordedinanuncertificatedsecuritiesregisterformingpartofAltech’ssecuritiesregister ;

“DematerialisedAltechShareholder/s” allregisteredholdersofDematerialisedAltechShares;

“DissentingShareholders” AltechShareholderswho(i)validlyexercisetheirAppraisalRightsbydemanding,intermsofsections164(5)to164(8)oftheCompaniesAct,thattheCompanypay them the fair value of all of their Altech Shares; (ii) do not withdrawthat demand before the Company makes an offer to them in terms ofsection164(11)oftheCompaniesAct;and(iii)donotafteranofferismadetothembyAltechintermsofsection164(11)oftheCompaniesActallowsuchofferto lapse;

10

“DocumentsofTitle” asharecertificate,certifiedtransferdeed,balancereceiptand/oranyotherformofacceptabledocumentoftitleacceptabletoAltechinrespectofAltechShares;

“EFT” ElectronicFundsTransfer ;

“ENS” EdwardNathanSonnenbergsInc,beingthelegaladvisertoAltronandAlfininrespectoftheOfferandtheScheme;

“EPS” EarningsPerShare;

“ExchangeControlRegulations” the ExchangeControl Regulations, promulgated in terms of section 9 of theCurrencyandExchangesAct,1933(Act9of1933),asamended;

“ExcludedDissentingShareholders” DissentingShareholderswhoacceptanoffermadetothembytheCompanyintermsof section 164(11)of theCompaniesAct or, pursuant to anorderofCourt,tendertheirAltechSharestoAltechintermsofsection164(15)(v)oftheCompaniesAct;

“FinalisationDate” thedateonwhichalltheConditionsPrecedentshallhavebeenfulfilledorwaived,asthecasemaybe;

“FirmIntentionAnnouncement” theannouncementreleasedonSENSonFriday,17May2013andintheSouthAfricanpressonMonday,20May2013,settingoutthetermsofthefirmintentionbyAltron’swhollyownedsubsidiary,Alfin,toproceedwithanoffertoacquireAltechShares;

“ForeignShareholder” anAltechShareholderwhoisanon-residentofSouthAfricaascontemplatedintheExchangeControlRegulations;

“HEPS” HeadlineEarningsPerShare;

“HRL” HRLevinAttorneys,Notaries&Conveyancers,beingthelegaladvisertoAltechinrespectoftheScheme;

“IFRS” InternationalFinancialReportingStandards;

“IndependentExpert”or“PwC” PricewaterhouseCoopersCorporateFinanceProprietaryLimited (registrationnumber1970/003711/07),aprivatecompanydulyincorporatedinaccordancewiththelawsofSouthAfrica,andappointedtoprovideexternaladvicetotheAltechIndependentBoardinrelationtotheSchemeintermsofsection114oftheCompaniesActandRegulation110(1);

“InvestecCorporateFinance” the corporate finance division of Investec Bank Limited (registration number1969/004763/06), a public company incorporated in SouthAfrica, being theinvestmentbank,financialadviserandsponsortoAltronandAltechinrespectoftheScheme;

“JSE” JSE Limited (registration number 2005/022939/06), a public company dulyincorporated in accordancewith the lawsof SouthAfrica and licensedas anexchangeundertheSecuritiesServicesAct;

“KPMG” KPMG Incorporated, registered auditors, being the reporting accountant toAltronandAltech;

“LastPracticableDate” Friday,21June2013,beingthe lastpracticabledatepriortothefinalisationofthisCircular ;

“ListingsRequirements” theListingsRequirementsoftheJSE;

“Offer” theoffermadebyAltron’swhollyownedsubsidiary,Alfin,intermsofthisCirculartoacquireAltechSharesbywayofaScheme;

“OfferPeriod” shall bear the meaning ascribed to such term in section 117(1)(g) of theCompaniesAct;

11

“OperativeDate” theBusinessDayonwhichAlfinandAltronwillcommencesettlingtheSchemeConsiderationtoSchemeParticipantsasatthatdate,beingthefirstBusinessDayfollowing the Scheme Consideration Record Date, which is expected to beMonday,19August2013;

“Own-nameRegistration” DematerialisedAltechShareholderswhohave instructed theirCSDP toholdtheirAltechSharesintheirownnameontheuncertificatedsecuritiesregisterof Altron;

“R”or“Rand” SouthAfricanRand,theofficialcurrencyofSouthAfrica;

“Register” Altech’ssecuritiesregister,includingtheUncertificatedSecuritiesRegister ;

“Regulations” theCompaniesRegulations,2011,publishedintermsoftheCompaniesAct;

“SARB” theSouthAfricanReserveBank;

“Scheme” theschemeofarrangementintermsofsection114(1)oftheCompaniesAct,proposed by theAltech Board betweenAltech andAltech Shareholders, interms of which, if the Scheme becomes operative, Altron’s wholly ownedsubsidiary,Alfin,willacquiretheSchemeSharesoftheSchemeParticipantsfortheSchemeConsideration;

“SchemeConsideration” theCashConsiderationortheShareConsideration,oracombinationofboth,subjecttotheShareConsiderationLimitation;

“SchemeConsiderationRecordDate” thefifthBusinessDayaftertheSchemeLDT,beingthelatestdateforholdersofAltechSharestoberegisteredassuchintheRegister inordertoreceivetheSchemeConsideration,whichdateisexpectedtobeFriday,16August2013;

“SchemeLDT” beingthelastdaytotradeAltechSharesontheJSEinordertoberegisteredintheRegisterontheSchemeConsiderationRecordDate,whichdateisexpectedtobeThursday,8August2013;

“SchemeMeeting” themeetingofSchemeMembersconvenedintermsofsection115(2)(a)oftheCompaniesAct (including any adjournmentorpostponement thereof), tobeheld at 11:00 on Friday, 26 July 2013, at the registered office of Altech atWoodmeadNorthOfficePark,54MaxwellDrive,Woodmead, Johannesburg,2191, to consider and, if deemed fit, adoptwithorwithoutmodification, theresolutionsnecessarytoapproveandimplementtheScheme;

“SchemeMembers” Altech Shareholders holdingAltech Shares recorded in the Register on theSchemeVotingRecordDate,whoarelawfullyentitledtoattendandvoteattheSchemeMeeting;

“SchemeParticipant(s)” SchemeMembersrecordedintheregisterat17:00ontheSchemeConsiderationRecordDate;providedthat(i)holdersofAltechShareswhobecomeExcludedDissentingShareholdersaftertheSchemeConsiderationRecordDatewillnotberegardedasSchemeParticipants;and(ii)becauseDissentingShareholdersmay become Excluded Dissenting Shareholders, Dissenting Shareholders willonly be regarded as Scheme Participants once they cease to be DissentingShareholdersascontemplatedinparagraph5.6oftheCircular ;

“SchemeShares” alloftheAltechSharesheldbySchemeParticipantsontheSchemeConsiderationRecordDate;

“SchemeVotingRecordDate” thelastdatetoberecordedintheRegisterinorderforAltechShareholderstobeeligibletoattend,speakandvoteattheSchemeMeeting(oranyadjournmentthereof),beingFriday,19July2013;

“SecuritiesServicesAct” theSecuritiesServicesAct,2004(Act36of2004),asrepealedandreplacedbytheFinancialMarketsAct,2012(Act19of2012);

“SENS” SecuritiesExchangeNewsService,thenewsserviceoperatedbytheJSE;

12

“ShareConsideration” 2.22Altron Participating Preference Shares for every Scheme Share held byScheme Participants on the Scheme Consideration Record Date who haveelectedtheshareconsideration;

ShareConsiderationLimitation” amaximumof50%oftheaggregateSchemeConsideration;

“SouthAfrica” theRepublicofSouthAfrica;

“Strate” Strate Limited (registration number 1998/022242/06), a public companyincorporatedinSouthAfrica,whichisaregisteredcentralsecuritiesdepositoryandwhichisresponsiblefortheelectronicsettlementsystemusedbytheJSE;

“Subsidiary” a“subsidiary”asdefinedinsection1(andthemeaningdeterminedinaccordancewithsection3)oftheCompaniesAct;

“SwitchRatio” theratioof2.22AltronParticipatingPreferenceSharesforeverySchemeSharewhichistobeappliedtocalculatethenumberofAltronParticipatingPreferenceShareswhichwillbeissuedtotheSchemeParticipantsinconsiderationfortheirSchemeShares;

“TakeoverRegulations” Chapter5oftheRegulations;

“TheAltron2009SharePlan” theplanconstitutedinaccordancewiththerulesofTheAltron2009SharePlanasadoptedbytheAltronBoardonorabout15April2009andapprovedbyAltronShareholdersatageneralmeetingheldon11May2009;

“TheAltronGroupShareIncentiveTrust” the trust constituted for the benefit of employees andofficers of theAltronGroup by way of a trust deed approved at a general meeting of AltronShareholdersheldduringorabout2002;

“TransferSecretaries” Computershare Investor Services Proprietary Limited (registration number2004/003647/07),aprivatecompanydulyincorporatedinaccordancewiththelawsofSouthAfrica;

“TRP” theTakeover Regulation Panel, established in terms of section 196 of theCompaniesAct;

“UncertificatedSecuritiesRegister” therecordofDematerialisedAltechSharesadministeredandmaintainedbyaCSDPandwhichformspartoftheRegister ;and

“VWAP” VolumeWeightedAveragePrice.

13

ALLiEd TEChNOLOgiES LimiTEdIncorporatedintheRepublicofSouthAfrica

(Registrationnumber1946/020415/06)Sharecode:ALT ISIN:ZAE000015251

(“Altech”or“theCompany”)

directors

Executive

CGVenter(Chiefexecutiveoff icer)DrJEWCartens(Chieff inancialoff icer)

Non-executive

MLLeoka*(Non-executiveChairman)RSNtuli*(Leadindependent)ADDixon*PMOCurleSNMabaso-Koyana*RNaidoo*DrHASerebroMSindane*AMRSmithREVenterDrWPVenter*Independent

CirCuLAr TO ALTECh ShArEhOLdErS

1. iNTrOduCTiON

IntheFirmIntentionAnnouncement,AltechShareholderswereinformedofthefirmintentionofAltron’swhollyownedsubsidiary,Alfin,tomakeanOffertoacquiretheentireissuedordinarysharecapitalofAltechthattheAltronGroupdoesnotalreadyown,bywayofaSchemeintermsofsection114oftheCompaniesAct,tobeproposedbytheAltechBoardbetweenAltechandAltechShareholders.

TheSchemeConsiderationpayablebyAlfintoSchemeParticipants,intheeventoftheConditionsPrecedentbeingfulfilled(orwaived)andtheSchemebecomingoperative,willbesettledasto:

• theCashConsideration,beingcashofR47.50perSchemeShare;alternatively

• theShareConsideration,beingtheissueof2.22newAltronParticipatingPreferenceSharestoSchemeParticipantsforeverySchemeShareheld;subjecttotheShareConsiderationLimitation

ThetermsoftheAltronParticipatingPreferenceSharesareavailableinAltron’smemorandumofincorporation,whichisavailableforinspectionassetoutinparagraph19ofthisCircular.

NofractionswillbeissuedandanyfractionofAltronParticipatingPreferenceSharestowhichanySchemeParticipantisentitledaftertheconversionofalloftheSchemeSharesheldbysuchSchemeParticipantwill,ifitcomprises0.5ormoreofanAltronParticipatingPreferenceShareberoundedup,otherwisewillberoundeddowntothenearestwholeAltronParticipatingPreferenceShare.

IntheeventthatSchemeParticipants, inaggregateelecttoreceivetheShareConsiderationinexcessoftheShareConsiderationLimitation,suchexcesswillbepaidintheformoftheCashConsiderationandthecalculationoftheShareConsiderationcomponentoftheSchemeConsiderationwillbebasedontheformulasetoutbelow:

A = B x dC

14

Where:

A = The ShareConsideration to be received by a SchemeParticipant, in the event that SchemeParticipants inaggregateelecttoreceivetheShareConsiderationinexcessoftheShareConsiderationLimitation

B = ThenumberofAltronParticipatingPreferenceSharesthatcomprisetheShareConsiderationLimitation

C = TheaggregateShareConsiderationelectedbySchemeParticipants

d = TheShareConsiderationelectedbyaSchemeParticipant

SchemeParticipantswhodonotmakeavalidelectionintermsoftheSchemewillbedeemedtohaveelectedtoreceivetheCashConsiderationinrespectof100%oftheirSchemeShares.

Following the implementationof theScheme,Alfinwillbe theregisteredandbeneficialownerof theentire issuedordinarysharecapitalofAltech,excludingordinarysharesheldbyAltech’sSubsidiaries, treasurysharesheldbytheAltronGroupandtheAltechSharesheldbyExcludedDissentingShareholders(whoseAltechShareswillbetransferredtoAltechandcancelled,asmorefullysetoutinparagraph5.6ofthisCircular).

2. purpOSE OF ThiS CirCuLAr

ThepurposeofthisCircularistoprovideAltechShareholderswithrelevantinformationregardingtheScheme,including,interalia,thereportoftheIndependentExpertpreparedintermsofsection114(3)oftheCompaniesActandtherecommendationoftheAltechIndependentBoardinrespectoftheScheme,andtogivenoticeconveningtheSchemeMeeting inorder toconsiderand, ifdeemed fit, topasswithorwithoutmodification the resolutionsnecessary toapproveandimplementtheSchemeinaccordancewiththeCompaniesAct,theTakeoverRegulationsandtheListingsRequirements.AnoticeconveningtheSchemeMeetingisattachedto,andformspartof,thisCircular.

3. rATiONALE FOr ThE SChEmE

TheAltechBoardbelievesthattheacquisitionofAltechShareswill,interalia:

• provideSchemeParticipantswithasignificantpremiumontheirshareholdinginAltech;

• simplifythecorporateandoperatingstructureoftheAltronGroup;

• createasinglelistedpointofentryintotheAltronGroup;

• resultinpotentialbusinesssynergiesandcostsavingsthatwillflowandbebeneficialtotheAltronGroup.TheAltronBoardhasassessedandconductedareviewofthepotentialbusinesssynergiesandcostsavingsresultingfromtheScheme;and

• possiblynecessitateamanagementrestructurewithintheAltronGroup.

4. BENEFiTS OF ThE SChEmE TO ALTECh ShArEhOLdErS

TheCashConsiderationandShareConsiderationrepresentapremiumof31.1%totheVWAPofAltechOrdinarySharestradedontheJSEoverthe30BusinessDaysuptothedateonwhichthefirstcautionaryannouncementwasreleasedonSENS,beingFriday,22March2013.

Furthermore,SchemeParticipantsareaffordedtheopportunitytoremaininvestedintheAltronGroupfollowingtheimplementationoftheScheme.

5. TErmS ANd CONdiTiONS OF ThE SChEmE

Intermsofsection114(1)oftheCompaniesAct,theAltechBoardproposestheScheme,assetoutinthisparagraph5,betweenAltechandtheAltechShareholders.

5.1 The Scheme

5.1.1 IntermsoftheScheme,Altron’swhollyownedsubsidiary,Alfin,willacquiretheSchemeSharesfromtheSchemeParticipantsinexchangefortheSchemeConsideration.

5.1.2 SubjecttotheSchemebecomingunconditional:

5.1.2.1 theSchemeParticipants(whethertheyvotedinfavouroftheSchemeornotorabstainedorrefrainedfromvoting)shallbedeemedtohavedisposedof(andshallbedeemedtohaveundertakentotransfer)theirSchemeShares,freeofencumbrances,toAlfinwitheffectfromtheOperativeDateinexchangefortheSchemeConsideration,andAlfinshallbedeemedto

15

haveacquiredregisteredandbeneficialownershipofalltheSchemeShareswitheffectfromtheOperativeDate;

5.1.2.2 thedisposalandtransferbyeachSchemeParticipantof theSchemeSharesheldbyeachsuchSchemeParticipanttoAlfin,andtheacquisitionandownershipofthoseSchemeSharesbyAlfin, pursuant to the provisions of the Scheme, shall take place with effect from theOperativeDatefromwhichdateallriskandbenefitoftheSchemeSharesshallpasstoAlfin;

5.1.2.3 eachSchemeParticipantshallbedeemedtohavetransferredtoAlfin,witheffectfromtheOperative Date, all of the Scheme Shares held by such Scheme Participant without anyfurtheractorinstrumentbeingrequired;and

5.1.2.4 witheffect fromtheOperativeDate,SchemeParticipantsshallbeentitledtoreceivetheSchemeConsideration,subjecttotheremainingprovisionsofthisparagraph5.

5.1.3 EachSchemeParticipant irrevocably and in rem suam authorisesAltech, asprincipal,withpowerofsubstitution,tocausetheSchemeSharesdisposedofbyanySchemeParticipantintermsoftheSchemetobetransferredto,andregisteredinthenameof,AlfinonoratanytimeaftertheOperativeDate,andtodoallsuchthingsandtakeallsuchsteps(includingthesigningofanytransferform)asAltechinitsdiscretionconsidersnecessaryinordertoeffectthattransferandregistration.

5.1.4 TheSchemeConsiderationshallbesettled,infull,inaccordancewiththetermsoftheSchemewithoutregardtoanylien,rightofset-off,counterclaimorotheranalogousrighttowhichAltech,AltronorAlfinmayotherwisebe,orclaimtobe,entitledagainstaSchemeParticipant.

5.1.5 Altech,asprincipal,shallprocurethatAlfincomplieswithitsobligationsundertheScheme,andAltechaloneshallhavetherighttoenforcethoseobligations(ifnecessary)againstAlfin.

5.1.6 TherightsoftheSchemeParticipantstoreceivetheSchemeConsiderationwillberightsenforceablebySchemeParticipantsagainstAltechonly.SchemeParticipantswillbeentitledtorequireAltechtoenforceitsrightsintermsoftheSchemeagainstAlfin.

5.1.7 TheeffectoftheSchemewill,interalia,bethatAlfinwill,witheffectfromtheOperativeDate,becometheregisteredandbeneficialownerofallSchemeShares.NoneoftheSchemeShareswillbetransferredtoanyotherperson.

5.1.8 Altron,AlfinandAltechhaveagreedthat,upontheSchemebecomingoperative,theywillgiveeffecttothetermsandconditionsoftheSchemeandwilltakeallactionsandsignallnecessarydocumentstogiveeffecttotheScheme,subjecttoparagraph4.6ofActionRequiredbyAltechShareholders.

5.1.9 Subjecttothefulfilmentorwaiver,asthecasemaybe,oftheConditionsPrecedent,theSchemewillbeimplementedwitheffectfromtheOperativeDate.

5.2 Conditions precedent

TheSchemewillbesubjecttothefulfilmentorwaiver(inwholeorinpartbyAltron),ofthefollowingConditionsPrecedentby31August2013orsuchlaterdateasAltronandAltechmayagreetoinwriting:

5.2.1 to the extent required, the requisite majority of the Altron Shareholders approving the relevantresolutionsrequiredtoauthorisetheimplementationoftheOfferasa“category1transaction”intermsofRule9.20oftheListingsRequirementsandtheallotment,issueandprocurementofthelistingontheJSEoftheAltronParticipatingPreferenceSharescomprisingtheShareConsiderationinaccordancewiththememorandumofincorporationofAltron;

5.2.2 the approval of the Scheme by the requisite majority ofAltech Shareholders, as contemplated insection 115(2)oftheCompaniesAct,and:

5.2.2.1 totheextentrequired,theapprovaloftheimplementationofsuchresolutionbytheCourtascontemplatedinsection115(3)(a)oftheCompaniesAct;and

5.2.2.2 if applicable,Altech not treating the aforesaid resolution as a nullity, as contemplated insection 115(5)(b)oftheCompaniesAct

5.2.3 Altech Shareholders not having exercisedAppraisal Rights by giving valid demands to this effect toAltech,intermsofsection164(7)oftheCompaniesAct,inrespectofmorethan5%oftheAltechShareswithin the20BusinessDayperiodcontemplated insection164(7)of theCompaniesAct,providedthat,intheeventthatanyAltechShareholdersgivenoticeobjectingtotheScheme,ascontemplated

16

in section 164(3)of theCompaniesAct, and thoseAltechShareholders voteagainst the resolutionproposedattheSchemeMeetingtoapprovetheScheme,butdosoinrespectofnomorethan5%oftheAltechShares,thisConditionPrecedentshallbedeemedtohavebeenfulfilledatthetimeoftheSchemeMeeting;and

5.2.4 bythedateonwhicheachoftheabovementionedConditionsPrecedentarefulfilledorwaived(asthecasemaybe),anadverseeffect,fact,circumstancewhichisormightreasonablybeexpected(aloneortogetherwithanyothersuchadverseeffect, factorcircumstance)tobematerialwithregardtotheoperations,continuedexistence,business,condition,assetsandliabilitiesoftheAltechGroup(whetherasaconsequenceoftheSchemeornot)hasnotoccurred.ForthepurposesofthisConditionPrecedent,tobematerial,theadverseeffect,factorcircumstancemustconstituteachangeinthelawsofSouthAfrica(including,withoutlimitation,lawsrelatingtotaxation)whichhas(ormayreasonablybeexpectedtohave)amaterialadverseeffectupontheSchemesuchthattheeffectivedirectorindirectcostoftheSchemetoAltron,includingbutnotlimitedtotheSchemeConsiderationwouldincreaseby15%(fifteenpercent)ormore.

TheConditionsPrecedentotherthanofaregulatorynaturearestipulatedforthebenefitofAltronandmaybewaivedbyAltroninitssolediscretionbynoticeinwritingtoAltech.ConditionsPrecedentthatareofaregulatorynaturecannotbewaived.

5.3 Scheme Consideration

5.3.1 TheSchemeConsiderationpayablebyAlfin toSchemeParticipants, in theeventof theConditionsPrecedenttotheSchemebeingfulfilled(orwaived)andtheSchemebecomingoperative,willbesettledasto:

5.3.1.1 R47.50 in cash for every Scheme Share held by a Scheme Participant on the SchemeConsiderationRecordDate;and/or

5.3.1.2 SchemeParticipantsmayelecttoreceiveallorpartoftheSchemeConsiderationintheformofAltronParticipatingPreferenceSharesintheratioof2.22AltronParticipatingPreferenceSharesforeverySchemeShareheldbyaSchemeParticipantontheSchemeConsiderationRecordDate,providedthattheaggregateShareConsiderationwillbelimitedtoamaximumof50%oftheaggregateSchemeConsideration,and

providedfurtherthat(i)Cash-OnlyAltechShareholderswillbedeemedtohaveelectedtoreceivetheCashConsiderationirrespectiveoftheiractualelection;(ii)intheabsenceofanelectionbeingreceivedbytheTransferSecretariesby12:00ontheSchemeConsiderationRecordDate,SchemeParticipants(other than Cash-OnlyAltech Shareholders) will be deemed to have elected to receive the CashConsideration;and(iii)DissentingShareholderswhobecomeSchemeParticipantsafter theSchemeConsiderationRecordDate,ascontemplatedinparagraph5.6below,willbedeemedtohaveelectedtoreceivetheCashConsideration.

5.3.2 No fractionswill be issued and any fractionofAltronParticipatingPreferenceShares towhich anySchemeParticipantisentitledtoaftertheconversionofalloftheSchemeSharesheldbysuchSchemeParticipantwill,ifitcomprises0.5ormoreofanAltronParticipatingPreferenceShareberoundedup,otherwisewillberoundeddowntothenearestwholeAltronParticipatingPreferenceShare.

5.3.3 IntheeventthatSchemeParticipants,inaggregateelecttoreceivetheShareConsiderationinexcessoftheShareConsiderationLimitation,suchexcesswillbepaidintheformoftheCashConsiderationandthecalculationoftheShareConsiderationcomponentoftheSchemeConsiderationwillbebasedontheformulasetoutbelow:

A = B x dC

Where:

A = The Share Consideration to be received by a Scheme Participant, in the event that SchemeParticipants in aggregate elect to receive the Share Consideration in excess of the ShareConsiderationLimitation

B = ThenumberofAltronParticipatingPreferenceShares thatcomprise theShareConsiderationLimitation

C = TheaggregateShareConsiderationelectedbySchemeParticipants

d = TheShareConsiderationelectedbyaSchemeParticipant

17

5.3.4 SchemeParticipantswhodonotmakeavalidelectionintermsoftheSchemewillbedeemedtohaveelectedtoreceivetheCashConsiderationinrespectof100%oftheirSchemeShares.

5.4 Settlement of the Scheme Consideration

5.4.1 Subjecttoparagraphs5.4.2and5.4.4belowandsubjecttotheSchemebecomingoperative,SchemeParticipantswillbeentitledtoreceivetheSchemeConsideration.

5.4.2 Settlementof theSchemeConsideration issubject totheExchangeControlRegulations, thesalientprovisionsofwhicharesetoutinAnnexure6tothisCircular.

5.4.3 AltechoritsagentswilladministerandeffectpaymentoftheCashConsiderationand/orwilltransferorposttheShareConsiderationtoSchemeParticipants.

5.4.4 SchemeParticipantswhoholdDematerialisedAltechShareswill:

5.4.4.1 if theyarenotDissentingShareholdersontheSchemeConsiderationRecordDate,havetheiraccountsheldattheirCSDPscreditedwiththeSchemeConsiderationanddebitedwiththeSchemeSharestheyaretransferringtoAlfinpursuanttotheSchemeontheOperativeDate;or

5.4.4.2 if theyare stillDissentingShareholderson theSchemeConsiderationRecordDate,havetheiraccountsheldat theirCSDPscreditedwith theSchemeConsiderationanddebitedwiththeSchemeSharesthattheyaretransferringtoAlfinpursuanttotheSchemewithinfive  Business Days of the date on which they cease to be Dissenting Shareholders andbecomeSchemeParticipants.

5.4.5 SchemeParticipantswhoholdCertificatedAltechSharesandwhoarenotDissentingShareholdersontheSchemeConsiderationRecordDate,will:

5.4.5.1 iftheyhavesurrenderedtheirDocumentsofTitleandhavecompletedaformofelection,surrender and transfer (blue)which is delivered to theTransfer Secretariesonor before12:00ontheSchemeConsiderationRecordDate,have their sharecertificates in respectoftheShareConsiderationand/orchequesinrespectoftheCashConsiderationpostedtothem,attheirrisk,withinfiveBusinessDaysoftheOperativeDate,unlesstheyhaveelectedto receivetheCashConsiderationbywayofanEFTbycompletingtherelevantsectionoftheformofelection,surrenderandtransfer(blue),inwhichcasetheCashConsiderationwillbepaidtothemontheOperativeDatebywayofEFT;

5.4.5.2 if they surrender their Documents ofTitle and complete a form of election, surrenderand transfer (blue) and deliver it to theTransfer Secretaries after 12:00 on the SchemeConsiderationRecordDate,havetheirsharecertificatesinrespectoftheShareConsiderationand/orchequesinrespectoftheCashConsiderationpostedtothem,attheirrisk,orpaidtothembywayofanEFT(ifthisoptionwasselectedontheformofelection,surrenderandtransfer(blue)),within5BusinessDaysoftheTransferSecretariesreceivingtheirDocumentsofTitleandcompletedformofelection,surrenderandtransfer(blue).

5.4.6 SchemeParticipantswho holdCertificatedAltech Shares andwho areDissenting Shareholders onthe Scheme Consideration Record Date, but who become Scheme Participants after the SchemeConsiderationRecordDate,willneedtosurrendertheirDocumentsofTitle,togetherwithcompletedformsofelection, surrenderandtransfer (blue), to theTransferSecretaries,andwillhavetheir sharecertificates in respect of the ShareConsideration posted to them, at their risk,within five BusinessDaysofthelaterofthedateonwhichtheTransferSecretariesreceivetheirDocumentsofTitleandcompleted formofelection, surrender and transfer (blue) and thedateonwhich they cease tobeDissentingShareholders.Asnotedinparagraph5.3.1above,suchSchemeParticipantswillbedeemedtohaveelectedtoreceivetheCashConsideration.

5.4.7 Where,onorsubsequenttotheOperativeDate,aperson,whowasnotaregisteredholderofSchemeSharesontheSchemeConsiderationRecordDate,tenderstotheTransferSecretariesDocumentsofTitletogetherwithadulystampedformofelection,surrenderandtransfer(blue),purportingtohavebeenexecutedbyoronbehalfoftheregisteredholderofsuchSchemeSharesand,providedthattheSchemeConsideration shall not alreadyhavebeenpostedordelivered to the registeredholderofthe relevantSchemeShares,thensuchtransfermaybeacceptedbyAltechasifitwereavalidtransfertosuchpersonoftheSchemeSharesconcerned,providedthatAltronandAltechhavebeen,ifsorequiredbyeitherorbothofthem,providedwithanindemnityontermsacceptabletotheminrespectofsuchSchemeConsideration.

18

5.4.8 TheSchemeConsiderationwillbepaidtoSchemeParticipants,infull,inaccordancewiththetermsoftheSchemewithoutregardtoanylien,rightofset-off,counterclaimorotheranalogousrighttowhichAltechorAltronmayotherwisebe,orclaimtobeentitled.

5.4.9 Iftheinformationregardingauthoriseddealersisnotgivenorwritteninstructionstothecontraryareprovidedbutnoaddress isgiven,asrequiredintermsofparagraphs2.2and2.3ofAnnexure6,theSchemeConsiderationwillbeheldintrustbyAltech,ortheTransferSecretariesonbehalfofAltech,fortheSchemeParticipantsconcerned,pendingreceiptofthenecessary informationor instructions.No interestwillbepaidontheSchemeConsiderationsoheld.

5.5 Effects of the Scheme

TheeffectoftheSchemewillbethatAlfinwill,witheffectfromtheOperativeDate,becometheregisteredandbeneficialownerofalltheSchemeShares.

5.6 dissenting Shareholders

AltechShareholdersareherebyadvisedoftheirAppraisalRightsintermsofsection164oftheCompaniesAct:

5.6.1 AltechShareholderswhowishtoexercisetheirrightsintermsoftheaforementionedsectionoftheCompaniesAct are required, before the special resolution to approve the Scheme is voted on atthe SchemeMeeting,togivenoticetotheCompany inwritingobjectingtothespecialresolution intermsofsection164(3)oftheCompaniesAct.

5.6.2 IfthespecialresolutionapprovingtheSchemeisadoptedbytheCompany,theCompanyisrequiredintermsofsection164(4)oftheCompaniesAct,within10BusinessDaysaftertheCompanyadoptsthespecialresolution,tosendanoticetoAltechShareholderswhogavewrittennoticetotheCompanyobjectingtothespecialresolutionanddidnotwithdrawsuchwrittennoticeorvoteinsupportofthespecialresolution,notifyingthemthatthespecialresolutionhasbeenadopted.

5.6.3 Altech Shareholders who gave written notice to the Company in terms of section 164(1) of theCompaniesAct(andhavenotwithdrawnthatnotice),whovotedagainstthespecialresolutionapprovingtheSchemeandwhohavecompliedwithalltheproceduralrequirementssetoutinsection164may,intermsofsections164(5)to164(8)oftheCompaniesAct,within20BusinessDaysofreceivingnoticefromtheCompanyintermsofsection164(4)oftheCompaniesAct,demandthattheCompanypaythemafairvaluefortheAltechSharesheldbythatAltechShareholderandinrespectofwhichtheyhavegiventheaforesaidwrittennotice.

5.6.4 If the Company receives a demand in terms of sections 164(5) to 164(8) of the CompaniesActand suchdemand is notwithdrawnby theOperativeDate, theCompany shall, in accordancewithsection 164(11)oftheCompaniesAct,within5BusinessDaysoftheOperativeDate,makeanoffertothoseAltechShareholderstopurchasesuchAltechShares.

5.6.5 ADissentingShareholderwhohassentademandintermsofsections164(5)to164(8)maywithdrawthatdemandbeforeAltechmakesanofferinaccordancewithsection164(11)oftheCompaniesActorifAltechfailstomakesuchanoffer.IfaDissentingShareholdervoluntarilywithdrawsitsdemandmadeintermsofsections164(5)to164(8)oftheCompaniesAct,itwillceasetobeaDissentingShareholderandwillbecomeaSchemeParticipantwhoseAltechShareswillbeacquiredbyAlfin,inaccordancewithparagraph5.4above,withretrospectiveeffectfromtheOperativeDate.

5.6.6 ADissentingShareholderwhohassentademandintermsofsections164(5)to164(8)hasnofurtherrightsinrespectoftheAltechSharesinrespectofwhichithasmadesuchdemand,otherthantobepaidthefairvalueofsuchAltechShares,unless:

5.6.6.1 that Dissenting Shareholder withdraws that demand before Altech makes an offer inaccordancewithsection164(11)oftheCompaniesAct;

5.6.6.2 Altechfailstomakeanofferinaccordancewithsection164(11)oftheCompaniesActandthatDissentingShareholderwithdrawsitsdemand;or

5.6.6.3 Altechmakesanofferinaccordancewithsection164(11)oftheCompaniesActbelowandtheDissentingShareholderallowssuchoffertolapse.

in which case thatAltech Shareholder’s rights shall, in terms of section 164(10) of the CompaniesAct bereinstatedwithoutinterruption.

19

5.6.7 The offer made in accordance with section 164(11) of the Companies Act will, in terms ofsection 164(12)(b)of theCompaniesAct, lapse if it is not acceptedby theDissenting Shareholderwithin30BusinessDaysafteritwasmade.IftheDissentingShareholderallowsthatoffertolapse,it willcease to be a Dissenting Shareholder and will become a Scheme Participant whoseAltech ShareswillbeacquiredbyAlfin, inaccordancewithparagraph5.4above,withretrospectiveeffectfromtheOperative Date.

5.6.8 ADissentingShareholderwhoacceptsanoffermadeintermsofsection164(11)oftheCompaniesActwillbecomeanExcludedDissentingShareholderandwillnotparticipateintheScheme.The DissentingShareholder must thereafter, if it (i) holds Certificated Altech Shares tender the Documents ofTitle inrespectofsuchCertificatedAltechSharestoAltechortheTransferSecretaries,or(ii)holdsDematerialisedAltechShares, instruct itsCSDPorBrokertotransfer thoseAltechSharestoAltechor theTransfer Secretaries.Altechmust pay thatDissenting Shareholder the agreed amountwithin10 BusinessDaysaftertheDissentingShareholderhasacceptedtheofferandtenderedtheDocumentsofTitleordirectedthetransfertoAltechoftheDematerialisedAltechShares.

5.6.9 ADissentingShareholderwhoconsiderstheoffermadebyAltechinaccordancewithsection164(11)oftheCompaniesActtobeinadequate,may,inaccordancewithsection164(14)oftheCompaniesAct,applytoaCourttodetermineafairvalueinrespectoftheAltechSharesthatwerethesubjectofthatdemand,andanorderrequiringAltechtopaytheDissentingShareholderthefairvaluesodetermined.TheCourtwill,inaccordancewithsection164(15)(v)oftheCompaniesAct,beobligedtomakeanorderrequiring:

5.6.9.1 theDissentingShareholderstoeitherwithdrawtheirrespectivedemandsortotendertheirAltechSharesascontemplatedinparagraph5.6.8;and

5.6.9.2 AltechtopaythefairvalueinrespectoftheAltechShares(asdeterminedbytheCourt)toeachDissentingShareholderwhotendersitsAltechShares,subjecttoanyconditionstheCourtconsidersnecessarytoensurethatAltechfulfillsitsobligationsundersection164oftheCompaniesAct.

5.6.10 IfpursuanttotheorderoftheCourt,anyDissentingShareholderwithdrawsitsdemand,theDissentingShareholderwillceasetobeaDissentingShareholderandwillbecomeaSchemeParticipantwhoseAltechShareswillbeacquiredbyAlfin,inaccordancewithparagraph5.4above,withretrospectiveeffectfromtheOperativeDate.

5.6.11 If,pursuanttotheorderof theCourt,aDissentingShareholdertenders itsAltechSharestoAltech,suchDissentingShareholderwillbecomeanExcludedDissentingShareholderandwillnotparticipateinthe Scheme.

5.6.12 A copy of section 164 of the CompaniesAct, which sets out theAppraisal Rights, is included inAnnexure 8tothisCircular.

5.7 Foreign Shareholders and Exchange Control regulations

Annexure6tothisCircularcontainsasummaryoftheExchangeControlRegulationsastheyapplytoSchemeParticipants.SchemeParticipantswhoarenotresidentin,orwhohavearegisteredaddressoutsideofSouthAfrica,mustsatisfy themselvesas tothe fullobservanceof the lawsofanyrelevant territoryconcerningthereceiptoftheSchemeConsideration,includingobtaininganyrequisitegovernmentalorotherconsents,observinganyotherrequisiteformalitiesandpayinganyissue,transferorothertaxesdueinsuchjurisdiction.Ifindoubt,SchemeParticipantsshouldconsulttheirprofessionaladvisersimmediately.IfthereceiptbyaSchemeParticipantoftheShareConsiderationwouldotherwiserequireAltron,Alfinand/orAltechtocomplywithfilingand/orotherregulatoryobligationsinthejurisdictioninwhichsuchSchemeParticipantisresident,itwillbedeemedtohaveelectedtoreceivetheCashConsideration.

5.8 Funding of the Scheme Consideration

5.8.1 Share Consideration

Altron has confirmed to theTRP that it has sufficient authorised and unissuedAltron ParticipatingPreferenceSharesavailableinordertoissuesomanynewAltronParticipatingPreferenceSharesasmayberequiredtofullysatisfytheShareConsideration.

20

5.8.2 Cash Consideration

AlfinhasdeliveredanirrevocableandunconditionalbankguaranteefromABSABankLimitedtotheTRPincompliancewithRegulations111(4)and111(5)oftheTakeoverRegulations.TheaggregateamountofthebankguaranteeissufficientforthepurposeoffullysatisfyingtheCashConsideration.

5.9 restricted jurisdictions

5.9.1 TotheextentthatthedistributionofthisCircularincertainjurisdictionsoutsideofSouthAfricamayberestrictedorprohibitedbythelawsofsuchforeignjurisdiction,thenthisCircularisdeemedtohavebeenprovidedforinformationpurposesonlyandneithertheAltechBoardnortheAltronBoardacceptanyresponsibilityforanyfailurebyAltechShareholderstoinformthemselvesabout,andtoobserve,anyapplicablelegalrequirementsinanyrelevantforeignjurisdiction.

5.9.2 AltechShareholderswhoareindoubtastotheirpositionshouldconsulttheirprofessionaladvisers.

6. Pro forma EArNiNgS ANd NET ASSET vALuE EFFECTS pErTAiNiNg TO ThE SChEmE

6.1 Altech

6.1.1 ThefinancialeffectsforAltechShareholderswhoelecttoreceivetheCashConsiderationarepresentedbelow:

Cash Consideration

Before theScheme(Note 1)

After theScheme(Note 2)

Change%

30-dayVWAP(cents)(Note1) 3622 4750 31

Closingprice(cents)(Note2) 3439 4750 38

Notes:

1. The30-dayVWAPofanAltechSharetradedontheJSEuptothedateofthefirstcautionaryannouncement,namely22March2013.

2. TheclosingpriceofanAltechSharetradedontheJSEasat16May2013,beingthelastbusinessdayimmediatelypriortothedateoftheFirmIntentionAnnouncement.

6.1.2 ThefinancialeffectsforAltechShareholderswhoelecttoreceivetheShareConsiderationarepresentedbelow:

TheunauditedandunreviewedproformafinancialeffectsoftheSchemeonAltechShareholders,forwhichtheAltechBoardisresponsible,areprovidedforillustrativepurposesonlytoprovideinformationabouthow the Scheme will affect the financial position of theAltech Shareholders who elect the ShareConsideration,assumingthattheSchemeConsiderationissettledasto50%CashConsiderationand50% Share Consideration, by illustrating the effect thereof on the basic earnings per share (“BasicEPS”)anddilutedbasicearningspershare(“DilutedBasicEPS”)forcontinuingoperations,discontinuedoperationsandtotaloperationsandHEPSanddilutedheadlineearningspershare(“DilutedHEPS”)fortotaloperations,oftheAltechSharesexchangedforAltronParticipatingPreferenceSharesattheSwitchRatio,asiftheSchemehadbecomeoperativeon1March2012,and,forthepurposeofnetassetvaluepershare(“NAVPS”)andnettangibleassetvaluepershare(“NTAVPS”)asiftheSchemehadbecomeoperativeon28February2013.Theseproformafinancialeffectsarebasedonthe12monthauditedfinancialresultsforAltechto28February2013.BecauseoftheirnaturetheunauditedandunreviewedproformafinancialeffectsmaynotgiveafairpresentationofAltechShareholders’financialpositionandperformance following the implementationof the Scheme.There are nopost balance sheet eventswhichrequireadjustmenttotheproformafinancialeffects.

21

Share Consideration

Before theScheme(Note 1)

After theScheme(Note 2)

Change%

Continuing operationsBasicEPS(cents) 369 365 (1)DilutedBasicEPS(cents) 353 353 –

discontinued operationsBasicEPS(cents) (1330) (805) 39DilutedBasicEPS(cents) (1273) (779) 39

Total operationsBasicEPS(cents) (961) (440) 54DilutedBasicEPS(cents) (920) (426) 54HEPS(cents) 268 300 12DilutedHEPS(cents) 256 290 13NAVPS(cents) 849 2569 203NTAVPS(cents) 409 1569 284

Weightedaveragenumberofsharesinissue(million) 98 358 n/aDilutedaveragenumberofsharesinissue(million) 102 370 n/aNumberofsharesinissue(million) 98 358 n/a

Notes:

1. Thefinancialinformationinthe“BeforetheScheme”columnhasbeenpreparedbasedonAltech’sauditedconsolidatedfinancialresultsforthe12monthsended28February2013.

2. Thefinancialinformationincludedinthe“AftertheScheme”columnhasbeenderivedbytakingthe“AftertheScheme”financialeffects forAltron,as illustrated inparagraph6.2below,andmultiplyingtheseresultsbytheSwitchRatiotoprovide thepro forma financial effects for thoseAltech Shareholders who elect the Share Consideration. Once-offtransactioncostsincurredwillbepaidoutofavailablecashresources.

3. For theavoidanceofdoubt,weightedaveragenumberof shares in the“Before theScheme”columnrepresents thenumber of shares held byAltech Shareholders inAltech before the Scheme has been implemented. Theweightedaveragenumberof shares in the “After theScheme” column represents the total numberof shares heldbyAltronShareholdersincludingthoseAltechShareholderswhoelectedtheShareConsideration.

The full pro forma financial information is set out in Annexure 2 and the independent reportingaccountants’assurancereportthereonissetoutinAnnexure3tothisCircular,respectively.

6.2 Altron

TheunauditedandunreviewedproformafinancialeffectsoftheSchemeonAltronShareholders,forwhichtheAltronBoardareresponsible,areprovidedforillustrativepurposesonlytoprovideinformationabouthowtheSchemewillaffectthefinancialpositionoftheAltronShareholdersbyillustratingtheeffectthereofontheBasicEPSandDilutedBasicEPSforcontinuingoperations,discontinuedoperationsandtotaloperationsandHEPSandDilutedHEPSfortotaloperationsofAltronasiftheSchemehadbecomeoperativeon1March2012,and,for thepurposeofNAVPSandNTAVPSofAltron,as if theSchemehadbecomeoperativeon28February2013. Because of their nature the unaudited and unreviewed pro forma financial effects may not give a fairpresentationofAltron’s financial position, changes in equity, resultsofoperations andperformance after theScheme.TheunauditedandunreviewedproformafinancialeffectshavebeencompiledusingaccountingpoliciesthatcomplywithIFRSandthatareconsistentwiththoseappliedintheauditedconsolidatedfinancialstatementsofAltronforthe12monthsended28February2013.Therearenopostbalancesheeteventswhichrequireadjustmenttotheproformafinancialeffects.

22

Before theScheme(Note 1)

After theScheme(Note 2)

Change%

Continuing operationsBasicEPS(cents) 158 164 4DilutedBasicEPS(cents) 153 159 4

discontinued operationsBasicEPS(cents) (252) (362) (44)DilutedBasicEPS(cents) (239) (350) (47)

Total operationsBasicEPS(cents) (94) (198) (110)DilutedBasicEPS(cents) (86) (191) (123)HEPS(cents) 136 135 (1)DilutedHEPS(cents) 133 130 (2)NAVPS(cents) 1498 1155 (23)NTAVPS(cents) 988 706 (28)

Weightedaveragenumberofsharesinissue(million) 316 358 13Dilutedaveragenumberofsharesinissue(million) 319 370 16Numberofsharesinissue(million) 317 358 13

Notes:

1. Thefinancialinformationinthe“BeforetheScheme”columnhasbeenpreparedbasedonAltron’sauditedconsolidatedfinancialresults forthe12monthsended28February2013. Intermsof IAS27–ConsolidatedandSeparateFinancialStatements,AltronalreadyexercisescontroloverAltechbyvirtueofitsshareholdinginAltech.Consequently,Altech’sresultsareconsolidatedintoAltron’sstatementofcomprehensiveincomeandbalancesheet.

2. Thefinancialinformationincludedinthe“AftertheScheme”columnhasbeenpreparedbasedonAltron’sauditedconsolidatedfinancialresultsforthe12monthsended28February2013,takingintoaccountthefollowing:

2.1 TheSchemeConsiderationelectedbyAltechShareholdersisassumedtocompriseof50%CashConsiderationand50%ShareConsideration.TheCashConsiderationisfundedbydebtofR894millionandtheShareConsiderationbytheissueof41.8millionnewAltronParticipatingPreferenceShares(increasingbothweightedaverageanddilutedaveragenumberof shares in issue) to thevalueofR894million (basedonAltron’s30-dayVWAPup to thedateof the first cautionaryannouncementon22March2013);

2.2 Anaftertaxdebtfundingrateof5.46%hasbeenused.Debtfundingisassumedtoberepayableoverfiveyears;

2.3 Assumedonce-off transactioncosts for theAltronGroupamountingtoR20millionhavebeencapitalised inaccordancewithIAS32–FinancialInstruments:PresentationanddisclosedinequityinaccordancewithIAS1–PresentationofFinancialStatements. These amounts will be paid out of available cash resources and are attributable to the various professionaladvisers,issuersofdebt,regulatoryauthoritiesandprintingcosts;

2.4 TheexcessoftheSchemeConsiderationpaidtoAltechShareholdersoverthenon-controllinginterestinAltech(basedonAltronmanagement’sbestestimateattheLastPracticableDate)amountstoR1469millionat28February2013,andhas,inaccordancewiththerequirementsofIAS27–ConsolidatedandSeparateFinancialStatements,beendeducteddirectlyfromtheequityattributabletoAltronShareholders;

2.5 Therearenopostbalancesheeteventswhichrequireadjustmentoftheproformafinancialeffects;

2.6 Alladjustments,withtheexceptionoftransactioncosts,areexpectedtohaveacontinuingeffect.

7. ALTECh LONg-TErm ShArE BASEd iNCENTivES

Altech has agreed not to issue any further awards in terms of bothTheAltechGroup Share IncentiveTrust andTheAltech2009SharePlanfollowingthedateoftheFirmIntentionAnnouncementunlessotherwiseagreedbetweenAltronandAltech.

Altechhas prior to1March2013 issued awards to eligible employees andofficers (the“participant(s)”) in termsofTheConditionalRightsScheme (“ConditionalRights”) and in termsofTheAltech2009SharePlanpursuant tothebonussharemethod,theperformancesharemethodandtheshareappreciationrightsmethod(“AltechShareAwards”).

7.1 ForthepurposeoftheScheme,eachparticipantwillberequestedtoprovideawrittenwaiverofhisorherAltechShareAwardsbywayofawrittencommunicationfromtheAltechBoardtobedeliveredshortlyafterthedateofthisCircular.InconsiderationfortheprovisionoftheaforesaidwrittenwaiverandinlieuofhisorhererstwhileAltechShareAwards,eachparticipantwillreceivenewawardsintermsofTheAltron2009SharePlan(the“AltronShareAwards”).TheAltronShareAwardswillbeissuedbasedonacalculationofthelong-term

23

sharebasedincentivevalueoftherelevantparticipant’sAltechShareAwardsasat22March2013.ThedetailedmethodologyoftheaforesaidcalculationwillbesetoutinthelettertobeaddressedtoeachparticipantbytheAltechBoard.TheAltronShareAwardsofeachparticipantwill,tothefullestextentpossibleinthecircumstances,takeaccountoftheaforesaidlong-termsharebasedincentivevalueaswellastheelapsedvestingperiodsandfulfilledperformancecriteriaapplicabletoeachparticipant’sAltechShareAwards.

7.2 ForthepurposeoftheSchemeand,takingintoaccountthefactthattheawardpriceofallConditionalRightswhichhavebeenissuedbyAltechandwhichhavenotbeenexercised,iscurrentlyhigherthantheexercisepriceof thoseConditionalRights(that is, there isnobenefit inrespectofwhichaparticipantcanexercisevestedConditionalRights),eachparticipantwillberequestedtoprovideawrittenwaiverofhisorherConditionalRights(whetherornotvested)bywayofawrittencommunicationfromtheAltechBoardtobedeliveredshortlyafterthedateofthisCircular.

FollowingtheimplementationoftheSchemeandreceiptoftheaforementionedwrittenwaiversfromallparticipants,TheAltechGroupShareIncentiveTrustandTheAltech2009SharePlanwillbediscontinuedandparticipantswill,subjecttotheapprovalbyAltronShareholdersofproposedamendmentstoTheAltron2009SharePlanascontemplatedintheAltronCircular,henceforthreceiveAltronlong-termsharebasedincentivesatthediscretionoftheAltronBoard.

8. SuSpENSiON ANd TErmiNATiON OF ALTECh LiSTiNg

SubjecttotheSchemebecomingoperative,theJSEhasgrantedapprovalforthesuspensionofthelistingontheJSEoftheAltechOrdinaryShareswitheffectfromthecommencementoftradeontheJSEonMonday,12August2013andtheterminationofthelistingontheJSEoftheAltechOrdinarySharesfromthecommencementoftradeonTuesday,20August2013.

9. mANAgEmENT

ItisnotanticipatedthattheemolumentsofthecurrentDirectorsofAltech,whomayremainontheAltechBoard,willbemateriallyaffectedbytheScheme.ThebusinessofAltechwillcontinuetobemanagedandoperatedinaccordancewiththestatusquoaftertheimplementationoftheScheme.AnyremunerationreceivedbytheDirectorsofAltechintheformofAltechSharesmayinfuturebeawardedintheformofAltronParticipatingPreferenceShares.

10. iNTErESTS OF dirECTOrS OF ALTECh iN ALTrON ShArES

AttheLastPracticableDate, theDirectorsofAltechheld,directlyand indirectly,beneficial interests in,40609118AltronOrdinarySharesand136615AltronParticipatingPreferenceShares,representingapproximately39.6%and0.1%ofthetotalissuedordinaryandparticipatingpreferencesharecapitalofAltron.ThedirectandindirectbeneficialinterestsoftheDirectorsofAltechareasfollows:

Altron Ordinary Shares

Beneficial Total Totaldirector direct indirect shares %

Non-executiveDrWPVenter 8709770 31247827 39957597 39.0DrHASerebro 642721 8800 651521 0.6

9 352 491 31 256 627 40 609 118 39.6

Altron participating preference Shares

Beneficial Total Totaldirector direct indirect shares %

Non-executiveAMRSmith 11828 11828 0.0REVenter 90732 90732 0.0DrWPVenter 34055 34055 0.0

102 560 34 055 136 615 0.1

24

Trades inAltronOrdinarySharesentered intoby theDirectorsofAltechduring theperiodbeginning sixmonthsbeforetheOfferPeriodandendingontheLastPracticableDateareasfollows:

director date Altron Ordinary Shares Nature

DrHASerebro 14June2013 8800 Purchasesofshares

TradesinAltronParticipatingPreferenceSharesenteredintobytheDirectorsofAltechduringtheperiodbeginningsixmonthsbeforetheOfferPeriodandendingontheLastPracticableDateareasfollows:

director dateAltron participating preference Shares Nature

REVenter 4December2012 32716 Saleofshares

AMRSmith 3December2012 11828 VestinganddeliveryofsharesperTheAltron2009SharePlan

11. iNTErESTS OF dirECTOrS OF ALTECh iN ALTECh OrdiNAry ShArES

AttheLastPracticableDate,theDirectorsofAltechheld,directlyandindirectly(otherthanindirectlythroughAltron),beneficialinterestsin32800AltechOrdinaryShares,representingapproximately0.034%ofthetotalissuedordinarysharecapitalofAltech.ThedirectandindirectbeneficialinterestsoftheDirectorsofAltechareasfollows:

Beneficial Total Total

director direct indirect shares %

Non-executiveDrHASerebro 4000 3300 7300 0.0DrWPVenter 25500 25500 0.0

29 500 3 300 32 800 0.0

TheDirectorsofAltechdidnotengageinanydealingsinAltechOrdinarySharesduringtheperiodbeginningsixmonthsbeforetheOfferPeriodandendingontheLastPracticableDate.

12. OThEr ArrANgEmENTS

Noarrangements,agreementsorunderstandingswhichhaveanyconnectionwithordependenceontheSchemeexistbetweenAltech,AltechShareholdersorAltronandAlfinoranypersonactinginconcertwiththem,oranydirectorofAltechoranypersonwhowasadirectorofAltechwithintheperiodcommencing12monthspriortothedateoftheFirmIntentionAnnouncement,oranypersonwhoisorwasanAltechShareholderwithintheaforementionedperiod.

13. irrEvOCABLE uNdErTAKiNgS ANd LETTEr OF COmFOrT

13.1 AltronhasreceivedirrevocableundertakingsandaletterofcomfortfromcertainAltechShareholderstovotethestatednumberofAltechSharesheldbythemasatthedateoftheSchemeMeetingeitherasaprincipaloronbehalfofclients,infavouroftheSchemeandtheresolutionstobeproposedattheSchemeMeeting.DetailsofshareholdingsofthesepartiesasattheLastPracticableDatearesetoutbelow:

party

Shares subjectto undertaking

at thesignature dateof irrevocableundertaking1

Sharessubject to

undertaking at Last

practicabledate

percentageholdingat Last

practicabledate

%

Effectivevoting rights

for theScheme at

Lastpracticable

date%

CoronationAssetManagement 8189873 10903676 11.2 29.0PublicInvestmentCorporation2 6168834 6168834 6.3 16.4InvestecAssetManagement 5136059 – – –SanlamInvestmentManagement 2621372 2586074 2.6 6.9

22241909 19658584 20.1 52.2

25

Notes:

1. The shareholding of Altech Shares reflected in the irrevocable undertakings provided by Altech Shareholders may differ to theirshareholdingofAltechSharesasattheLastPracticableDateduetotradinginAltechSharesbetweenthesignaturedateoftheirrevocableundertakingsandtheLastPracticableDate.

2. ThePublicInvestmentCorporationinitscapacityasrepresentativeoftheGovernmentEmployeesPensionFundhasprovidedaletteracomforttosupporttheSchemeandtovoteinfavourofallresolutionsattheSchemeMeetingtogiveeffecttotheScheme.

DealingsinAltechSharesfortheperiodbeginningsixmonthsbeforetheOfferPeriodandendingontheLastPracticableDatebypartieswhohaveprovidedirrevocableundertakingsaredetailedinAnnexure11tothisCircular.

14. iNTErESTS iN ALTrON ShArES By prOvidErS OF irrEvOCABLE uNdErTAKiNgS ANd ThE LETTEr OF COmFOrT

As at the Last PracticableDate, the followingparties as set out in paragraph13 aboveheld, directly or indirectly,beneficialinterestsinAltronOrdinarySharesandAltronParticipatingPreferenceShares.

Altron Ordinary Shares

party

Sharessubject to

undertaking

percentageholding

%

CoronationAssetManagement 6389995 6.2GovernmentEmployeesPensionFund 7859187 7.7InvestecAssetManagement 31830 0.0SanlamInvestmentManagement 2151608 2.1

Total 16432620 16.0

Altron participating preference Shares

party

Sharessubject to

undertaking

percentageholding

%

CoronationAssetManagement 50759968 23.8GovernmentEmployeesPensionFund 32035972 15.0InvestecAssetManagement 1707389 0.8SanlamInvestmentManagement 43768970 20.5

Total 128272299 60.0

15. OpiNiONS ANd rECOmmENdATiONS

15.1 Appointment of an independent Expert

TheAltechIndependentBoardhasappointedtheIndependentExpert,anindependentadviseracceptabletotheTRP,toprovideanindependentprofessionalexpert’sopinionregardingtheScheme,andtomakeappropriaterecommendationstotheAltechIndependentBoardintheformofafairandreasonableopinion.

15.2 report of the independent Expert

TheIndependentExperthasascontemplatedinRegulation110(3)oftheTakeoverRegulations,performedavaluationontheAltechSharesandavaluationontheAltronParticipatingPreferenceSharesascontemplatedinRegulation110(10).

ThereportoftheIndependentExpertalsoincludestheitemsrequiredbysection114(3)oftheCompaniesAct.

TakingintoconsiderationthetermsandconditionsoftheScheme,theIndependentExpertisoftheopinionthatsuchtermsandconditionsarefairandreasonabletoAltechShareholders.AltechShareholdersarereferredtoAnnexure1tothisCircularwhichsetsoutthefulltextofthereportoftheIndependentExpertregardingtheScheme.

26

15.3 views of the Altech independent Board

TheAltechIndependentBoard,afterdueconsiderationofthereportoftheIndependentExpertregardingtheScheme,andinaccordancewithitsresponsibilitiesintermsofregulation110oftheTakeoverRegulations,hasformedaviewoftherangeofthefairvalueoftheAltechSharesandtheAltronParticipatingPreferenceShares,whichaccordswiththevaluationrangecontainedintheIndependentExpert’sopinion.TheAltechIndependentBoardhasnotreceivedanyotheroffersduringtheOfferPeriodorwithinsixmonthsbeforetheOfferPeriod.The SchemeConsideration exceeds both the fair valueperAltech Share and the current tradedprice perAltechShare.

TheAltechIndependentBoard,takingintoaccountthereportoftheIndependentExpertregardingtheScheme,has considered the terms and conditions thereof, and are unanimously of the opinion that the terms andconditions of the Scheme are fair and reasonable toAltech Shareholders and, accordingly, recommend thatAltechShareholdersvoteinfavouroftheresolutionstobeproposedattheSchemeMeeting.

15.4 voting of the Altech Board

TheDirectorsofAltechwhoholdAltechOrdinarySharesintendtovotesuchAltechOrdinarySharesinfavouroftheScheme.

15.5 views of the Altron Board

AltronbelievesthattheSchemeisinthebestinterestsofbothAltronandAltechShareholders,aswellasotherstakeholdersofthebusinesses.Accordingly,AltronrecommendsthattheAltechShareholdersvoteinfavouroftheresolutionsrequiredtoapprovetheScheme.

16. dirECTOr’S rESpONSiBiLiTy STATEmENTS

16.1 Altech independent Board responsibility statement

TheAltechIndependentBoardacceptsresponsibilityfortheinformationcontainedinthisCirculartotheextentthatitrelatestoAltech.Tothebestofitsknowledgeandbelief,theinformationcontainedinthisCircularistrueandnothinghasbeenomittedwhichislikelytoaffecttheimportoftheinformation.

16.2 Altron responsibility statement

TheAltronBoardacceptsresponsibilityfortheinformationcontainedinthisCirculartotheextentthatitrelatestoAltron.Tothebestofitsknowledgeandbelief,theinformationcontainedinthisCircularistrueandnothinghasbeenomittedwhichislikelytoaffecttheimportoftheinformation.

17. CONSENTS

The sponsor, legal advisers, IndependentExpert, reportingaccountants toAltechand theTransferSecretarieshaveconsentedinwritingtoactinthecapacitiesstatedandtotheirnamesbeingstatedinthisCircularand,whereapplicable,to the inclusionof their reports in the form and context inwhich they have been reproduced in thisCircular inAnnexures1and3,andhavenot,priortotheLastPracticableDate,withdrawntheirconsentspriortopublicationofthisCircular.

18. COSTS

The followingexpensesandprovisionsareexpected,orhavebeenprovided forbyAltron in connectionwith theScheme.Allthefeespayabletothepartiesbelowareexclusiveofvalueaddedtax:

payable toAmount

(rand)

Altron feesInvestmentbankandtransactionalsponsorfees InvestecCorporateFinance 7000000Legaladviserfees ENS 1000000Reportingaccountantsfees KPMG 100000Printingandothercosts Ince 300000Debtcapitalraisingandguaranteefees ABSABankLimited 8000000JSEdocumentationfees JSE 21391JSElistingfees JSE 1900000

Subtotal 18 321 391

27

payable toAmount

(rand)

Altech feesLegaladviserfees HRL 100000Independentexpertfees PWC 1500000Printingandothercosts Ince 300000JSEdocumentationfees JSE 11555

Subtotal 1 911 555

Total 20 232 946

19. dOCumENTS AvAiLABLE FOr iNSpECTiON

CopiesofthefollowingdocumentswillbeavailableforinspectionduringnormalbusinesshoursattheregisteredofficeofAltech,from27June2013uptoandincludingthedateoftheSchemeMeeting:

• thememorandaofincorporationofAltech,AltronandtheirSubsidiaries;

• theopinionoftheIndependentExpert,togetherwithsections115and164oftheCompaniesActwhichhavebeenattachedtotheopinionoftheIndependentExpertasAnnexuresAandB,respectively(whichAnnexureAandAnnexureBareincludedinthecircularasAnnexure7andAnnexure8,respectively);

• the independent reporting accountants’ assurance reporton the compilationofpro forma financial informationpertainingtotheScheme;

• theAltechGroupannualfinancialstatementsforthethreeyearsended28February2013,29February2012and28February2011;

• theAltronGroupannualfinancialstatementsforthethreeyearsended28February2013,29February2012and28February2011;

• copiesoftheirrevocableundertakingsandlettersofcomfortreferredtoinparagraph13ofthisCircular ;and

• asignedcopyofthisCircular.

SignedonbehalfoftheAltechIndependentBoard

MLLeoka27June2013

SignedonbehalfoftheAltechBoard

CGVenter27June2013

SignedonbehalfoftheAltronBoard

REVenter27June2013

28

ANNEXurE 1

OpiNiON OF ThE iNdEpENdENT EXpErT

TheDirectorsAlliedTechnologiesLimitedWoodmeadNorthOfficePark54MaxwellDriveWoodmead2191

DearDirectors

OpiNiON ON ThE OFFEr By ALLiEd ELECTrONiCS COrpOrATiON LimiTEd BOArd TO ThE OrdiNAry ShArEhOLdErS OF ALLiEd TEChNOLOgiES LimiTEd

1. iNTrOduCTiON

Inanannouncementdated17May2013theAltechBoardannouncedthatithadreceivednoticeofafirmintentiontomakeanofferfromAltron’swhollyownedsubsidiary,Alfin,toacquiretheentireissuedordinarysharecapitalofAltechthattheAltronGroupdoesnotalreadyownbywayofaSchemeintermsofsection114(1)oftheCompaniesAct.TheSchemeistobeproposedbytheAltechBoardtotheAltechShareholdersintermsofwhich,shouldtheSchemebecomeoperative,AlfinwillacquiretheSchemeSharesheldbytheSchemeParticipants.

TheSchemeConsiderationpayablebyAlfintoAltechShareholderswillbesettledaseitherR47.50incashforeveryAltechShareheld,orAltechShareholdersmayelecttoreceiveall,orpartoftheSchemeConsiderationintheformofAltronParticipatingPreferenceSharesintheratioof2.22AltronParticipatingPreferenceSharesperAltechShareheldbythemlimitedtoamaximumof50%oftheaggregateSchemeConsiderationpayable.

TheOfferisclassifiedasanaffectedtransactionintermsoftheCompaniesAct.IntermsoftheCompaniesActandsections90and110of theRegulations the independent sub-committeeof theAltechBoard (Altech IndependentBoard)isrequiredtoobtainafairandreasonableopinionontheOfferfromanIndependentExpertandincludethisopinionintheCirculartoAltechShareholders.

TheAltechBoardrequestedPwCtoactasIndependentExpertintermsoftheCompaniesActandRegulationsandtoprovideanopinionastowhetherthetermsandconditionsoftheOfferarefairandreasonableasfarasAltechShareholdersareconcerned.

ThisopinionandtheresultsofourworkwillbeusedbytheAltechBoardsolelytosatisfytherequirementsoftheCompaniesActandtheRegulations.

2. dEFiNiTiON OF FAir ANd rEASONABLE

Marketvalueisdefinedastheestimatedamountforwhichanassetshouldexchangeonthedateofvaluationbetweenawillingbuyerandawillingsellerinanarm’slengthtransactionafterpropermarketingwhereinthepartieshadeachactedknowledgeably,prudentlyandwithoutcompulsion.

Atransactionwouldgenerallybeconsideredfairfromtheperspectiveofaselleriftheconsiderationpayablebythepurchasertothesellerisequalto,orgreaterthanthemarketvalueoftheassetsbeingsold.Fairnessisprimarilybasedonquantitativeissues.TheOfferwillbeconsideredfairifthepurchaseconsiderationisconsideredtobeequaltoorgreaterthanthemarketvalueoftheAltechSharessubjecttotheOffer.

The assessment of reasonableness is generally based on qualitative issues surrounding the particular transaction.Eventhoughtheconsiderationmaydifferfromthemarketvalueoftheordinarysharessubjecttothetransaction,atransactionmaystillbefairandreasonableafterconsideringothersignificantqualitativefactors.

This fairnessopiniondoesnotpurporttocater for individualAltechShareholders’positionsbutratherthegeneralbodyofAltechShareholderssubjecttotheOffer.AnAltechShareholder’sdecisionregardingfairnessofthetermsoftheOffermaybeinfluencedbyhisorherparticularcircumstances(forexampletaxationandthepricepaidfortheshares).ShouldanAltechShareholderbeindoubt,heorsheshouldconsultanindependentexpertastothemeritsofthetransaction,consideringhis/herpersonalcircumstances.

29

3. SOurCES OF iNFOrmATiON

Inthecourseofourvaluationanalysis,werelieduponfinancialandotherinformation,includingprospectivefinancialinformation,obtained fromAltechandAltronmanagement and fromvariouspublic, financial, and industry sources.Ourconclusionisdependentonsuchinformationbeingcompleteandaccurateinallmaterialrespects.

TheprincipalsourcesofinformationusedinperformingourvaluationofAltechandAltronincluded:

• AuditedannualfinancialstatementsofAltechandAltronforthefourfinancialyearsended28February2010to28February2013;

• Financial projections for Altech and its Subsidiaries/divisions for the years ending 28 February 2014 to28February2016;

• Financialprojections forAltronand itsmainoperatingSubsidiaries (BytesandPowertech) for theyearsending28February2014to28February2018;

• SelectedpubliclyavailableinformationrelatingtotheindustriesinwhichAltech,AltronandtheirSubsidiariesoperateobtainedfromAltechandAltronmanagementandpublicsources;

• DiscussionswithAltechmanagementatgroupandoperatingdivision/Subsidiarylevels;

• DiscussionswithAltronmanagement;

• ExtractsfromtheAltechandAltronboardpacksandsupportingpresentationsfortheyearended28February2013;

• SelectedavailableanalystreportsforAltechandAltron;

• Forourmacroeconomic,comparablecompanyandindustryresearchweusedthefollowingsources:

– IHS Global Insight, Nedbank, Business Monitor International, Investec, Bureau for Economic Research,AbsaCapital,InternationalMonetaryFund;

– Bloombergformarketsectorbetainformationrelatingtothecomparablecompaniesusedinourcostofcapitalcalculation;

– ThomsonOneandFactivaforfinancialdataonmarketcomparables;

– McGregorBFAforAltechsharetradinghistory;and

– thePwCValuationMethodologySurvey,2012Editionforinformationonvariousvaluationassumptions.

Wherepracticable,wehavecorroboratedthereasonablenessoftheinformationprovidedtousforthepurposeofsupportingouropinion,whetherinwritingorobtainedthroughdiscussionswithAltechandAltronmanagement.

OurproceduresandenquiriesdidnotconstituteanauditintermsoftheInternationalStandardsonAuditing.Accordingly,wecannotexpressanyopiniononthefinancialdataorotherinformationusedinarrivingatouropinion.

4. prOCEdurES

Ourprocedures included considering the relevant information includedon the terms and conditionsof theOffer,asdescribedinthecirculartoAltechShareholders.

Weperformedanindependentsum-of-the-partsvaluationofAltech.InperforminganindependentvaluationofAltech,theproceduresweperformedcomprisedthefollowing:

• WeconsideredtheprevailingeconomicandmarketconditionsintheindustriesinwhichAltechanditsSubsidiariesoperateasappropriate;

• WeconsideredpubliclyavailabletradingdataandsharepricesforAltechontheJSE;

• WehelddiscussionswithAltechmanagementoninformationandassumptionspertainingtoAltechthatweremadeavailablebyAltechmanagement;

• WereviewedAltechandthefinancialresultscoveringfiveyearsuptothedateofvaluation;

• Weconsidereddivisional financialandoperatingprojections includingrevenues,operatingmargins (e.g.earningsbeforeinterestandtaxes),andworkingcapitalinvestments,basedonAltech’shistoricaloperatingresults,expectationsandmanagementrepresentations.Theseprojectionsformedthebasisofourincomeapproach(discountedcashflow)valuationsofeachoftheoperatingentitieswithintheAltechGroup;

• WeobtainedandconsideredfinancialdataforpubliclytradedcompaniesengagedinthesameorsimilarlinesofbusinesstodevelopappropriatevaluationmultiplesandoperatingcomparisonstoapplytoAltech’sSubsidiaries;

• Weconsideredandappliedappropriatevaluationdiscounts/premiumstotheresultsofourvaluationanalysisasdeemedapplicable;and

• Weanalysedotherfactsanddataconsideredpertinenttothisvaluationtoarriveataconclusionofvalue.

30

Inordertocommentontheswapratioof2.22AltronParticipatingPreferenceSharesperAltechShareheld,weperformedanindependentvaluationreviewofAltron.Thepurposeofthisreviewwasnottoprovideanyrecommendationastowhetherthesharealternativewaspreferabletothe100%cashofferornot,butrathertoprovideAltechShareholderswhoelectthesharealternativewithdisclosureoftheproceduresweperformedtherein. Inthisregardahigh levelvaluationataconsolidatedgrouplevelwasperformedinrelationtoAltroninordertoprovideouropinionontheOffer.Theproceduresweperformedcomprisedthefollowing:

• WeconsideredtheprevailingeconomicandmarketconditionsintheindustriesinwhichAltronanditsSubsidiariesoperateasappropriate;

• WeconsideredpubliclyavailabletradingdataandsharepricesforAltronontheJSE;

• WehelddiscussionswithAltronmanagementoninformationandassumptionspertainingtoAltronthatweremadeavailablebyAltronmanagement;

• WereviewedAltronandthefinancialresultscoveringfiveyearsuptothedateofvaluation;

• We considered consolidated financial and operating projections including revenues, operating margins(e.g.earningsbefore interest and taxes), andworkingcapital investments,basedonAltech’shistoricaloperatingresults, expectations andmanagement representations.These projections formed thebasis of our consolidatedincomeapproach(discountedcashflow)valuation;

• WeobtainedandconsideredfinancialdataforpubliclytradedcompaniesengagedinthesameorsimilarlinesofbusinesstodevelopappropriatevaluationmultiplesandoperatingcomparisonstoapplytoAltrononaconsolidatedbasis;

• Weconsideredandappliedappropriatevaluationdiscounts/premiumstotheresultsofourvaluationanalysisasdeemedapplicable;and

• Weanalysedotherfactsanddataconsideredpertinenttothisvaluationtoarriveataconclusionofvalue.

5. vALuATiON ApprOACh

In considering theOffer, PwCperformed an independent valuationofAltech and a high level valuationofAltron.ThevaluationsofAltechandAltronwereperformedbyvaluingtheexistingbusinessesofAltechandAltronasgoingconcernsundercurrentmanagementandbusinessplans.

For thepurposesofourvaluationweused the incomeapproach (discountedcash flow)valuationasourprimaryapproach. Inaddition,weconsidered themarketapproach (basedon financialdata forcomparablepublicly tradedcompanies)asanalternativevaluationapproachtosupporttheresultsofourincomeapproachanalysis.

The valuation ofAltech was performed on a sum-of-the-parts basis, with separate income approach and marketapproach valuations performed forAltechAutopage Cellular,Altech Netstar, Multimedia, Electronics,Altech RadioHoldings,ITSolutionsandBusinessDevelopment.

WeperformedaconsolidatedincomeapproachandmarketapproachvaluationofAltron,combinedwithareviewofAltron’s tradinghistory, inordertocommentonthesharealternative. InperformingourvaluationofAltronweconsideredhistoricalandforecastperformanceofAltron’skeySubsidiaries,BytesTechnologyGroupProprietaryLimitedandPowerTechnologyHoldingsProprietaryLimitedinadditiontotheworkperformedonAltech.

Thekeyvaluationassumptionsconsideredinourincomeapproachincludedforecastgrowthrates,costofcapitalrates,perpetuitygrowthrates,forecastprofitabilitymargins,capitalexpenditureandworkingcapitalforecastsandselectedanalystforecastspertainingtotheoutlookforthesectorsinwhichthevariousSubsidiariesoperate.

6. ASSumpTiONS

Ouropinionisbasedonthefollowingkeyassumptions:

• Currenteconomic,regulatoryandmarketconditionswillnotchangematerially;

• AltechandAltronarenot involved in anyothermaterial legalproceedingsother than those conducted in theordinarycourseofbusiness;

• AltechandAltronhavenomaterialoutstandingdisputeswiththeSouthAfricanRevenueService;

• TherearenoundisclosedcontingenciesthatcouldaffectthevaluesofAltechandAltron;

• TheOfferwillnotgiverisetoanyundisclosedtaxliabilities;

• Forthepurposesofthisengagement,weassumedAltech’sandAltron’sexistingbusinessestobeongoingundercurrentbusinessplansandmanagement;and

• RepresentationsmadebyAltechandAltronmanagementduringthecourseofformingthisopinion.

31

7. OpiNiON

Ouropinionisbasedonthecurrenteconomic,market,regulatoryandotherconditionsandtheinformationmadeavailabletousbyAltechandAltronmanagementupto10June2013.Accordingly,subsequentdevelopmentsmayaffectthisopinion,whichweareundernoobligationtoupdate,reviseorre-affirm.Basedontheresultsofourproceduresperformed,ourdetailedvaluationworkandotherconsiderations,weconcludedthat:

• ThemarketvalueofanAltechShareisbetweenR45.69andR50.02pershareonamarketableminoritybasisasat30April2013.ThemostlikelyvalueisR47.85,whichapproximatesthemidpointofourvaluerange;and

• TherelativemarketvaluesofanAltronParticipatingPreferenceShareandanAltechSharearewithintherangeof2.12to2.62AltronParticipatingPreferenceSharesforeachAltechShareasat30April2013.Themostlikelyvalueis2.37,whichapproximatestothemidpointofourvaluerange.

TheCashConsiderationofR47.50offeredbyAlfinfallswithinthesuggestedrangecalculatedfromourvaluation.

Theratioof2.22AltronParticipatingPreferenceSharesperAltechShareheldiswithintherangeofrelativemarketvaluesofanAltronParticipatingPreferenceShareandanAltechShareascalculatedabove.

Inconsideringthevaluationrangeslistedaboveshareholdersshouldtakeparticularnoticeofthefollowingfactors:

• Theactualmarketvalueachievedinaspecifictransactionmaybehigherorlowerthanourestimateofthemarketvalue rangedepending upon the circumstancesof the transaction (for example strategic considerationsof thepurchaser),thenatureofthebusiness(forexamplethepurchaser’sperceptionofpotentialsynergies);and

• TheabovemarketvaluerangerepresentsastandalonevaluationofAltechandAltronundercurrentmanagement,strategiesandbusinessplans.

Basedontheresultsofourproceduresperformed,ourdetailedvaluationworkandotherconsiderations,subjecttotheforegoingassumptions,weareoftheopinionthattheOfferisfairandreasonabletotheAltechShareholders.

8. iNdEpENdENCE

WeconfirmthatPwCholdsnosharesinAltechorAltrondirectlyorindirectly.Wehavenointerest,directorindirect,beneficialornon-beneficial,inAltechorAltronorintheoutcomeoftheOffer.

Furthermore,weconfirmthatourprofessionalfeesofR1455630(excludingVAT),payableincash,arenotcontingentontheoutcomeoftheOffer.

9. LimiTiNg CONdiTiONS

Budgets/projections/forecastsrelatetofutureeventsandarebasedonassumptions,whichmaynotremainvalidforthewholeoftherelevantperiod.Consequentlythisinformationcannotbereliedupontothesameextentasthatderivedfromauditedfinancialstatementsforcompletedaccountingperiods.Weexpressnoopinionastohowcloselyactualresultswillcorrespondtothoseprojected/forecastbythemanagementofAltechandAltron.Inaddition,wehavenotconsideredtheaccountingimpactoftheimplementationoftheOfferontheresultsofAltronandAltech.

ThisletterandopinionareprovidedintermsoftheCompaniesAct.ItdoesnotconstitutearecommendationtoanyAltechShareholderonanymatterrelatingtotheOffer,norastotheacceptanceoftheOfferorarecommendationonthesharealternativeprovidedintheOffer.Therefore,itshouldnotberelieduponforanyotherpurpose.Weassumenoresponsibilitytoanyoneifthisletterandopinionareusedorrelieduponforanythingotherthanitsintendedpurpose.

The valuationof companies andbusinesses is not a precise science, and conclusions arrived at inmany caseswillnecessarily be subjective and dependent on the exercise of individual judgement. Further, whilst we consider ouropiniontobedefensiblebasedonthe informationavailabletousothersmayhaveadifferentviewandarriveatadifferentconclusion.

Yourssincerely

Jan groenewaldDirector

32

ANNEXurE 2

Pro forma FiNANCiAL iNFOrmATiON

ALTECh

TheunauditedandunreviewedproformafinancialeffectsoftheSchemeonAltechShareholders,forwhichtheAltechBoard is responsible, are provided for illustrative purposes only to provide information about how the Scheme willaffectthefinancialpositionoftheAltechShareholderswhoelecttheShareConsideration,assumingthattheSchemeConsiderationissettledasto50%CashConsiderationand50%ShareConsideration,byillustratingtheeffectthereofon theBasic EPS andDilutedBasic EPS for continuingoperations, discontinuedoperations and total operations andHEPSandDilutedHEPSfortotaloperations,oftheAltechSharesexchangedforAltronParticipatingPreferenceSharesat theSwitchRatio, as if theSchemehadbecomeoperativeon1March2012, and, for thepurposeofNAVPSandNTAVPSasiftheSchemehadbecomeoperativeon28February2013.Theseproformafinancialeffectsarebasedonthe12-monthauditedfinancialresultsforAltechto28February2013.Becauseoftheirnaturetheunauditedandunreviewedpro forma financialeffectsmaynotgivea fairpresentationofAltechShareholders’ financialpositionandperformancefollowingtheimplementationoftheScheme.Therearenopostbalancesheeteventswhichrequireadjustmenttotheproformafinancialeffects.Theproformafigureshavebeengivennogreaterprominencethanunadjustedfinancialfigures,arepresented inamannerconsistentwithboth the formatandaccountingpoliciesadopted in thehistorical financialinformation and adjustments have been quantified on the same basis as would normally be calculated in preparingfinancialstatements.Theindependentreportingaccountants’assurancereportonthecompilationofproformafinancialinformationhasbeenprovidedinAnnexure3.

CONSOLidATEd STATEmENT OF COmprEhENSivE iNCOmEunaudited

Beforethe Scheme

Note 1r’m

AltronNote 2

r’m

Adjustmentsintereston debt

Note 3 & 5r’m

AltechNote 4 & 5

r’m

Afterthe

SchemeNote 6

r’m

CONTiNuiNg OpErATiONS

revenue 10 161 24 769 24 769

Earningsbeforeinterest,tax,depreciationandamortisation(EBITDA) 878 1692 1692Depreciationandamortisation (165) (461) (461)

Operating profit before capital items 713 1 231 1 231Capitalitems (87) (78) (78)

result from operating activities 626 1 153 1 153Financeincome 13 57     57Financeexpense (57) (134) (68)   (202)Shareofprofit/(loss)fromassociates – 5     5

profit before taxation 582 1 081 (68) 1 013Taxation (225) (374) 19 (355)

profit for the year from continuing operations 357 707 (49) 658

33

Beforethe Scheme

Note 1r’m

AltronNote 2

r’m

Adjustmentsintereston debt

Note 3 & 5r’m

AltechNote 4 & 5

r’m

Afterthe

SchemeNote 6

r’m

diSCONTiNuEd OpErATiONS

revenue 280 280     280

Earningsbeforeinterest,tax,depreciationandamortisation(EBITDA) (113) (113) (113)Depreciationandamortisation (52) (52)     (52)

Operating loss before capital items (165) (165) (165)Capitalitems (1371) (1371)   (1371)

result from operating activities (1 536) (1 536)     (1 536)Financeincome 2 2     2Financeexpense (92) (92)   (92)

Loss before taxation (1 626) (1 626) (1 626)Taxation (10) (10)     (10)

Loss for the year from discontinued operations (1 636) (1 636) (1 636)

Net loss for the year (1 279) (929) (49) (978)

Other comprehensive incomeForeigncurrencytranslationdifferencesinrespectofforeignoperations 243 310     310Realisationofnegativeforeigncurrencytranslationreserveondisposal 196 196     196Fairvalueadjustmentonavailable-for-saleinvestments – (5)     (5)

Other comprehensive income for the year, net of taxation 439 501 501

Total comprehensive income for the year (840) (428) (49) (477)

Loss attributable to:Non-controllinginterests (342) (631) 362 (269)Altronequityholders (937) (298) (49) (362) (709)

Altronequityholdersfromcontinuingoperations 360 498 (49) 139 588Altronequityholdersfromdiscontinuedoperations (1297) (796) (501) (1297)

Net loss for the year (1 279) (929) (49) (978)

Total comprehensive income attributable to:Non-controllinginterests (301) (439) 208 (231)Altronequityholders (539) 11 (49) (208) (246)

Altronequityholdersfromcontinuingoperations 502 650 (49) 194 795Altronequityholdersfromdiscontinuedoperations (1041) (639)   (402) (1041)

34

Beforethe Scheme

Note 1r’m

AltronNote 2

r’m

Adjustmentsintereston debt

Note 3 & 5r’m

AltechNote 4 & 5

r’m

Afterthe

SchemeNote 6

r’m

Total comprehensive income for the year (840) (428) (49) (477)

Weighted average number of shares (millions) 98 316   42  358

Ordinaryshares 98 102     102Participatingpreferenceshares – 214 42 256

diluted average number of shares (millions) 102 319   51 370Number of shares in issue (millions) 98 317 42 359

Switch ratio 2.22

Continuing operations

Basic earnings per share (cents) 369 158 164diluted basic earnings per share (cents) 353 153 159

discontinued operations

Basic loss per share (cents) (1 330) (252) (362)diluted basic loss per share (cents) (1 273) (239) (350)

Total operations

Basic loss per share (cents) (961) (94) (198)diluted basic loss per share (cents) (920) (86) (191)headline earnings per share (cents) 268 136 135diluted headline earnings per share (cents) 256 133 130

Notes:

1. Thefinancialinformationinthe“BeforetheScheme”columnhasbeenpreparedbasedonAltech’sauditedconsolidatedfinancialresultsforthe12monthsended28February2013.

2. Thefinancialinformationinthe“Altron”columnhasbeenpreparedbasedonAltron’sauditedconsolidatedfinancialresultsforthe12monthsended28February2013.

3. Anaftertaxdebtfundingrateof5.46%hasbeenused.Debtfundingisassumedtoberepayableoverfiveyears.Itisassumedthatthisinterestisdeductiblefortaxpurposes.

4. IntermsofIAS27–ConsolidatedandSeparateFinancialStatements,AltronalreadyexercisescontroloverAltechbyvirtueofitsshareholdinginAltech.Consequently,Altech’sresultsareconsolidatedintoAltron’sstatementofcomprehensiveincome.TheonlyadjustmentrelatestotheacquisitionoftheremainingAltechnon-controllinginterests.

5. TheSchemeConsiderationelectedbyAltechShareholdersisassumedtocompriseof50%CashConsiderationand50%ShareConsideration.TheCashConsideration is fundedbydebtofR894millionandtheShareConsiderationbytheissueof41.8millionnewAltronParticipatingPreferenceShares (increasingbothweightedaverageanddilutedaveragenumberof shares in issue) to thevalueofR894million(basedonAltron’s30-dayVWAPuptothedateofthefirstcautionaryannouncementon22March2013).

6. The“pershare”financialinformationincludedinthe“AftertheScheme”columnhasbeenderivedbytakingthe“AftertheScheme”financialeffectsforAltronandmultiplyingtheseresultsbytheSwitchRatiotoprovidetheproformafinancialeffectsforthoseAltechShareholderswhoelecttheShareConsideration.

7. Therearenopostbalancesheeteventswhichrequireadjustmentoftheproformafinancialeffects.

8. Alladjustments,withtheexceptionoftransactioncosts,areexpectedtohaveacontinuingeffect.

35

CONSOLidATEd BALANCE ShEETunaudited

 

Beforethe Scheme

Note 1r’m

AltronNote 2

Pro formaAdjustments

Note 3r’m

Pro formaAdjustments

Note 4r’m

Pro formaAdjustments

Note 5r’m

After theSchemeNote 6

r’m

ASSETS

Non-current assets 1 666 4 757       4 757

Property,plantandequipment 305 1822       1822Intangibleassetsincludinggoodwill 429 1613       1613Associates – 80       80Otherinvestments 497 673       673Rentalfinanceadvances – 45       45Non-currentreceivablesandotherassets 414 414       414Deferredtaxation 21 110       110

Current assets 2 098 8 210       8 190

Inventories 377 2653       2653Tradeandotherreceivables,includingderivatives 1372 4255       4255Cashandcashequivalents 349 1302     (20) 1282

Total assets 3 764 12 967     (20)  12 947

EquiTy ANd LiABiLiTiES

Total equity 597 5 220       4 305

EquityholdersofAltron 828 4741 (1469) 894 (20) 4146Minorityinterest (231) 479 (320)     159

Non-current liabilities 449 787       1 528

Loans 366 609   741   1350Empowermentfundingobligation – 17       17Provisions – 25       25Deferredtaxation 83 136       136

36

 

Beforethe Scheme

Note 1r’m

AltronNote 2

Pro formaAdjustments

Note 3r’m

Pro formaAdjustments

Note 4r’m

Pro formaAdjustments

Note 5r’m

After theSchemeNote 6

r’m

Current liabilities 2 718 6 960       7 114

Loans – 1308   154    1462Empowermentfundingobligation – 29       29Bankoverdraft 279 385       385Tradeandotherpayables 2378 5105       5105Provisions 29 100       100Taxationpayable 32 33       33

Total equity and liabilities 3 764 12 967 (1 789)  1 789  (20)  12 947

Shares in issue(millions) 98 316   42   358

Ordinaryshares 98 102       102Participatingpreferenceshares – 214   42   256

        Switch ratio  2.22

Net asset value per share (NAvpS) (cents) 849 1 496 2 569Net tangible asset value per share (NTAvpS) (cents) 409 988 1 569

Notes:

1. Thefinancialinformationinthe“BeforetheScheme”columnhasbeenpreparedbasedonAltech’sauditedconsolidatedfinancialresultsforthe12monthsended28February2013.

2. Thefinancialinformationinthe“Altron”columnhasbeenpreparedbasedonAltron’sauditedconsolidatedfinancialresultsforthe12monthsended28February2013.

3. TheexcessoftheSchemeConsiderationpaidtoAltechShareholdersoverthenon-controllinginterestinAltech(basedonAltronmanagement’sbestestimateattheLastPracticableDate)amountstoR1469millionat28February2013,andhas,inaccordancewiththerequirementsofIAS 27–ConsolidatedandSeparateFinancialStatements,beendeducteddirectlyfromtheequityattributabletotheAltronShareholders.TheAltechnon-controllinginterestsacquired,amountingtoR320million,havealsobeendeductedfromthenon-controllinginterestbalance.

4. TheSchemeConsiderationelectedbyAltechShareholdersisassumedtocompriseof50%CashConsiderationand50%ShareConsideration.TheCashConsideration is fundedbydebtofR894millionandtheShareConsiderationbytheissueof41.8millionnewAltronParticipatingPreferenceShares (increasingbothweightedaverageanddilutedaveragenumberof shares in issue) to thevalueofR894million(basedonAltron’s30-dayVWAPuptothedateofthefirstcautionaryannouncementon22March2013).

5. Assumedonce-offtransactioncostsfortheAltronGroupamountingtoR20millionhavebeencapitalisedinaccordancewithIAS32–FinancialInstruments:PresentationanddisclosedinequityinaccordancewithIAS1–PresentationofFinancialStatements.Theseamountswillbepaidoutofavailablecashresourcesandareattributabletothevariousprofessionaladvisers,issuersofdebt,regulatoryauthoritiesandprintingcosts.

6. The “per share” financial information included in the “After the Scheme” column has been derived by taking the “Altron” financial effects,andmultiplyingtheseresultsbytheSwitchRatiotoprovidetheproformafinancialeffectsforthoseAltechShareholderswhoelecttheShareConsideration.

37

ALTrON

TheunauditedandunreviewedproformafinancialeffectsoftheSchemeonAltronShareholders,forwhichtheAltronBoardare responsible,areprovided for illustrativepurposesonly toprovide informationabouthowtheSchemewillaffect the financialpositionof theAltronShareholdersby illustrating theeffect thereofontheBasicEPSandDilutedBasicEPSforcontinuingoperations,discontinuedoperationsandtotaloperationsandHEPSandDilutedHEPSfortotaloperationsofAltronas if theSchemehadbecomeoperativeon1March2012,and, for thepurposeofNAVPSandNTAVPSofAltron,asiftheSchemehadbecomeoperativeon28February2013.BecauseoftheirnaturetheunauditedandunreviewedproformafinancialeffectsmaynotgiveafairpresentationofAltron’sfinancialposition,changesinequity,resultsofoperationsandperformanceaftertheScheme.TheunauditedandunreviewedproformafinancialeffectshavebeencompiledusingaccountingpoliciesthatcomplywithIFRSandthatareconsistentwiththoseappliedintheauditedconsolidatedfinancialstatementsofAltronforthe12monthsended28February2013.Therearenopostbalancesheeteventswhichrequireadjustment to thepro forma financialeffects.Thepro forma figureshavebeengivennogreaterprominencethanunadjustedfinancialfigures,arepresentedinamannerconsistentwithboththeformatandaccountingpoliciesadoptedinthehistoricalfinancialinformationandadjustmentshavebeenquantifiedonthesamebasisaswouldnormallybecalculatedinpreparingfinancialstatements.Theindependentreportingaccountants’assurancereportonthecompilationofproformafinancialinformationhasbeenprovidedinAnnexure3.

CONSOLidATEd STATEmENT OF COmprEhENSivE iNCOmEunaudited

Beforethe Scheme

Note 1r’m

Adjustmentsintereston debt

Note 2 & 4r’m

AltechNote 3 & 4

r’m

Afterthe

Schemer’m

CONTiNuiNg OpErATiONS

revenue 24 769 24 769

Earningsbeforeinterest,tax,depreciationandamortisation(EBITDA) 1692 1692Depreciationandamortisation (461) (461)

Operating profit before capital items 1 231 1 231Capitalitems (78) (78)

result from operating activities 1 153 1 153Financeincome 57     57Financeexpense (134) (68)   (202)Shareofprofit/(loss)fromassociates 5     5

profit before taxation 1 081 (68) 1 013Taxation (374) 19 (355)

profit for the year from continuing operations 707 (49) 658

38

Beforethe Scheme

Note 1r’m

Adjustmentsintereston debt

Note 2 & 4r’m

AltechNote 3 & 4

r’m

Afterthe

Schemer’m

diSCONTiNuEd OpErATiONS

revenue 280     280

Earningsbeforeinterest,tax,depreciationandamortisation(EBITDA) (113) (113)Depreciationandamortisation (52)     (52)

Operating loss before capital items (165) (165)Capitalitems (1371)   (1371)

result from operating activities (1 536)     (1 536)Financeincome 2     2Financeexpense (92)   (92)

Loss before taxation (1 626) (1 626)Taxation (10)     (10)

Loss for the year from discontinued operations (1 636) (1 636)

Net loss for the year (929) (49) (978)

Other comprehensive incomeForeigncurrencytranslationdifferencesinrespectofforeignoperations 310     310Realisationofnegativeforeigncurrencytranslationreserveondisposal 196     196Fairvalueadjustmentonavailable-for-saleinvestments (5)     (5)

Other comprehensive income for the year, net of taxation 501 501

Total comprehensive income for the year (428) (49) (477)

Loss attributable to:Non-controllinginterests (631) 362 (269)Altronequityholders (298) (49) (362) (709)

Altronequityholdersfromcontinuingoperations 498 (49) 139 588Altronequityholdersfromdiscontinuedoperations (796) (501) (1297)

Net loss for the year (929) (49) – (978)

Total comprehensive income attributable to:Non-controllinginterests (439) 208 (231)Altronequityholders 11 (49) (208) (246)

Altronequityholdersfromcontinuingoperations 650 (49) 194 795Altronequityholdersfromdiscontinuedoperations (639)   (402) (1041)

Total comprehensive income for the year (428) (49) – (477)

39

Beforethe Scheme

Note 1r’m

Adjustmentsintereston debt

Note 2 & 4r’m

AltechNote 3 & 4

r’m

Afterthe

Schemer’m

Weighted average number of shares (millions) 316   42  358

Ordinaryshares 102     102Participatingpreferenceshares 214   42 256

diluted average number of shares (millions) 319   51 370Number of shares in issue 317 42 359

Continuing operations

Basic earnings per share (cents) 158 164diluted basic earnings per share (cents) 153 159

discontinued operations

Basic loss per share (cents) (252) (362)diluted basic loss per share (cents) (239) (350)

Total operations

Basic loss per share (cents) (94) (198)diluted basic loss per share (cents) (86) (191)headline earnings per share (cents) 136 135diluted headline earnings per share (cents) 133 130

Notes:

1. Thefinancialinformationinthe“BeforetheScheme”columnhasbeenpreparedbasedonAltron’sauditedconsolidatedfinancialresultsforthe12monthsended28February2013.

2. Anaftertaxdebtfundingrateof5.46%hasbeenused.Debtfundingisassumedtoberepayableoverfiveyears.Itisassumedthatthisinterestisdeductiblefortaxpurposes.

3. IntermsofIAS27–ConsolidatedandSeparateFinancialStatements,AltronalreadyexercisescontroloverAltechbyvirtueofitsshareholdinginAltech.Consequently,Altech’sresultsareconsolidatedintotheAltron’sstatementofcomprehensiveincome.TheonlyadjustmentrelatestotheacquisitionoftheremainingAltechnon-controllinginterests.

4. TheSchemeConsiderationelectedbyAltechShareholdersisassumedtocompriseof50%CashConsiderationand50%ShareConsideration.TheCashConsideration is fundedbydebtofR894millionandtheShareConsiderationbytheissueof41.8millionnewAltronParticipatingPreferenceShares (increasingbothweightedaverageanddilutedaveragenumberof shares in issue) to thevalueofR894million(basedonAltron’s30-dayVWAPuptothedateofthefirstcautionaryannouncementon22March2013).

5. Therearenopostbalancesheeteventswhichrequireadjustmentoftheproformafinancialeffects.

6. Alladjustments,withtheexceptionoftransactioncosts,areexpectedtohaveacontinuingeffect.

40

CONSOLidATEd BALANCE ShEETunaudited

Beforethe Scheme

Note 1r’m

Pro formaAdjustments

Note 2r’m

Pro formaAdjustments

Note 3r’m

Pro formaAdjustments

Note 4r’m

After theScheme

r’m

ASSETS

Non-current assets 4 757       4 757

Property,plantandequipment 1822       1822Intangibleassetsincludinggoodwill 1613       1613Associates 80       80Otherinvestments 673       673Rentalfinanceadvances 45       45Non-currentreceivablesandotherassets 414       414Deferredtaxation 110       110

Current assets 8 210       8 190

Inventories 2653       2653Tradeandotherreceivables,includingderivatives 4255       4255Cashandcashequivalents 1302     (20) 1282

Total assets 12 967     (20)  12 947

EquiTy ANd LiABiLiTiES

Total equity 5 220       4 305

EquityholdersofAltron 4741 (1469) 894 (20) 4146Non-controllinginterest 479 (320)     159

Non-current liabilities 787       1 528

Loans 609   741   1350Empowermentfundingobligation 17       17Provisions 25       25Deferredtaxation 136       136

Current liabilities 6 960       7 114

Loans 1308   154    1462Empowermentfundingobligation 29       29Bankoverdraft 385       385Tradeandotherpayables 5105       5105Provisions 100       100Taxationpayable 33       33

Total equity and liabilities 12 967 (1 789)  1 789  (20)  12 947

Shares in issue(millions) 317   42   359

Ordinaryshares 102       102Participatingpreferenceshares 215   42   257

Net asset value per share (NAvpS) (cents) 1 498       1 155Net tangible asset value per share (NTAvpS) (cents) 988       706

41

Notes:

1. Thefinancialinformationinthe“BeforetheScheme”columnhasbeenpreparedbasedonAltron’sauditedconsolidatedfinancialresultsforthe12monthsended28February2013.IntermsofIAS27–ConsolidatedandSeparateFinancialStatements,AltronalreadyexercisescontroloverAltechbyvirtueofitsshareholdinginAltech.Consequently,Altech’sresultsareconsolidatedintotheAltron’sbalancesheet.

2. TheexcessoftheSchemeConsiderationpaidtoAltechShareholdersoverthenon-controllinginterestinAltech(basedonAltronmanagement’sbestestimateattheLastPracticableDate)amountstoR1469millionat28February2013,andhas,inaccordancewiththerequirementsofIAS 27–ConsolidatedandSeparateFinancialStatements,beendeducteddirectlyfromtheequityattributabletotheAltronShareholders.TheAltechnon-controllinginterestsacquired,amountingtoR320million,hasalsobeendeductedfromthenon-controllinginterestbalance.

3. TheSchemeConsiderationelectedbyAltechShareholdersisassumedtocompriseof50%CashConsiderationand50%ShareConsideration.TheCashConsideration is fundedbydebtofR894millionandtheShareConsiderationbytheissueof41.8millionnewAltronParticipatingPreferenceShares (increasingbothweightedaverageanddilutedaveragenumberof shares in issue) to thevalueofR894million(basedonAltron’s30dayVWAPuptothedateofthefirstcautionaryannouncementon22March2013).

4. Assumedonce-offtransactioncostsfortheAltronGroupamountingtoR20millionhavebeencapitalisedinaccordancewithIAS32–FinancialInstruments:PresentationanddisclosedinequityinaccordancewithIAS1–PresentationofFinancialStatements.Theseamountswillbepaidoutofavailablecashresourcesandareattributabletothevariousprofessionaladvisers,issuersofdebt,regulatoryauthoritiesandprintingcosts.

42

ANNEXurE 3

iNdEpENdENT rEpOrTiNg ACCOuNTANTS’ ASSurANCE rEpOrT ON ThE COmpiLATiON OF Pro forma FiNANCiAL iNFOrmATiON iNCLudEd iN A CirCuLAr OF ALLiEd TEChNOLOgiES LimiTEd

TheDirectorsAlliedTechnologiesLimitedWoodmeadNorthOfficePark54MaxwellDriveWoodmeadJohannesburg2191

21June2013

rEpOrT ON ThE COmpiLATiON OF Pro forma FiNANCiAL iNFOrmATiON

Wehavecompletedourassuranceengagementtoreport(“Report”)onthecompilationoftheunauditedandunreviewedproformaBasicEPSandDilutedBasicEPSforcontinuingoperations,discontinuedoperationsandtotaloperationsandHEPSandDilutedHEPSfortotaloperations,netassetvalueandnettangibleassetvaluepershareofAlliedTechnologiesLimited(“Altech”),proformabalancesheetofAltech,theproformastatementofcomprehensiveincomeofAltechandtherelatednotes,includingareconciliationshowingalloftheproformaadjustmentstothesharecapital,reservesandotherequityitemsrelatingtoAltech(collectively“ProformaFinancialInformation”).TheProformaFinancialInformationissetoutinparagraph6.1andAnnexure2oftheCirculartobeissuedbytheCompanyonorabout27June2013(“Circular”).

ThePro forma Financial Informationhasbeencompiledby theDirectorsofAltech to illustrate the impactofAltron,throughitswhollyownedsubsidiaryAltronFinanceProprietaryLimited,acquiringtheentireordinaryissuedsharecapitalofAltechthatitoritssubsidiariesdoesnotalreadyown(“Transaction”)asdetailedintheCircularontheCompany’sfinancialpositionandchangesinequityasat28February2013andtheCompany’sfinancialperformancefortheperiodended28February2013.

Aspartofthisprocess,theCompany’sBasicEPSandDilutedBasicEPSforcontinuingoperations,discontinuedoperationsandtotaloperationsandHEPSandDilutedHEPSfortotaloperations,statementofcomprehensiveincomeandbalancesheethavebeenextractedbythedirectors fromtheCompany’spublishedfinancialstatements fortheperiodended28 February2013 (“PublishedFinancial Information”),onwhichanauditopinionhasbeenpublished. In addition, thedirectorshavecalculatedthenetassetvalueandnet tangibleassetvaluepershareasat28February2013basedonfinancialinformationextractedfromthePublishedFinancialInformation.

dirECTOrS’ rESpONSiBiLiTy FOr ThE Pro forma FiNANCiAL iNFOrmATiON

ThedirectorsofAltronareresponsibleforcompilingtheProformaFinancialInformationonthebasisoftheapplicablecriteriaasdetailedinparagraphs8.15to8.33oftheListingsRequirementsoftheJSELimitedandtheSAICAGuideonPro formaFinancialInformation,revisedandissuedinSeptember2012(“ApplicableCriteria”).

rEpOrTiNg ACCOuNTANTS’ rESpONSiBiLiTy

OurresponsibilityistoexpressanopinionaboutwhethertheProformaFinancialInformationhasbeencompiled,inallmaterialrespects,bythedirectorsonthebasisoftheApplicableCriteria,basedonourproceduresperformed.

We conducted our engagement in accordance with International Standard on Assurance Engagements (ISAE) 3420,AssuranceEngagementstoReportontheCompilationofProFormaFinancialInformationIncludedinaProspectus,issuedbytheInternationalAuditingandAssuranceStandardsBoard.Thisstandardrequiresthatthereportingaccountantscomplywithethicalrequirementsandplanandperformprocedurestoobtainreasonableassuranceaboutwhetherthedirectorshavecompiled,inallmaterialrespects,theProformaFinancialInformationonthebasisoftheApplicableCriteria.

Forpurposesofthisengagement,wearenotresponsibleforupdatingorreissuinganyreportsoropinionsonanyPublishedFinancialInformationusedincompilingtheProformaFinancialInformation,norhavewe,inthecourseofthisengagement,performedanauditorreviewofthePublishedFinancialInformationusedincompilingtheProformaFinancialInformation.

43

ThepurposeofProformaFinancialInformationincludedintheCircularissolelytoillustratetheimpactoftheTransactionontheunadjustedPublishedFinancialInformationasiftheTransactionhadbeenundertakenon1March2012forpurposesoftheBasicEPSandDilutedBasicEPSforcontinuingoperations,discontinuedoperationsandtotaloperationsandHEPSandDilutedHEPSfortotaloperationsandtheproformastatementofcomprehensiveincomeandon28 February2013forpurposesof thenetassetvalueandnet tangibleassetvaluepershareandbalancesheet.Accordingly,wedonotprovideanyassurancethattheactualoutcomeoftheTransaction,subsequenttoitsimplementation,willbeaspresentedintheProformaFinancialInformation.

AreasonableassuranceengagementtoreportonwhethertheProformaFinancialInformationhasbeenproperlycompiled,inallmaterial respects,onthebasisof theApplicableCriteria involvesperformingprocedurestoassesswhether theApplicableCriteriausedbythedirectorsinthecompilationoftheProformaFinancialInformationprovideareasonablebasis forpresenting the significanteffectsdirectlyattributable to theTransactionand toobtain sufficientappropriateevidenceaboutwhether:

• TherelatedproformaadjustmentsgiveappropriateeffecttotheApplicableCriteria;and

• TheProformaFinancial InformationreflectstheproperapplicationofthoseproformaadjustmentstotheunadjustedPublishedFinancialInformation.

Theproceduresselecteddependonthereportingaccountants’judgement,havingregardtothereportingaccountants’understandingofthenatureoftheCompany,theTransactioninrespectofwhichtheProformaFinancialInformationhasbeencompiledandotherrelevantengagementcircumstances.

TheengagementalsoinvolvesevaluatingtheoverallpresentationoftheProformaFinancialInformation.

Webelievethattheevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.

OpiNiON

Inouropinion,theProformaFinancialInformationhasbeencompiled,inallmaterialrespects,onthebasisoftheApplicableCriteria.

Yoursfaithfully

Kpmg inc.Per:GStanierCharteredAccountant(SA)RegisteredAuditorDirector

44

iNdEpENdENT rEpOrTiNg ACCOuNTANTS’ ASSurANCE rEpOrT ON ThE COmpiLATiON OF Pro forma FiNANCiAL iNFOrmATiON iNCLudEd iN A CirCuLAr OF ALLiEd ELECTrONiCS COrpOrATiON LimiTEd

TheDirectorsAlliedElectronicsCorporationLimitedAltronHouse4SherborneRoadParktown2193

21June2013

rEpOrT ON ThE COmpiLATiON OF Pro forma FiNANCiAL iNFOrmATiON

Wehavecompletedourassuranceengagementtoreport(“Report”)onthecompilationoftheunauditedandunreviewedproformaBasicEPSandDilutedBasicEPSforcontinuingoperations,discontinuedoperationsandtotaloperationsandHEPSandDilutedHEPSfortotaloperations,netassetvalueandnettangibleassetvaluepershareofAlliedElectronicsCorporationLimited(“Altron”),proformabalancesheetofAltron,theproformastatementofcomprehensiveincomeofAltronandtherelatednotes,includingareconciliationshowingalloftheproformaadjustmentstothesharecapital,reservesandotherequityitemsrelatingtoAltron(collectively“ProformaFinancialInformation”).TheProformaFinancialInformation is set out in paragraph 6.2 andAnnexure 2 of theCircular to be issued by theCompany on or about27 June 2013(“Circular”).

ThePro forma Financial Informationhasbeen compiledby thedirectorsofAltron to illustrate the impactofAltron,throughitswhollyownedsubsidiaryAltronFinanceProprietaryLimited,acquiringtheentireordinaryissuedsharecapitalofAlliedTechnologiesLimitedthatitoritssubsidiariesdoesnotalreadyown(“Transaction”)asdetailedintheCircularontheCompany’sfinancialpositionandchangesinequityasat28February2013andtheCompany’sfinancialperformancefortheperiodended28February2013.

Aspartofthisprocess,theCompany’sBasicEPSandDilutedBasicEPSforcontinuingoperations,discontinuedoperationsandtotaloperationsandHEPSandDilutedHEPSfortotaloperations,statementofcomprehensiveincomeandbalancesheethavebeenextractedbythedirectors fromtheCompany’spublishedfinancialstatements fortheperiodended28 February2013 (“PublishedFinancial Information”),onwhichanauditopinionhasbeenpublished. In addition, thedirectorshavecalculatedthenetassetvalueandnet tangibleassetvaluepershareasat28February2013basedonfinancialinformationextractedfromthePublishedFinancialInformation.

dirECTOrS’ rESpONSiBiLiTy FOr ThE Pro forma FiNANCiAL iNFOrmATiON

ThedirectorsofAltronareresponsibleforcompilingtheProformaFinancialInformationonthebasisoftheapplicablecriteriaasdetailedinparagraphs8.15to8.33oftheListingsRequirementsoftheJSELimitedandtheSAICAGuideonPro formaFinancialInformation,revisedandissuedinSeptember2012(“ApplicableCriteria”).

rEpOrTiNg ACCOuNTANTS’ rESpONSiBiLiTy

OurresponsibilityistoexpressanopinionaboutwhethertheProformaFinancialInformationhasbeencompiled,inallmaterialrespects,bythedirectorsonthebasisoftheApplicableCriteria,basedonourproceduresperformed.

We conducted our engagement in accordance with International Standard on Assurance Engagements (ISAE) 3420,AssuranceEngagementstoReportontheCompilationofProFormaFinancialInformationIncludedinaProspectus,issuedbytheInternationalAuditingandAssuranceStandardsBoard.Thisstandardrequiresthatthereportingaccountantscomplywithethicalrequirementsandplanandperformprocedurestoobtainreasonableassuranceaboutwhetherthedirectorshavecompiled,inallmaterialrespects,theProformaFinancialInformationonthebasisoftheApplicableCriteria.

Forpurposesofthisengagement,wearenotresponsibleforupdatingorreissuinganyreportsoropinionsonanyPublishedFinancialInformationusedincompilingtheProformaFinancialInformation,norhavewe,inthecourseofthisengagement,performedanauditorreviewofthePublishedFinancialInformationusedincompilingtheProformaFinancialInformation.

ThepurposeofProformaFinancialInformationincludedintheCircularissolelytoillustratetheimpactoftheTransactionon the unadjusted Published Financial Information as if the Transaction had been undertaken on 1 March 2012 forpurposesoftheBasicEPSandDilutedBasicEPSforcontinuingoperations,discontinuedoperationsandtotaloperations

45

andHEPSandDilutedHEPSfortotaloperationsandtheproformastatementofcomprehensiveincomeon28February2013forpurposesofthenetassetvalueandnettangibleassetvaluepershareandbalancesheet.Accordingly,wedonotprovideanyassurancethattheactualoutcomeoftheTransaction,subsequenttoitsimplementation,willbeaspresentedintheProformaFinancialInformation.

AreasonableassuranceengagementtoreportonwhethertheProformaFinancialInformationhasbeenproperlycompiled,inallmaterial respects,onthebasisof theApplicableCriteria involvesperformingprocedurestoassesswhether theApplicableCriteriausedbythedirectorsinthecompilationoftheProformaFinancialInformationprovideareasonablebasis forpresenting the significanteffectsdirectlyattributable to theTransactionand toobtain sufficientappropriateevidenceaboutwhether:

• TherelatedproformaadjustmentsgiveappropriateeffecttotheApplicableCriteria;and

• TheProformaFinancial InformationreflectstheproperapplicationofthoseproformaadjustmentstotheunadjustedPublishedFinancialInformation.

Theproceduresselecteddependonthereportingaccountant’sjudgement,havingregardtothereportingaccountant’sunderstandingofthenatureoftheCompany,theTransactioninrespectofwhichtheProformaFinancialInformationhasbeencompiledandotherrelevantengagementcircumstances.

TheengagementalsoinvolvesevaluatingtheoverallpresentationoftheProformaFinancialInformation.

Webelievethattheevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.

OpiNiON

Inouropinion,theProformaFinancialInformationhasbeencompiled,inallmaterialrespects,onthebasisoftheApplicableCriteria.

Yoursfaithfully

Kpmg inc.Per:GStanierCharteredAccountant(SA)RegisteredAuditorDirector

46

ANNEXurE 4

hiSTOriCAL FiNANCiAL iNFOrmATiON OF ALTECh

AudiTEd rESuLTS FOr ThE yEArS ENdEd 28 FEBruAry 2011 TO 28 FEBruAry 2013

ThereportofhistoricalfinancialinformationistheresponsibilityoftheDirectorsofAltech.

SummAriSEd CONSOLidATEd STATEmENT OF COmprEhENSivE iNCOmE

r million

Auditedyear ended

28 Feb 13

Auditedyear ended

29 Feb 12

Auditedyear ended

28 Feb 11

revenue 10 441 9 972 9 651

EBITDA 765 919 1072Depreciationandamortisation (217) (270) (285)

Operating profit before capital items 548 649 787Capitalitems(Note1) (1458) (830) (273)

result from operating activities (910) (181) 514

Financeincome 15 15 35Financeexpense (149) (74) (90)

(Loss)/profit before taxation (1 044) (240) 459Taxation (235) (262) (234)

(Loss)/profit for the year (1 279) (502) 225

Other comprehensive (loss) /incomeForeigncurrencytranslationdifferencesinrespectofforeign operations 243 67 (281)Realisationofnegativeforeigncurrencytranslationreserveon disposal 196

Other comprehensive (loss)/income for the year, net of taxation 439 67 (281)

Total comprehensive (loss)/income for the year (840) (435) (56)

(Loss)/profit attributable to:Non-controllinginterests (342) (226) 15Altechequityholders (937) (276) 210

(Loss)/profit for the year (1 279) (502) 225

Total comprehensive (loss)/income attributable to:Non-controllinginterests (301) (208) (38)Altechequityholders (539) (227) (18)

Total comprehensive (loss)/income for the year (840) (435) (56)

Basic (loss)/earnings per share (cents) (961) (283) 216

diluted basic (loss)/earnings per share (cents) (920) (275) 213

47

SummAriSEd CONSOLidATEd BALANCE ShEET

r million

Auditedyear ended

28 Feb 13

Auditedyear ended

29 Feb 12

Auditedyear ended

28 Feb 11

ASSETS

Non-current assets 1 666 1 732 2 449

Property,plantandequipment 305 886 1027Intangibleassets,includinggoodwill 429 693 1207Investments 427Non-currentreceivables 414 114 133Deferredtaxation 21 39 82

Current assets 2 098 2 222 2 108

Inventories 377 449 366Tradeandotherreceivables,includingderivatives 1372 1497 1251Cashandcashequivalents 349 276 491

Assetsclassifiedasheld-for-sale – 135 –

Total assets 3 764 4 089 4 557

EquiTy ANd LiABiLiTiES

Total equity 597 1 433 2 229

Altechequityholders 828 1600 2137Non-controllinginterest (231) (167) 92

Non-current liabilities 449 570 331

Loanspayable 366 473 231Deferredincome – 51 46Deferredtaxation 83 46 54

Current liabilities 2 718 2 019 1 997

Tradeandotherpayables,includingderivatives 2378 1649 1813Warrantyprovisions 29 22 17Bankoverdrafts 279 292 33Taxationpayable 32 56 134

Liabilitiesclassifiedasheld-for-sale – 67 –

Total equity and liabilities 3 764 4 089 4 557

Net asset value per share (cents) 849 1 641 2 193

48

SummAriSEd CONSOLidATEd STATEmENT OF CASh FLOWS

r million

Auditedyear ended

28 Feb 13

Auditedyear ended

29 Feb 12

Auditedyear ended

28 Feb 11

Cash flows (utilised in)/from operating activities 900 (365) 404

Cashgenerated/(utilised)byoperations 1451 382 1038Financeincome 15 15 35Financeexpenses (131) (74) (90)Taxationpaid (188) (329) (239)

Cash (utilised in)/available from operating activities 1 147 (6) 744

Dividendspaid–Altechequityholders (242) (347) (330)–Non-controllinginterest (5) (12) (10)

Cash flows utilised in investing activities (773) (314) (434)

Additionstoproperty,plantandequipment (162) (244) (259)Proceedsondisposalofproperty,plantandequipment 7  76 2Additionstointangibleassets (144) (121) (91)Acquisitionofsubsidiariesandbusinesses – (21) (30)Paymentofvendorliabilities (1) (4) (56)PreferenceshareinvestmentinGradolite(Pty)Limited (43)Additionstocontractfulfilmentcosts (430)

Cash flows from/(utilised) in financing activities 408 209 (133)

Proceedsonshareissue 4 1 4Loansadvanced/(repaid) 404 208 (137)

Cash flows on disposal of discontinued operations (353)

Net(decrease)/increaseincashandcashequivalents 182 (470) (163)(Bankoverdraft)/cashandcashequivalentsonacquisitionofsubsidiaries (16) 5Netcashinsubsidiariessold (96)Cashandcashequivalentsatthebeginningoftheyear (16) 458 616Bankoverdraftattheendoftheyearclassifiedasheld-for-sale – 12 –

Cashandcashequivalentsattheendoftheyear 70 (16) 458

49

Su

mm

Ar

iSE

d C

ON

SO

Lid

AT

Ed

ST

AT

Em

EN

T O

F C

hA

Ng

ES

iN

Eq

uiT

y

r m

illio

n

Sha

re

capi

tal a

nd

prem

ium

Tre

asur

y sh

ares

Oth

er

rese

rves

pre

miu

m/

disc

oun

t o

n no

n-co

ntro

lling

eq

uity

tr

ansa

ctio

nsr

etai

ned

earn

ings

Tota

l

No

n-co

ntro

lling

in

tere

stTo

tal

equi

ty

Bal

ance

at

28 F

ebru

ary

2010

(A

udit

ed)

45(2

92)

(170

)(8

6)2

625

2 12

248

52

607

Tota

l co

mpr

ehen

sive

inco

me

Prof

itfo

rth

eye

ar21

021

015

225

Oth

er c

om

preh

ensi

ve lo

ssFo

reig

ncu

rren

cyt

rans

latio

ndi

ffere

nces

in

resp

ect

offo

reig

nop

erat

ions

––

(228

)–

–(2

28)

(53)

(281

)

Tota

l oth

er c

om

preh

ensi

ve lo

ss–

–(2

28)

––

(228

)(5

3)(2

81)

Tota

l co

mpr

ehen

sive

(lo

ss)/

inco

me

for

the

year

––

(228

)–

210

(18)

(38)

(56)

Tran

sact

ions

wit

h ow

ners

, rec

orde

d

dire

ctly

in e

quit

yC

ontr

ibut

ions

by

and

dist

ribu

tion

s to

 ow

ners

Issue

ofs

hare

cap

ital

44

–4

Div

iden

dst

oeq

uity

hol

ders

(330

)(3

30)

(10)

(340

)IF

RS2

cha

rge

onB

-BBE

Etr

ansa

ctio

ns–

–7

––

7–

7Sh

are-

base

dpa

ymen

ttr

ansa

ctio

ns–

–7

––

7–

7

Tota

lcon

trib

utio

nsb

yan

ddi

strib

utio

ns

to o

wne

rs4

–14

–(3

30)

(312

)(1

0)(3

22)

Cha

nges

in o

wne

rshi

p in

tere

sts

in s

ubsi

diar

ies

Intr

oduc

tion

ofn

on-c

ontr

ollin

gin

tere

st34

534

5(3

45)

–

Tota

lcha

nges

ino

wne

rshi

pin

tere

sts

in s

ubsid

iarie

s–

––

345

–34

5(3

45)

–

Tota

ltra

nsac

tions

with

ow

ners

4–

1434

5(3

30)

33(3

55)

(322

)

Bal

ance

at

28 F

ebru

ary

2011

(A

udit

ed)

49(2

92)

(384

)25

92

505

2 13

792

2 22

9

50

r m

illio

n

Sha

re

capi

tal a

nd

prem

ium

Tre

asur

y sh

ares

Oth

er

rese

rves

pre

miu

m/

disc

oun

t o

n no

n-co

ntro

lling

eq

uity

tr

ansa

ctio

nsr

etai

ned

earn

ings

Tota

l

No

n-co

ntro

lling

in

tere

stTo

tal

equi

ty

Tota

l com

pre

hens

ive

loss

Loss

for

the

year

(276

)(2

76)

(226

)(5

02)

oth

er c

omp

rehe

nsiv

e in

com

eFo

reig

ncu

rren

cyt

rans

latio

ndi

ffere

nces

in

resp

ect

offo

reig

nop

erat

ions

––

49–

–49

1867

Tota

l oth

er c

om

preh

ensi

ve in

com

e–

–49

––

4918

67

Tota

l co

mpr

ehen

sive

inco

me/

(lo

ss)

for 

the

year

––

49–

(276

)(2

27)

(208

)(4

35)

Tran

sact

ions

wit

h ow

ners

, rec

orde

d di

rect

ly in

 equ

ity

Con

trib

utio

ns b

y an

d di

stri

buti

ons

to o

wne

rsIss

ueo

fsha

rec

apita

l1

1 

1D

ivid

ends

to

equi

tyh

olde

rs(3

47)

(347

)(1

2)(3

59)

IFRS

2c

harg

eon

B-B

BEE

tran

sact

ions

––

5–

–5

–5

Shar

e-ba

sed

paym

ent

tran

sact

ions

––

11–

–11

–11

Tota

lcon

trib

utio

nsb

yan

ddi

strib

utio

ns

to o

wne

rs1

–16

–(3

47)

(330

)(1

2)(3

42)

Cha

nges

in o

wne

rshi

p in

tere

sts

in s

ubsi

diar

ies

Acq

uisit

ion

ofn

on-c

ontr

ollin

gin

tere

st20

20(3

9)(1

9)

Tota

lcha

nges

ino

wne

rshi

pin

tere

sts

in s

ubsid

iarie

s–

––

20–

20(3

9)(1

9)

Tota

ltra

nsac

tions

with

ow

ners

1–

1620

(347

)(3

10)

(51)

(361

)

Bal

ance

at

29 F

ebru

ary

2012

(A

udit

ed)

50(2

92)

(319

)27

91

882

1 60

0(1

67)

1 43

3

Tota

l com

pre

hens

ive

loss

Loss

for

the

year

(937

)(9

37)

(342

)(1

279

)

51

r m

illio

n

Sha

re

capi

tal a

nd

prem

ium

Tre

asur

y sh

ares

Oth

er

rese

rves

pre

miu

m/

disc

oun

t o

n no

n-co

ntro

lling

eq

uity

tr

ansa

ctio

nsr

etai

ned

earn

ings

Tota

l

No

n-co

ntro

lling

in

tere

stTo

tal

equi

ty

Oth

er c

om

preh

ensi

ve in

com

eFo

reig

ncu

rren

cyt

rans

latio

ndi

ffere

nces

in

resp

ect

offo

reig

nop

erat

ions

202

202

4124

3Re

alisa

tion

ofn

egat

ive

fore

ign

curr

ency

tr

ansla

tion

rese

rve

ond

ispos

al19

619

619

6

Tota

l oth

er c

om

preh

ensi

ve in

com

e39

839

841

439

Tota

l co

mpr

ehen

sive

inco

me/

(lo

ss)

for 

the

year

398

(937

)(5

39)

(301

)(8

40)

Tran

sact

ions

wit

h ow

ners

, rec

orde

d di

rect

ly in

equ

ity

Con

trib

utio

ns b

y an

d di

stri

buti

ons

to o

wne

rsIss

ueo

fsha

rec

apita

l4

44

Div

iden

dst

oeq

uity

hol

ders

(242

)(2

42)

(5)

(247

)Sh

are-

base

dpa

ymen

ttr

ansa

ctio

ns5

55

Tota

lcon

trib

utio

nsb

yan

ddi

strib

utio

ns

to o

wne

rs4

5(2

42)

(233

)(5

)(2

38)

Cha

nges

in o

wne

rshi

p in

tere

sts

in

subs

idia

ries

Disp

osal

ope

ratio

ns24

224

2

Tota

lcha

nges

ino

wne

rshi

pin

tere

sts

in s

ubsid

iarie

s24

224

2

Tota

ltra

nsac

tions

with

ow

ners

45

(242

)(2

33)

237

4

Bal

ance

at

28 F

ebru

ary

2013

(A

udit

ed)

54(2

92)

8470

382

8(2

31)

597

52

ACCOuNTiNg pOLiCiES

1. STATEmENT OF COmpLiANCE

The consolidated and separate financial statements have been prepared in accordancewith International FinancialReporting Standards (IFRS), in compliance with JSE Listing Requirements, the SAICA Financial Reporting Guidesas issued by theAccounting Practices Committee and Financial Reporting Pronouncements as issued by FinancialReportingStandardsCouncilandtherequirementsoftheSouthAfricanCompaniesAct.

2. BASiS OF prEpArATiON

TheconsolidatedandseparateannualfinancialstatementsarepresentedinmillionsofSouthAfricanrands,whichisthecompany’sfunctionalcurrency,onahistoricalcostbasis,exceptforthefollowingassetsandliabilitieswhicharestatedatfairvalue:

• derivativefinancialinstruments;

• financialinstrumentsclassifiedasavailable-for-sale;

• share-basedpaymentrechargearrangementassetsandliabilities.;and

• non-currentassetsanddisposalgroupsheld-for-salearestatedatthelowerofcarryingamountandfairvaluelesscosttosell.

ThepreparationoffinancialstatementsinconformitywithIFRSrequiresmanagementtomakejudgements,estimatesandassumptionsthatmayaffecttheapplicationofaccountingpoliciesandthereportedamountsofassets,liabilities,incomeandexpenses.Theestimatesandassociatedunderlyingassumptionsarebasedonhistoricalexperienceandvariousotherfactorsthatarebelievedtobereasonableunderthecircumstances,theresultsofwhichformthebasisofmakingthejudgementsaboutcarryingvaluesofassetsandliabilitiesthatarenotreadilyapparentfromothersources.Actualresultsmaydifferfromtheseestimates.

Theestimatesandunderlyingassumptionsarereviewedonanongoingbasis.Revisionstoaccountingestimatesarerecognisedintheperiodinwhichtheestimateisrevisediftherevisiononlyaffectsthatperiod,orintheperiodoftherevisionandfutureperiodsiftherevisionaffectsbothcurrentandfutureperiods.JudgementsmadebymanagementintheapplicationofIFRSthathaveasignificanteffectonthefinancialstatementsandestimateswithasignificantriskofmaterialadjustmentinthenextyear,arediscussedinthenotes.

Theaccountingpoliciessetoutbelowhavebeenappliedconsistentlytotheperiodspresentedintheseconsolidatedandseparatefinancialstatements.

Thegroup’saccountingpolicieshavebeenappliedconsistentlybyallgroupentities.

The comparative statements of comprehensive income and cash flows has been re-presented as if an operationdiscontinuedduringthecurrentyearhadbeendiscontinuedfromthestartofthecomparativeyear

3. BASiS OF CONSOLidATiON

3.1 Subsidiaries

Subsidiariesarethoseentitiesoverwhichthegrouphasthepowerto,directlyorindirectly,exercisecontroloverthefinancialandoperatingpolicies,soastoobtainbenefitsfromtheiractivities. Inassessingcontrol,potentialvotingrightsthatpresentlyareexercisablearetakenintoaccount.Thefinancialstatementsofsubsidiariesareincluded in the consolidated financial statements from thedate that control commences until thedate thatcontrolceases.Lossesapplicabletonon-controllinginterestsinasubsidiaryareallocatedtothenon-controllinginterestevenifdoingsocausesthenon-controllinginteresttohaveadeficitbalance.

3.2 Eliminations on consolidation

Intragroupbalancesandtransactions,andanyunrealisedgainsorlossesarisingfromintragrouptransactions,areeliminatedinpreparingtheconsolidatedfinancialstatements.

3.3 goodwill

Allbusinesscombinationsareaccountedforbyapplyingthe“acquisitionmethod”,asatacquisitiondate,whichisthedateonwhichcontrolistransferredtothegroup.Foracquisitionsonorafter1March2010,thegroupmeasuresgoodwillattheacquisitiondateas:

53

• thefairvalueofconsiderationtransferred;plus

• therecognisedamountofanynon-controllinginterestintheacquire;plus

• ifthebusinesscombinationisachievedinstages,thefairvalueoftheexistingequityinterestintheacquirer ;less

• thenetrecognisedamount(generallyfairvalue)oftheidentifiableassetsacquiredandliabilitiesassumed.

Whentheexcess isnegative,abargainpurchasegain is recognised immediately inprofitor loss.Subsequenttoacquisition,goodwillismeasuredatcostlessaccumulatedimpairmentlosses.Goodwillisallocatedtocash-generatingunitsandistestedannuallyforimpairment.Theconsiderationtransferreddoesnotincludeamountsrelatedtothesettlementofpre-existingrelationships.Suchamountsaregenerallyrecognisedinprofitorloss.Anycontingentconsiderationpayableismeasuredatfairvalueattheacquisitiondate.Ifthecontingentconsiderationis classified as equity, then it is not re-measured and settlement is accounted for within equity. Otherwise,subsequentchangesinthefairvalueofcontingentconsiderationarerecognisedinprofitorloss.Costsrelatedtotheacquisition,otherthanthoseassociatedwiththeissueofdebtorequityinstruments,thatthegroupincursinconnectionwithabusinesscombinationareexpensedasincurred.

3.4 premiums and discounts arising on subsequent purchases from, or sales to, non-controlling interests in subsidiaries

Anyincreasesanddecreasesinownershipinterestsinsubsidiaries,withoutachangeincontrol,arerecognisedas equity transactions in the consolidated financial statements. Accordingly, any premiums or discounts onsubsequentpurchasesofequityinstrumentsfrom,orsalesofequityinstrumentstonon-controllinginterestsarerecogniseddirectlyintheequityoftheparentshareholder.

3.5 Broad-Based Black Economic Empowerment (B-BBEE) transactions

B-BBEEtransactionsinvolvingthedisposalorissueofequityinterestsinsubsidiariesareonlyrecognisedwhentheaccountingrecognitioncriteriahavebeenmet.AlthougheconomicandlegalownershipofsuchinstrumentsmayhavetransferredtotheB-BBEEpartner,thede-recognitionofsuchequityinterestsoldorrecognitionofequityinstruments issued in theunderlying subsidiaryby theparent shareholder is postponeduntil the accountingrecognitioncriteriahavebeensatisfied.Adilutionintheearningsattributabletotheparentshareholders(intheinterimperiod)isadjustedforinthedilutedearningspersharecalculationbyanappropriateadjustmenttotheearningsusedinsuchcalculation.

4. CASh ANd CASh EquivALENTS

Cashandcashequivalentscomprisecashbalances,calldepositsandcashfloats.Bankoverdraftsthatarerepayableondemandandformanintegralpartofthegroup’scashmanagementare includedasacomponentofcashandcashequivalentsforthepurposesofthestatementsofcashflows.Cashandcashequivalentsaremeasuredatamortisedcostwhichapproximatestheirfairvalue.

5. CApiTALiSATiON OF BOrrOWiNg COSTS

Interestonborrowingsthataredirectlyattributabletotheacquisitionorconstructionofqualifyingassetsthatrequireasubstantialperiodoftimetopreparefortheirintendeduse,arecapitalised.Interestiscapitalisedovertheperiodduringwhichthequalifyingassetisbeingacquiredorconstructedandborrowingshavebeenincurred.Capitalisationceaseswhentheconstructionisinterruptedforanextendedperiodorwhenthequalifyingassetissubstantiallycomplete.

6. CApiTAL iTEmS

Capitalitemsareitemsofincomeandexpenserelatingtotheacquisition,disposalorimpairmentofproperty,plantandequipment,investments,subsidiariesandintangibleassets.Capitalitemsrelateto“separatelyidentifiableremeasurements’(notadjustedforrelatedtaxationandrelatednon-controllinginterests)otherthan‘includedremeasurements’specificallyincludedinheadlineearningsasdefinedin“Circular3/2012–Headlineearnings”.

7. EmpLOyEE BENEFiTS

7.1 Short-term employee benefits

Thecostofallshort-termemployeebenefitsarerecognisedinprofitandlossduringtheperiodinwhichtheemployeerenderstherelatedservice.Theaccrualsforemployeeentitlementstosalaries,performancebonuses

54

andannual leave represent theamountswhich thegrouphas apresentobligation topayas a resultof theemployee’s servicesprovided.Theaccrualshavebeencalculatedatundiscountedamountsbasedoncurrentsalarylevels.

7.2 retirement benefits

Thegroup’scontributions todefinedcontribution fundsare recognised inprofitor loss in theyear theyareincurred.

7.3 defined benefit obligations

Theprojectedunitcreditmethodisusedtodeterminethepresentvalueofthesedefinedbenefitobligations,therelatedservicecostand,whereapplicable,thepastservicecost.

Thefairvalueofplanassetsisdeductedfromthepresentvalueofthedefinedbenefitobligationtotheextentpermittedby IAS19–Employeebenefits. Past service costs are recognised as anexpenseona straight-linebasisovertheaverageperioduntilthebenefitsbecomevested.Pastservicecostswhicharealreadyvested,areexpensed immediately.Actuarial gainsand lossesare recognisedas incomeorexpense if thenetcumulativeunrecognisedactuarialgainsorlossesattheendofthepreviousfinancialyearexceededthegreaterof:

• 10%ofthepresentvalueofthedefinedbenefitobligationatthatdatebeforedeductingplanassets;and

• 10%ofthefairvalueoftheplanassetsatthatdate.

Theamountrecognisedistheexcessdeterminedabove,dividedbytheexpectedaverageremainingworkinglives of the employees participating in the plan.When the calculation results in a benefit to the group, therecognisedassetislimitedtothenettotalofanyunrecognisedpastservicecostandthepresentvalueofanyfuturerefundsfromtheplanorreductionsinfuturecontributionstotheplan.

8. FiNANCiAL iNSTrumENTS

8.1 initial recognition

Financialinstrumentsareinitiallymeasuredatfairvalue,whichincludestransactioncosts,exceptforthoseitemscarriedatfairvaluethroughprofitorloss,whenthegroupbecomesapartytothecontractualarrangementsassetoutbelow.Subsequenttoinitialrecognitiontheseinstrumentsaremeasuredassetoutbelow.

8.2 Financial assets

Financialassetsare recognisedwhen thegrouphas rightsorotheraccess toeconomicbenefits.Suchassetsconsistofcashandcashequivalents,acontractualrighttoreceivecashoranotherfinancialassetoracontractualrighttoexchangefinancialinstrumentswithanotherentityonpotentiallyfavourableterms.

8.3 investments

Otherinvestmentsheldbythegroupareclassifiedasavailable-for-saleandaremeasuredatfairvalue,withanyresultant gainor loss, including foreign exchange gainsor losses, recogniseddirectly inother comprehensiveincome,exceptforimpairmentlossesandinthecaseofavailable-for-saledebtinstruments,whicharerecognisedinprofitor loss.When these investments aredisposedof, the cumulative gainor losspreviously recogniseddirectlyinothercomprehensiveincomeisrecognisedandpresentedwithinprofitorlossasacapitalitem.Whenthese investmentsare interestbearing, interestcalculatedusingtheeffective interestmethod isrecognised inprofitorloss.

8.4 Financial liabilities

Financialliabilitiesarerecognisedwhenthereisanobligationtotransferbenefitsandthatobligationisacontractualliability todelivercashoranother financialassetor toexchange financial instrumentswithanotherentityonpotentiallyunfavourableterms.Financialliabilitiesotherthanderivativeinstrumentsaremeasuredatamortisedcostusingtheeffectiveinterestmethod.

8.5 interest-bearing borrowings

Subsequenttoinitialrecognition,interest-bearingborrowingsaremeasuredatamortisedcostwithanydifferencebetweeninitialfairvalueandredemptionvaluebeingrecognisedinprofitorlossovertheperiodoftheborrowingsusingtheeffective-interestmethod.

55

8.6 Trade and other receivables/payables

Tradeandotherreceivables/payablesoriginatedbythegrouparestatedatamortisedcostlessimpairmentlossesonreceivables.

8.7 Financial liabilities extinguished with equity instruments

Equityinstrumentsissuedtoacreditortoextinguishallorpartofafinancialliabilitywouldrepresent“considerationpaid”.Theequityinstrumentsaremeasuredattheirfairvalue,unlesssuchfairvaluecannotbereliablymeasured,inwhichcase the fairvalueof the financial liabilityextinguished isused.Thedifferencebetweenthecarryingamountofthefinancialliability(orpartthereof)extinguishedandtheinitialmeasurementamountoftheequityinstrumentsconsiderationpaidisrecognisedinprofitorloss.

8.8 derivative financial instruments

Thegroupusesderivativefinancialinstrumentstomanageitsexposuretoforeignexchangerisksarisingfromoperational,financingandinvestmentactivities.Thegroupdoesnotholdorissuederivativefinancialinstrumentsfor trading purposes. Derivative financial instruments comprise foreign exchange contracts. Derivatives arerecognised initially at fair value; directly attributable transaction costs are recognised in profit or loss whenincurred.Subsequenttoinitialrecognition,derivativesaremeasuredatfairvaluethroughprofitorloss.Fairvalueisdeterminedbycomparingthecontractedforwardratetothepresentvalueofthecurrentforwardrateofanequivalentcontractwiththesamematuritydate.However,wherederivativesqualifyforhedgeaccounting,recognitionofanyresultantgainorlossdependsonthenatureoftheitembeinghedged.

8.9 hedging

Where a derivative financial instrument is designated as a hedgeof the variability in cash flows attributabletoaparticularriskassociatedwitharecognisedassetorliability,afirmcommitmentifitisahedgeofforeignexchangerisk,orahighlyprobableforecasttransactionthatcouldaffectprofitorloss,theeffectivepartofanygainor losson thederivative financial instrument is recogniseddirectly inothercomprehensive incomeandpresentedinthecashflowhedgingreserveinequity.Anyineffectiveportionofchangesinthefairvalueofthederivativeisrecognisedimmediatelyinprofitorloss.Whenthehedgedfirmcommitmentorforecasttransactionresults intherecognitionofanon-financialassetoranon-financial liability,thecumulativeamountrecognisedinothercomprehensive incomeuptothetransactiondate isadjustedagainstthe initialmeasurementoftheassetorliability.Forothercashflowhedges,thecumulativeamountisrecognisedinprofitorlossintheperiodwhenthecommitmentor forecasttransactionaffectsprofitor loss.Wherethehedging instrumentorhedgerelationshipisterminatedbutthehedgedtransactionisstillexpectedtooccur,thecumulativeunrealisedgainorlossremainsinothercomprehensiveincomeandisrecognisedinaccordancewiththeabovepolicywhentheunderlyingtransactionoccurs.Ifthehedgedtransactionisnolongerexpectedtooccur,thenhedgeaccountingisdiscontinuedandthecumulativeunrealisedgainorlossisimmediatelyrecognisedinprofitorloss.Whereaderivative financial instrument isusedtoeconomicallyhedgethe foreignexchangeexposureofarecognisedmonetaryassetorliabilityandisnotdesignatedinahedgerelationshipthatqualifiesforhedgeaccounting,nohedgeaccountingisappliedandanygainorlossonthehedginginstrumentisrecognisedinprofitorloss.

8.10 derecognition

Financialassetsarederecognisedifthegroup’scontractualrightstothecashflowsfromthefinancialassetsexpireorifthegrouptransfersthefinancialassetstoanotherpartywithoutretainingcontrolorsubstantiallyallrisksandrewardsoftheasset.Financialliabilitiesarederecognisedifthegroup’sobligationsspecifiedinthecontractexpireoraredischargedorcancelled.

8.11 Offset

Financial assets and financial liabilities are offset and the net amount reported in the statement of financialpositionwhenthecompanyhasalegallyenforceablerighttosetofftherecognisedamounts,andintendseithertosettleonanetbasis,ortorealisetheassetandsettletheliabilitysimultaneously.

8.12 Finance income and expenses

Financeincomecomprisesinterestincomeonfundsinvested,dividendincomeandchangesinthefairvalueoffinancialassetsatfairvaluethroughprofitorloss,andgainsonhedginginstrumentsthatarerecognisedinprofitorloss.Interestincomeisrecognisedasitaccruesinprofitorloss,usingtheeffectiveinterestmethod.Dividendincome is recognised in profit or loss on the date that the group’s right to receive payment is established,

56

whichinthecaseofquotedsecuritiesistheex-dividenddate.Financeexpensescompriseinterestexpenseonborrowings,unwindingofthediscountonprovisionsandotherinterest-freeliabilities,changesinthefairvalueoffinancialassetsatfairvaluethroughprofitorloss,impairmentlossesrecognisedonfinancialassets,andlossesonhedginginstrumentsthatarerecognisedinprofitorloss.

9. FOrEigN CurrENCiES

9.1 Foreign currency transactions

Foreign currency transactions are converted to the respective functional currencies of group entities at theratesofexchangerulingatthedatesofthetransactions.Monetaryassetsandliabilitiesdenominatedinforeigncurrenciesatthefinancialyear-endaretranslatedtothefunctionalcurrencyattheexchangeratesrulingatthatdate.Gainsorlossesontranslationarerecognisedinprofitorloss.Non-monetaryitemsinaforeigncurrencythataremeasuredintermsofhistoricalcostaretranslatedusingtheexchangerateatthedateofthetransaction.

9.2 Foreign operations

The assets and liabilities of all foreign operations, including goodwill and fair value adjustments arising onacquisition,aretranslatedtoSouthAfricanRandatforeignexchangeratesrulingatthefinancialyear-end.TherevenuesandexpensesofforeignoperationsaretranslatedtoSouthAfricanRandatratesapproximatingtheforeignexchangeratesrulingatthedatesofthetransactions.Foreignexchangedifferencesarisingontranslationarerecogniseddirectlyinothercomprehensiveincome–theforeigncurrencytranslationreserve.Theforeigncurrencytranslationreserveapplicabletoaforeignoperationisreleasedtoprofitorlossasacapitalitemupondisposalofthatforeignoperation.

10. impAirmENT OF NON-FiNANCiAL ASSETS

Thecarryingamountsofthegroup’sassetsarereviewedatleastannuallytodeterminewhetherthereisanyindicationofimpairment.Ifthereisanindicationthatanassetmaybeimpaired,itsrecoverableamountisestimated.

Forgoodwill,intangibleassetsthathaveanindefiniteusefullifeandintangibleassetsthatarenotyetavailableforuse,therecoverableamountisestimatedannuallyorwheneverthereisanindicationthattheassetmaybeimpaired.

Therecoverableamountisthehigherofanasset’sfairvaluelesscoststosellanditsvalueinuse.

Inassessingvalueinuse,theexpectedfuturecashflowsfromtheassetarediscountedtotheirpresentvalueusingapre-taxdiscountratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyandtherisksspecifictotheasset.An impairment loss is recognised inprofitor losswheneverthecarryingamountofanassetexceeds itsrecoverableamount.

Foranassetthatdoesnotgeneratecashinflowsthatarelargelyindependentofthosefromotherassets,therecoverableamountisdeterminedforthecash-generatingunittowhichtheassetbelongs.Animpairmentlossisrecognisedinprofitorlosswheneverthecarryingamountofthecash-generatingunitexceedsitsrecoverableamount.Impairmentlossesrecognisedinrespectofcash-generatingunitsareallocatedfirsttoreducethecarryingamountofanygoodwillallocatedtothecash-generatingunitsandthen,toreducethecarryingamountofotherassetsintheunitonaproratabasis.

10.1 reversal of impairment of non-financial assets

Apreviouslyrecognisedimpairmentlossisreversedinprofitorlossifthereisanindicationthattheimpairmentlossno longerexistsandtherecoverableamount increasesasa resultofachange in theestimatesusedtodeterminetherecoverableamount,butnottoanamounthigherthanthecarryingamountthatwouldhavebeendetermined(netofdepreciationoramortisation)hadnoimpairmentlossbeenrecognisedinprioryears,exceptasdetailedbelow.Animpairmentlossinrespectofanequitysecurityclassifiedasavailable-for-saleisnotreversedthroughprofitorloss.Animpairmentlossinrespectofgoodwillisnotreversed.

11. impAirmENT OF FiNANCiAL ASSETS

Afinancialasset isassessedateachreportingdatetodeterminewhether there isanyobjectiveevidencethat it isimpaired.Afinancialassetisconsideredtobeimpairedifobjectiveevidenceindicatesthatoneormorelosseventshaveoccurredandhavehadanegativeeffectontheestimatedfuturecashflowsofthatasset.

The group considers the need for the impairment of financial assets at both a specific asset and collective level.Allindividuallysignificantfinancialassetsareassessedforspecificimpairment.Allindividuallysignificantfinancialassetsfoundnottobespecificallyimpairedarethencollectivelyassessedforanyimpairmentthathasbeenincurredbutnotyetidentified.

57

Financialassetsthatarenotindividuallysignificantarecollectivelyassessedforimpairmentbygroupingtogetherfinancialassetswithsimilarriskcharacteristics.

Inassessingcollective impairmentthegroupuseshistorical trendsof theprobabilityofdefault, timingofrecoveriesandtheamountoflossincurred,adjustedformanagement’sjudgementastowhethercurrenteconomicandcreditconditionsaresuchthattheactuallossesarelikelytobegreaterorlessthansuggestedbyhistoricaltrends.

Animpairmentlossinrespectofafinancialassetmeasuredatamortisedcostiscalculatedasthedifferencebetweenitscarryingamountandthepresentvalueoftheestimatedfuturecashflowsdiscountedattheasset’soriginaleffectiveinterestrate.Impairmentlossesarerecognisedinprofitorloss.Impairmentlossesfortradeandotherreceivablesarereflectedinanallowanceaccountagainsttradeandotherreceivables.Whenasubsequenteventcausestheamountofimpairmentlosstodecrease,thedecreaseinimpairmentlossisreversedthroughprofitorloss.

Whenadecline inthefairvalueofanavailable-for-sale financialassethasbeenrecognised inothercomprehensiveincomeand there isobjectiveevidence that theasset is impaired, thecumulative loss thathasbeen recognised inothercomprehensiveincomeisrecognisedinprofitorlosseventhoughthefinancialassethasnotbeenderecognised.Theamountofthecumulativelossthatisrecognisedinprofitorlossisthedifferencebetweentheacquisitioncostandcurrentfairvalue,lessanyimpairmentlossonthatfinancialassetpreviouslyrecognisedinprofitorloss.

12. iNTANgiBLE ASSETS

12.1 goodwill

Referto“Basisofconsolidation”above.

12.2 data capacity indefeasible rights of use (“irus”)

Thegrouprecognisesanintangibleassetarisingfromthecontractualandunconditional IRUofspecifieddatacapacityonidentifiablecablenetworksforatermthatsubstantiallycoincideswiththeestimatedeconomicandtechnologicaluseful lifeof theunderlyingnetwork.The intangibleasset ismeasuredatcost lessaccumulatedamortisationandaccumulatedimpairmentlosses.Theestimatedusefullifeisdeterminedtobetheshorterofmanagement’sestimateoftheeconomicandtechnologicalusefullifeoftheunderlyingnetworkorthecontractualtermoftheunderlyingIRUagreement.

12.3 research and development

Expenditureonresearchactivities,undertakenwiththeprospectofgainingnewscientificortechnicalknowledgeandunderstanding, is recognisedasanexpenseas incurred.Expenditureondevelopmentactivities,wherebyresearchfindingsareappliedtoaplanordesignfortheproductionofneworsubstantiallyimprovedproductsandprocesses,iscapitalisedonlyifdevelopmentcostscanbemeasuredreliably,theproductorprocessistechnicallyandcommercially feasible, futureeconomicbenefitsareprobableandthegroup intendstoandhassufficientresourcestocompletedevelopmentandtouseorselltheasset.Theexpenditurecapitalisedincludesthecostofmaterials,directlabourandanappropriateproportionofoverheads.Capitaliseddevelopmentexpenditureismeasuredatcostlessaccumulatedamortisationandimpairmentlosses.Otherdevelopmentexpenditureisrecognisedasanexpenseasincurred.

12.4 Other intangible assets

Other intangibleassets,consistingoftradenamesandcustomerrelationshipsthatareacquiredbythegroup,aswellas internallydevelopedsoftware,whichhavefiniteuseful lives,aremeasuredatcost lessaccumulatedamortisationandimpairmentlosses.Expenditureincurredoninternallydevelopedsoftwareisonlycapitalisedifitmeetsthedevelopmentexpenditurerequirementstobecapitalisedasdescribedabove.Subsequentexpenditureoncapitalisedintangibleassetsiscapitalisedonlywhenitincreasesthefutureeconomicbenefitsembodiedinthespecificassettowhichitrelates.Allotherexpenditureisexpensedasincurred.

12.5 Amortisation

Amortisationisrecognisedinprofitorlossonastraight-linebasisovertheestimatedusefullivesofintangibleassetsfromthedatetheyareavailableforuseunlesssuchlivesareindefinite.Theestimatedusefullivesforthecurrentandcomparativeperiodsareasfollows:

• datacapacityindefeasiblerightsofuse 15to20years• tradenames,designs,patentsandtrademarks 3to10years• customerrelationships 1to10years

• proprietarysoftware 2to3years

58

Amortisationmethods,useful livesandresidualvaluesarereviewedateachfinancialyear-endandadjusted ifappropriate.

13. iNvENTOriES

Inventories aremeasured at the lowerof cost and net-realisable value taking into accountmarket conditions andtechnological changes. Cost is determined on the first-in, first-out and weighted average cost methods.Work andcontracts in progress and finished goods includedirect costs and an appropriate portionof attributableoverheadexpenditurebasedonnormalproductioncapacity.Netrealisablevalueistheestimatedsellingpriceintheordinarycourseofbusiness,lesstheestimatedcostsofcompletionandsellingexpenses.

14. iNvESTmENTS iN SuBSidiAriES

Investmentsinsubsidiariesaremeasuredatcost,lessaccumulatedimpairmentlosses.

15. NON-CurrENT ASSETS hELd-FOr-SALE ANd diSCONTiNuEd OpErATiONS

Non-currentassetsareclassifiedasheld-for-saleiftheircarryingamountwillberecoveredprincipallythroughasaletransaction,notthroughcontinueduse.Theseassetsmaybeacomponentofanentity,adisposalgrouporanindividualnon-currentasset.Uponinitialclassificationasheld-for-sale,non-currentassetsanddisposalgroupsarerecognisedatthelowerofcarryingamountandfairvaluelesscosttosell.Anyimpairmentlossesarisingarerecognisedinprofitorlossascapitalitems.Adiscontinuedoperationisacomponentofthegroup’sbusinessthathasbeendisposedoforisclassifiedasheld-for-saleandthatrepresentsaseparatemajorlineofbusinessorgeographicalareaofoperationsorasubsidiaryacquiredexclusivelywithaviewtoresale.Classificationasadiscontinuedoperationoccursupontheearlierofdisposalorwhentheoperationmeetsthecriteriatobeclassifiedasheld-for-sale.Whenanoperationisclassifiedasadiscontinuedoperation,thecomparativestatementofcomprehensive incomeandstatementofcashflowsarere-presentedasiftheoperationhasbeendiscontinuedfromthestartofthecomparativeperiod.

16. LEASES

16.1 Operating leases

Leaseswhere the lessor retains the risks and rewardsofownershipof theunderlying asset are classified asoperatingleases.Paymentsmadeunderoperatingleasesarerecognisedinprofitorlossonastraight-linebasisovertheperiodofthelease.

16.2 Finance leases

Leasesthattransfersubstantiallyalltherisksandrewardsofownershipoftheunderlyingassettothegroupareclassifiedasfinanceleases.Assetsacquiredintermsoffinanceleasesarecapitalisedattheloweroffairvalueandthepresentvalueoftheminimumleasepaymentsatinceptionofthelease,anddepreciatedovertheshorteroftheestimatedusefullifeoftheassetortheleasetermifthereisnoreasonablecertaintythatthegroupwillobtainownershipattheendoftheleaseterm.Thecapitalelementoffutureobligationsundertheleasesisincludedasaliabilityinthestatementsoffinancialposition.Leasepaymentsareallocatedusingtheeffectiveinterestmethodtodeterminetheleasefinancecost,whichisrecognisedinprofitorlossovertheleaseperiod,andthecapitalrepayment,whichreducestheliabilitytothelessor.

17. prOpErTy, pLANT ANd EquipmENT

17.1 Owned assets

Property, plant and equipment are measured at cost less accumulated depreciation and impairment losses.Whencomponentsofanitemofproperty,plantandequipmenthavedifferentusefullives,thosecomponentsareaccountedforasseparateitemsofproperty,plantandequipment.Costincludesexpenditurethatisdirectlyattributabletotheacquisitionoftheasset.Purchasedsoftwarethatisintegraltothefunctionalityoftherelatedequipmentiscapitalisedaspartofthatequipment.

17.2 Subsequent costs

Thegrouprecognisesinthecarryingamountofanitemofproperty,plantandequipmentthecostofreplacingpartofsuchanitemwhenthecostisincurred,ifitisprobablethatadditionalfutureeconomicbenefitsembodiedwithintheitemwillflowtothegroupandthecostofsuchitemcanbemeasuredreliably.Thecarryingamount

59

ofthereplaceditemofproperty,plantandequipmentisderecognised.Allothercostsarerecognisedinprofitorlossasanexpensewhenincurred.

17.3 depreciation

Depreciationisrecognisedinprofitorlossforeachcategoryofassetsonastraight-linebasisovertheirexpectedusefullivestoestimatedresidualvalues.Landisnotdepreciated.

Theestimatedusefullivesforthecurrentandcomparativeperiodsareasfollows:

• buildings 20to50years• plantandmachinery 3to20years• furnitureandequipment 5to20years• dataInfrastructure 8years• motorvehicles 4to8years

• ITequipmentandsoftware 2to8years

• leaseholdimprovements(includedinlandandbuildings)shorterofleaseperiodorusefullifeofasset

Thedepreciationmethods,usefullivesandresidualvaluesarereassessedateachfinancialyear-endandadjustedifappropriate.Gainsandlossesarisingonthedisposalofproperty,plantandequipmentareincludedascapitalitemsinprofitorloss.

18. prOviSiONS

18.1 general

Provisionsarerecognisedwhenthegrouphasapresentlegalorconstructiveobligationasaresultofpastevents,forwhichitisprobablethatanoutflowofeconomicbenefitswillberequiredtosettletheobligation,andwhereareliableestimatecanbemadeoftheamountoftheobligation.Provisionsaredeterminedbydiscountingtheexpectedfuturecashflowsatapre-taxdiscountratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyand,whereappropriate,therisksspecifictotheliability.

18.2 Warranties and fault rectification

Aprovision forwarrantiesand fault rectification is recognisedwhen theunderlyingproductsor servicesaresold.Theprovisionisbasedonhistoricalwarrantyandfaultrectificationdata,claimsmadeandaweightingofallpossibleoutcomesagainsttheirassociatedprobabilities.

19. ShArE-BASEd pAymENT TrANSACTiONS

19.1 Equity-settled

Thefairvalueofshareoptionsanddeferreddeliverysharesgrantedtoemployeesisrecognisedasanemployeeexpensewithacorrespondingincreaseinequity.Thefairvalueismeasuredatgrantdateandexpensedovertheperiodduringwhichtheemployeesarerequiredtoprovideservices inordertobecomeunconditionallyentitledtotheequityinstruments.Thefairvalueoftheinstrumentsgrantedismeasuredusinggenerallyacceptedvaluation techniques, taking intoaccount the termsandconditionsuponwhich the instruments aregranted.Theamountrecognisedasanexpenseisadjustedtoreflecttheactualnumberofshareoptionsanddeferreddeliverysharesthatvest,exceptwhereforfeitureisonlyduetothesharepricesnotachievingthethresholdforvesting.Thisaccountingpolicyhasbeenappliedtoallequityinstrumentsgrantedafter7November2002thathadnotyetvestedat1January2005.

19.2 Cash-settled

Inthepastsharelinkedinstrumentshavebeengrantedtocertainemployeesinthegroup.Thefairvalueoftheamountpayabletotheemployeeisrecognisedasanexpensewithacorrespondingincreaseinliabilities.Thefairvalueisinitiallymeasuredatgrantdateandexpensedovertheperiodduringwhichtheemployeesarerequiredtoprovideservicesinordertobecomeunconditionallyentitledtopayment.Thefairvalueoftheinstrumentsgrantedismeasuredusinggenerallyacceptedvaluationtechniques,takingintoaccountthetermsandconditionsuponwhichtheinstrumentsaregranted.Theliabilityisremeasuredateachfinancialyear-endandatsettlementdate.Anychangesinthefairvalueoftheliabilityarerecognisedasemployees’remunerationinprofitorloss.

60

19.3 group share-based payment transactions

Transactionsinwhichaparentgrantsrightstoitsequityinstrumentsdirectlytotheemployeesofitssubsidiariesareclassifiedasequitysettledinthefinancialstatementsofthesubsidiary,asitreceivedthebenefitoftheservicesrenderedandhadnoobligationtosettletheaward.Thesubsidiaryrecognisestheservicesacquiredwiththeshare-basedpaymentasanexpenseandrecognisesacorrespondingincreaseinequityforacapitalcontributionfrom theparent for those services acquired.Theparent recognises in equity the equity settled share-basedpaymentandrecognisesacorrespondingincreaseintheinvestmentinsubsidiary.Arechargearrangementexistswherebythesubsidiaryisrequiredtofundthedifferencebetweentheexercisepriceontheshareoptionsandthemarketpriceoftheshareatthetimeofexercisingtheoption.Therechargearrangementisaccountedforseparatelyfromtheunderlyingequitysettledshare-basedpaymentuponinitialrecognition,asfollows:

• Thesubsidiaryrecognisesarechargeliabilityandacorrespondingadjustmentagainstequityforthecapitalcontributionrecognisedinrespectofthesharebasedpayment.

• The parent recognises a recharge asset and a corresponding adjustment to the carrying amount of theinvestmentinthesubsidiary.

Subsequent to initial recognition the recharge arrangement is re-measured at fair value at each subsequentreportingdateuntilsettlementdatetotheextentvested.Wheretherechargeamountrecognisedisgreaterthantheinitialcapitalcontributionrecognisedbythesubsidiaryinrespectoftheshare-basedpayment,theexcessis recognisedasanetcapitaldistributiontotheparent.Theamountof therecharge inexcessof thecapitalcontributionrecognisedasan increase intheinvestment insubsidiary isdeferredandrecognisedasdividendincomebytheparentwhensettledbythesubsidiary.

19.4 B-BBEE transactions

Wheregoodsor servicesareconsidered tohavebeen received fromB-BBEEpartnersasconsideration forequityinstrumentsofthegroup,thesetransactionsareaccountedforasshare-basedpaymenttransactions,evenwhentheentitycannotspecificallyidentifythegoodsorservicesreceived.Thisaccountingpolicyisapplicabletoequityinstrumentsthathadnotvestedby1January2005(asabove).

20. rEvENuE

Revenuefromthesaleofgoodsismeasuredatthefairvalueoftheconsiderationreceivedorreceivable,netofreturnsandallowances,tradediscounts,volumerebatesandvalue-addedtax.Revenueisrecognisedwhenthesignificantrisksandrewardshavebeentransferredtothebuyer,recoveryoftheconsiderationisprobable,theassociatedcostsandpossiblereturnofgoodscanbeestimatedreliably, there isnocontinuingmanagement involvementwiththegoodsandtheamountofrevenuecanbemeasuredreliably.Revenuefromservicesrenderedisrecognisedinprofitorlossinproportiontothestageofcompletionofthetransactionatreportingdate.Thestageofcompletionistimebasedanddependentonthetermsofthecontractswhichcanvaryfromsixto36months,dependingontheserviceoffered.

20.1 Customer financial lease receivables

Customerfinancialleasereceivablesrepresentamountsduebycustomersinrespectoftheequipmentcomponentofairtimeanddatausageservicecontracts.Theamountsduearereceivableoverthecontractterm.

20.2 Contract fulfilment cost

Contract fulfilment costs includehardware, fitment, commissions andother costs directly attributable to thenegotiationandconclusionofcustomerservicecontracts.Thesecostsareamortisedovertheexpectedperiodofthecustomerservicecontract.

21. ShArE CApiTAL

21.1 Ordinary shares

Ordinarysharesareclassifiedasequity.Incrementalcostsdirectlyattributabletotheissueofordinarysharesandshareoptionsarerecognisedasadeductionfromequity,netofanytaxeffects.

21.2 preference share capital

Preferencesharecapitalisclassifiedasequityifitisnon-redeemableandanydividendsarediscretionary,orisredeemablebutonly at the company’soption.Dividendsonpreference share capital classified asequity arerecognisedasdistributionswithinequity.Preferencesharecapitalisclassifiedasaliabilityifitisredeemableon

61

aspecificdateorat theoptionof theshareholdersor ifdividendpaymentsarenotdiscretionary.Dividendsthereonarerecognisedinprofitorlossasinterestexpense.

21.3 repurchase of share capital

Whensharecapitalrecognisedasequityisrepurchased,theamountoftheconsiderationpaid,includingdirectlyattributablecosts,isrecognisedasadeductionfromequity.Repurchasedsharesheldbysubsidiariesareclassifiedastreasurysharesandpresentedasadeductionfromtotalequity.

22. TAXATiON

Incometaxexpensecomprisescurrentanddeferredtax.Incometaxexpenseisrecognisedinprofitorlossexcepttotheextentthatitrelatestoitemsrecogniseddirectlyinequityorinothercomprehensiveincome,inwhichcaseitisrecognisedinequityorothercomprehensiveincomerespectively.

22.1 Current tax

Currenttaxcomprisestaxpayablecalculatedonthebasisoftheexpectedtaxableincomefortheyear,usingthetaxratesenactedorsubstantivelyenactedatthefinancialyear-end,andanyadjustmentoftaxpayableforpreviousyears.

22.2 deferred tax

Deferredtaxisrecognisedontemporarydifferencesthatarise.Temporarydifferencesaredifferencesbetweenthecarryingamountsofassetsandliabilitiesforfinancialreportingpurposesandtheirtaxvalues.Deferredtaxisnotrecognisedforthefollowingtemporarydifferences:theinitialrecognitionofgoodwill,theinitialrecognitionofassetsorliabilitiesinatransactionthatisnotabusinesscombinationandthataffectsneitheraccountingnortaxableprofitorloss,anddifferencesrelatingtoinvestmentsinsubsidiariestotheextentthatthegroupisabletocontrolthetimingofthereversalofthetemporarydifferencesanditisprobablethattheywillnotreverseintheforeseeablefuture.Theamountofdeferredtaxprovidedisbasedontheexpectedmannerofrealisationorsettlementofthecarryingamountofassetsandliabilitiesusingtaxratesenactedorsubstantivelyenactedatthefinancialyear-end.Theeffectondeferredtaxofanychangesintaxratesisrecognisedinprofitorloss,excepttotheextentthatitrelatestoitemspreviouslychargedorcrediteddirectlytoothercomprehensiveincome.Adeferredtaxassetisrecognisedtotheextentthatitisprobablethatfuturetaxableprofitswillbeavailableagainstwhichtheunusedtaxlossesanddeductibletemporarydifferencescanbeutilised.Deferredtaxassetsarereviewedateachfinancialyear-endandarereducedtotheextentthatitisnolongerprobablethattherelatedtaxbenefitwillberealised.Intheeventthattheapplicabletaxationrate(s)arechangedfromthoseappliedinthecomparativefinancialreportingyear,theopeningbalanceofthedeferredtaxationliabilityisadjustedforthechangeinthetaxationrates.Deferredtaxationassetsandliabilitiesareoffsetifthereisalegallyenforceablerighttooffsetcurrenttaxationliabilitiesandassetsandtheyrelatetoincometaxationleviedbythesameauthorityonthesametaxableentity,orondifferenttaxationentities,buttheyintendtosettlecurrenttaxationliabilitiesandassetsonanetbasisortheirtaxationassetsandliabilitieswillbereleasedsimultaneously.

22.3 Secondary tax on companies

Secondarytaxoncompanies(“STC”)isrecognisedintheyeardividendsaredeclared,netofdividendsreceived.AdeferredtaxassetisrecognisedonunutilisedSTCcreditswhenitisprobablethatsuchunusedSTCcreditswillbeutilisedinthefuture.

22.4 dividend withholding tax

Dividendwithholdingtaxisataxonshareholdersreceivingdividendsandisapplicabletoalldividendsdeclaredonorafter1April2012.Thegroupwithholdsdividendstaxonbehalfofitsshareholdersatarateof15%ondividendsdeclared.Amountswithheldarenotrecognisedaspartofthegroup’staxchargebutratheraspartof the dividendpaid recogniseddirectly in equity.Wherewithholding tax iswithheldondividends received,thedividendisrecognisedatthegrossamountwiththerelatedwithholdingstaxrecognisedaspartofthetaxexpenseunlessitisotherwisereimbursableinwhichcaseitisrecognisedasanasset

23. EArNiNgS pEr ShArE

Thegrouppresentsbasicanddilutedearningspershare(EPS)dataforitsordinarysharesandparticipatingpreferenceshares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary and participating preferenceshareholders of the company by the weighted average number of ordinary and participating preference shares

62

outstandingduringtheperiod.DilutedEPSisdeterminedbyadjustingtheprofitorlossattributabletoordinaryandparticipatingpreferenceshareholdersandtheweightedaveragenumberofordinaryandparticipatingpreferencesharesoutstandingfortheeffectsofalldilutivepotentialordinaryandparticipatingpreferenceshares,whichcompriseshareoptionsgrantedtoemployeesandconvertibleoptionsgrantedtoafunder.

24. OpErATiNg SEgmENTS

An operating segment is a component of the group that engages in business activities from which it may earnrevenues and incur expenses, including revenues and expenses that relate to transactionswith any of the group’sothercomponents.Thegroupdeterminesandpresentsoperatingsegmentsbasedontheinformationthatisinternallyprovidedtothegroupchiefexecutiveofficer(“CEO”),whoisthegroup’schiefoperatingdecisionmaker.Anoperatingsegment’soperatingresultsarereviewedregularlybytheCEOtomakedecisionsaboutresourcestobeallocatedtothesegmentandassessitsperformance,andforwhichdiscretefinancialinformationisavailable.SegmentresultsthatarereportedtotheCEOincludeitemsdirectlyattributabletoasegmentaswellasthosethatcanbeallocatedonareasonablebasis.Unallocateditemscomprisemainlycorporateassets(primarilythegroup’sheadquarters).

63

ANNEXurE 5

hiSTOriCAL FiNANCiAL iNFOrmATiON OF ALTrON

AudiTEd rESuLTS FOr ThE yEArS ENdEd 28 FEBruAry 2011 TO 28 FEBruAry 2013

ThereportofhistoricalfinancialinformationistheresponsibilityoftheDirectorsofAltron.

SummAriSEd CONSOLidATEd STATEmENT OF COmprEhENSivE iNCOmE

r million

Auditedyear ended

28 Feb 13

Auditedyear ended

29 Feb 12

Auditedyear ended

28 Feb 11

revenue 25 049 23 563 22 810

EBITDA 1579 1946 2099Depreciationandamortisation (513) (562) (575)

Operating profit before capital items 1 066 1 384 1 524Capitalitems (1449) (900) (291)

result from operating activities (383) 484 1 233Financeincome 59 71 64Financeexpense (226) (156) (163)Shareof(loss)/profitfromassociates 5 (1) 2

(Loss)/profit before taxation (545) 398 1 136Taxation (384) (477) (437)

(Loss)/profit for the year (929) (79) 699

Other comprehensive (loss)/incomeForeigncurrencytranslationdifferencesinrespectofforeignoperations 310 95 (312)Effectiveportionofchangesinthefairvalueofcashflowhedges – 9Realisationofnegativeforeigncurrencytranslationreserveondisposal 196 – –Fairvalueadjustmentonavailable-for-saleinvestments (5) – –Incometaxonothercomprehensiveincome – (2)

Other comprehensive (loss)/income for the year, net of taxation 501 95 (305)

Total comprehensive (loss)/income for the year (428) 16 394

(Loss)/profit attributable to:Non-controllinginterests (631) (253) 157Altronequityholders (298) 174 542

(Loss)/profit for the year (929) (79) 699

Total comprehensive (loss)/income attributable to:Non-controllinginterests (439) (212) 13Altronequityholders 11 228 381

Total comprehensive (loss)/income for the year (428) 16 394

Basic (loss)/earnings per share (cents) (94) 55 172diluted basic (loss)/earnings per share (cents) (86) 55 168

64

SummAriSEd CONSOLidATEd BALANCE ShEET

r million

Auditedyear ended

28 Feb 13

Auditedyear ended

29 Feb 12

Auditedyear ended

28 Feb 11

ASSETS

Non-current assets 4 757 4 695 5 329

Property,plantandequipment 1822 2300 2413Intangibleassets,includinggoodwill 1613 1732 2274Associates 80 74 10Otherinvestments 673 233 235Rentalfinanceadvances 45 67 61Loansreceivable 414 150 134Deferredtaxation 110 139 202

Current assets 8 210 7 585 7 090

Inventories 2653 2475 2336Tradeandotherreceivables,includingderivatives 4255 3872 3373Assetsclassifiedasheld-for-sale – 135 –Cashandcashequivalents 1302 1103 1381

Total assets 12 967 12 280 12 419

EquiTy ANd LiABiLiTiES

Total equity 5 220 5 813 6 314

Non-current liabilities 787 936 1 020

Loans 609 707 758Empowermentfundingobligation 17 47 72Provisions 25 20 23Deferredincome – 51 46Deferredtaxation 136 111 121

Current liabilities 6 960 5 531 5 085

Loans 1308 613 481Empowermentfundingobligation 29 24 17Bankoverdraft 385 550 128Tradeandotherpayables,includingderivatives 5105 4079 4049Provisions 100 118 164Liabilitiesclassifiedasheld-for-sale – 67 –Taxationpayable 33 80 246

Total equity and liabilities 12 967 12 280 12 419

Net asset value per share (cents) 1 498 1 583 1 607

65

SummAriSEd CONSOLidATEd STATEmENT OF CASh FLOWS

r million

Auditedyear ended

28 Feb 13

Auditedyear ended

29 Feb 12

Auditedyear ended

28 Feb 11

Cash flows from operating activities 1 060 1 1 077

Cashgeneratedbyoperations 2064 1230 2057Interestreceived 47 66 64Interestpaid (240) (156) (162)Dividendsreceived 9 4 2Taxationpaid (387) (612) (419)

Cash available from operating activities 1 493 532 1 542

Dividendspaid–Altronequityholders (290) (341) (284)–Non-controllinginterest (143) (190) (181)

Cash flows utilised in investing activities (1 588) (768) (686)

Acquisitionofsubsidiaries (97) (101) (79)Proceedsondisposalofsubsidiary (453) 47 –Proceedsondisposalofproperty,plantandequipment 24 55 31Increaseofrentalfinanceadvances 22 (1) (3)Additionstointangibleassets (164) (130) (121)Additionstoproperty,plantandequipment (499) (557) (527)Otherinvestingactivities (421) (81) 13

Cash flows from/(utilised) in financing activities 859 37 (307)

Loansadvanced 974 374 –Loansrepaid (115) (340) (316)Proceedsonshareissue – 3 9

Net(decrease)/increaseincashandcashequivalents 331 (730) 84Netcashandcashequivalentsatthebeginningoftheyear 553 1253 1174Effectofexchangeratefluctuationsoncashheld 33 19 (5)Cashclassifiedasheldforsale – 11 –

Netcashandcashequivalentsattheendoftheyear 917 553 1253

66

Su

mm

Ar

iSE

d C

ON

SO

Lid

AT

Ed

ST

AT

Em

EN

T O

F C

hA

Ng

ES

iN

Eq

uiT

y 

r m

illio

n

Sha

re

capi

tal a

nd

prem

ium

Tre

asur

y sh

ares

res

erve

sr

etai

ned

ear

ning

sTo

tal

No

n-co

ntro

lling

in

tere

sts

Tota

l eq

uity

Bal

ance

at

28 F

ebru

ary

2010

(au

dite

d)2

236

(299

)(1

259

)4

067

4 74

51

610

6 35

5To

tal c

omp

rehe

nsiv

e in

com

e fo

r th

e ye

arPr

ofit

for

the

year

––

–54

254

215

769

9

oth

er c

omp

rehe

nsiv

e in

com

eFo

reig

ncu

rren

cyt

rans

latio

ndi

ffere

nces

inr

espe

cto

ffo

reig

n op

erat

ions

––

(168

)–

(168

)(1

44)

(312

)Ef

fect

ive

port

ion

ofc

hang

esin

the

fair

valu

eof

cas

hflo

wh

edge

s–

–7

–7

–7

Tota

loth

erc

ompr

ehen

sive

inco

me

––

(161

)–

(161

)(1

44)

(305

)

Tota

lcom

preh

ensiv

ein

com

efo

rth

eye

ar–

–(1

61)

542

381

1339

4

Tran

sact

ions

wit

h ow

ners

, rec

orde

d di

rect

ly in

equ

ity

Con

trib

utio

ns b

y an

d di

stri

buti

ons

to o

wne

rs

Div

iden

dst

oeq

uity

hol

ders

––

–(2

84)

(284

)(1

81)

(465

)Iss

ueo

fsha

rec

apita

l5

––

–5

49

Shar

e-ba

sed

paym

ent

tran

sact

ions

––

14–

147

21

Tota

lcon

trib

utio

nsb

yan

ddi

strib

utio

nst

oow

ners

5–

14(2

84)

(265

)(1

70)

(435

)

Cha

nges

in o

wne

rshi

p in

tere

sts

in s

ubsi

diar

ies

Intr

oduc

tion

ofn

on-c

ontr

ollin

gin

tere

sts

––

214

–21

4(2

14)

–

Tota

lcha

nges

ino

wne

rshi

pin

tere

sts

ins

ubsid

iarie

s–

–21

4–

214

(214

)–

Tota

ltra

nsac

tions

with

ow

ners

5–

228

(284

)(5

1)(3

84)

(435

)

Bal

ance

at

28 F

ebru

ary

2011

(au

dite

d)2

241

(299

)(1

192

)4

325

5 07

51

239

6 31

4

Tota

l com

pre

hens

ive

inco

me

for

the

year

Prof

itfo

rth

eye

ar–

––

174

174

(253

)(7

9)

oth

er c

omp

rehe

nsiv

e in

com

eFo

reig

ncu

rren

cyt

rans

latio

ndi

ffere

nces

inr

espe

cto

ffor

eign

op

erat

ions

––

54–

5441

95

Tota

loth

erc

ompr

ehen

sive

inco

me

––

54–

5441

95

Tota

lcom

preh

ensiv

ein

com

efo

rth

eye

ar–

–54

174

228

(212

)16

67

r m

illio

n

Sha

re

capi

tal a

nd

prem

ium

Tre

asur

y sh

ares

res

erve

sr

etai

ned

ear

ning

sTo

tal

No

n-co

ntro

lling

in

tere

sts

Tota

l eq

uity

Tran

sact

ions

wit

h ow

ners

, rec

orde

d di

rect

ly in

equ

ity

Con

trib

utio

ns b

y an

d di

stri

buti

ons

to o

wne

rs

Issue

ofs

hare

cap

ital

3–

––

3–

3D

ivid

ends

to

equi

tyh

olde

rs–

––

(341

)(3

41)

(190

)(5

31)

Shar

e-ba

sed

paym

ent

tran

sact

ions

––

27–

276

33

Tota

lcon

trib

utio

nsb

yan

ddi

strib

utio

nst

oow

ners

3–

27(3

41)

(311

)(1

84)

(495

)

Cha

nges

in o

wne

rshi

p in

tere

sts

in s

ubsi

diar

ies

Buy

back

ofn

on-c

ontr

ollin

gin

tere

sts

––

11–

11(3

0)(1

9)D

ispos

alo

fsub

sidia

ry–

––

––

(3)

(3)

Tota

lcha

nges

ino

wne

rshi

pin

tere

sts

ins

ubsid

iarie

s–

–11

–11

(33)

(22)

Tota

ltra

nsac

tions

with

ow

ners

3–

38(3

41)

(300

)(2

17)

(517

)

Bal

ance

at

29 F

ebru

ary

2012

(au

dite

d)2

244

(299

)(1

100

)4

158

5 00

381

05

813

Tota

l com

pre

hens

ive

inco

me

for

the

year

Loss

for

the

year

––

–(2

98)

(298

)(6

31)

(929

)

oth

er c

omp

rehe

nsiv

e in

com

eFo

reig

ncu

rren

cyt

rans

latio

ndi

ffere

nces

inr

espe

cto

ffo

reig

n op

erat

ions

––

192

–19

211

831

0Re

alisa

tion

ofn

egat

ive

fore

ign

curr

ency

tra

nsla

tion

rese

rve

on d

ispos

al12

012

076

196

Fair

valu

ead

just

men

ton

ava

ilabl

e-fo

r-sal

ein

vest

men

ts–

–(3

)–

(3)

(2)

(5)

Tota

loth

erc

ompr

ehen

sive

inco

me

309

309

192

501

Tota

lcom

preh

ensiv

ein

com

efo

rth

eye

ar–

–30

9–

11(4

39)

(428

)

Tran

sact

ions

wit

h ow

ners

, rec

orde

d di

rect

ly in

equ

ity

––

Con

trib

utio

ns b

y an

d di

stri

buti

ons

to o

wne

rs

Issue

ofs

hare

cap

ital

10 

(10)

––

––

Div

iden

dst

oeq

uity

hol

ders

––

–(2

90)

(290

)(1

43)

(433

)Sh

are-

base

dpa

ymen

ttr

ansa

ctio

ns–

–17

–17

623

Tota

lcon

trib

utio

nsb

yan

ddi

strib

utio

nst

oow

ners

10–

7(2

90)

(273

)(1

37)

(410

)

68

r m

illio

n

Sha

re

capi

tal a

nd

prem

ium

Tre

asur

y sh

ares

res

erve

sr

etai

ned

ear

ning

sTo

tal

No

n-co

ntro

lling

in

tere

sts

Tota

l eq

uity

Cha

nges

in o

wne

rshi

p in

tere

sts

in s

ubsi

diar

ies

Intr

oduc

tion

ofn

on-c

ontr

ollin

gin

tere

st–

––

––

33

Disp

osal

ofo

pera

tions

––

––

–24

224

2

Tota

lcha

nges

ino

wne

rshi

pin

tere

sts

ins

ubsid

iarie

s–

––

––

245

245

Tota

ltra

nsac

tions

with

ow

ners

10–

7(2

90)

(273

)(1

08)

(165

)

Bal

ance

at

28 F

ebru

ary

2013

(au

dite

d)2

254

(299

)(7

84)

3 57

04

741

479

5 22

0

69

ANNEXurE 6

EXChANgE CONTrOL rEguLATiONS

ThefollowingisasummaryoftheExchangeControlRegulations.ItisintendedasaguideonlyandisnotacomprehensivestatementoftheExchangeControlRegulationswhichapplytoSchemeParticipants.SchemeParticipantswhohaveanyqueriesregardingtheExchangeControlRegulationsshouldcontacttheirownprofessionaladviserswithoutdelay.

1. rESidENTS OF ThE COmmON mONETAry ArEA

Inthecaseof:

Scheme Participants holding CertificatedAltech Shares whose registered addresses in the Register are within theCommonMonetaryArea andwhoseDocumentsofTitle arenot restrictivelyendorsed in termsof theExchangeControlRegulations, theSchemeConsiderationwillbepostedor transferred to suchSchemeParticipantsbyEFT(shouldthisoptionhavebeenselectedontheformofelection,surrenderandtransfer(blue));

or

SchemeParticipantsholdingDematerialisedAltechShareswhoseregisteredaddressesintheRegisterarewithintheCommon MonetaryArea andwhose accountswith theirCSDPor Broker have not been restrictively designatedin termsof theExchangeControlRegulations, theSchemeConsiderationwillbecrediteddirectly to theaccountsnominated for therelevantSchemeParticipantsby theirdulyappointedCSDPorBroker in termsof theCustodyAgreementwiththeirCSDPorBroker.

2. EmigrANTS FrOm ThE COmmON mONETAry ArEA

2.1 TheSchemeConsiderationisnotfreelytransferablefromSouthAfricaandmustbedealtwithintermsoftheExchangeControlRegulations.

2.2 TheSchemeConsiderationdue toaCertificatedAltechShareholderwho isanemigrant fromSouthAfrica,whoseregisteredaddress isoutsidetheCommonMonetaryAreaandwhoseDocumentsofTitlehavebeenrestrictivelyendorsedundertheExchangeControlRegulationswillbedepositedinablockedRandaccountwiththeauthoriseddealerinforeignexchangeinSouthAfricacontrollingtheSchemeParticipant’sblockedassetsinaccordancewithhisinstructions,againstdeliveryoftherelevantDocumentsofTitle.

2.2.1 IntermsofarecentrelaxationtotheExchangeControlrulings,emigrantsmayexternalisetheSchemeConsiderationbymaking application to the Financial SurveillanceDepartmentof the SouthAfricanReserve Bank via the requisite authorised dealer channel. Previously, a 10% levy would have beenpayableonexternalisation.Thisishowever,nolongerthepositionandtheSchemeConsiderationmay,onapplication,beexternalisedfreeofthelevy.

2.2.2 TheauthoriseddealerreleasingtherelevantdocumentsoftitleintermsoftheSchememustcountersigntheformofelection,surrenderandtransfer(blue)therebyindicatingthattheSchemeConsiderationwillbeplaceddirectlyinitscontrol.

2.2.3 Theattachedformofelection,surrenderandtransfer(blue)makesprovisionforthedetailsandsignatureoftheauthoriseddealerconcernedtobeprovided.

2.3 Allothernon-residentsoftheCommonMonetaryArea

2.3.1 TheSchemeConsiderationduetoaCertificatedAltechShareholderwhoisanon-residentofSouthAfricaandwhohasneverresidedintheCommonMonetaryArea,whoseregisteredaddressisoutsidetheCommonMonetaryAreaandwhoseDocumentsofTitlehavebeenrestrictivelyendorsedundertheExchangeControlRegulations,willbedepositedwiththeauthoriseddealerinforeignexchangeinSouthAfricanominatedbysuchSchemeParticipant. Itwillbe incumbentontheSchemeParticipantconcernedtoinstructthenominatedauthoriseddealerastothedisposaloftheamountsconcerned,againstdeliveryoftherelevantDocumentsofTitle.

2.3.2 Theformofelection,surrenderandtransfer(blue)attachedtothisCircularmakesprovisionforthenominationrequiredintermsoftheparagraph2.3.1above.Iftheinformationregardingtheauthoriseddealer isnotgiven in termsofsuchparagraph2.3.1 theSchemeConsiderationwillbeheld in trustbyAltech for the Scheme Participants concerned pending receipt of the necessary information orinstruction.

70

ANNEXurE 7

SECTiON 115 – rEquirEd ApprOvAL FOr TrANSACTiONS CONTEmpLATEd iN ChApTEr 5 OF ThE COmpANiES ACT

(1) Despitesection65,andanyprovisionofacompany’sMemorandumofIncorporation,oranyresolutionadoptedbyitsboardorholdersofitssecurities,tothecontrary,acompanymaynotdisposeof,orgiveeffecttoanagreementorseriesofagreementstodisposeof,allorthegreaterpartofitsassetsorundertaking,implementanamalgamationoramerger,orimplementaschemeofarrangement,unless:

(a) thedisposal,amalgamationormerger,orschemeofarrangement:

(i) asbeenapprovedintermsofthissection;or

(ii) ispursuanttoorcontemplatedinanapprovedbusinessrescueplanforthatcompany,intermsofChapter 6;and

(b) to the extent that Parts B and C of this Chapter and theTakeover Regulations apply to a company thatproposes to:

(i) disposeofallorthegreaterpartofitsassetsorundertaking;

(ii) amalgamateormergewithanothercompany;or

(iii) implementaschemeofarrangement,theTRPhasissuedacompliancecertificateinrespectofthetransaction,intermsofsection119(4)(b),orexemptedthetransactionintermsofsection119(6).

(2) Aproposedtransactioncontemplatedinsubsection(1)mustbeapproved:

(a) byaspecialresolutionadoptedbypersonsentitledtoexercisevotingrightsonsuchamatter,atameetingcalledforthatpurposeandatwhichsufficientpersonsarepresenttoexercise,inaggregate,atleast25%ofallofthevotingrightsthatareentitledtobeexercisedonthatmatter,oranyhigherpercentageasmayberequiredbythecompany’sMemorandumofIncorporation,ascontemplatedinsection64(2);

(b) by a special resolution, also adopted in the manner required by paragraph (a), by the shareholders of thecompany’sholdingcompanyifany,if:

(i) theholdingcompanyisacompanyoranexternalcompany;

(ii) theproposedtransactionconcernsadisposalofallorthegreaterpartoftheassetsorundertakingofthesubsidiary;and

(iii) havingregardtotheconsolidatedfinancialstatementsoftheholdingcompany,thedisposalbythesubsidiaryconstitutesadisposalofallorthegreaterpartoftheassetsorundertakingoftheholdingcompany;and

(c) bythecourt,totheextentrequiredinthecircumstancesandmannercontemplatedinsubsections(3)to(6).

(3) Despitearesolutionhavingbeenadoptedascontemplatedinsubsections(2)(a)and(b),acompanymaynotproceedtoimplementthatresolutionwithouttheapprovalofacourtif:

(a) theresolutionwasopposedbyat least15%of thevotingrights thatwereexercisedonthatresolutionand,withinfivebusinessdaysafterthevote,anypersonwhovotedagainsttheresolutionrequiresthecompanytoseekcourtapproval;or

(b) thecourt,onanapplicationwithin10businessdaysafterthevotebyanypersonwhovotedagainsttheresolution,grants that person leave, in terms of subsection (6), to apply to a court for a reviewof the transaction inaccordancewithsubsection(7).

(4) Forthepurposesofsubsections(2)and(3),anyvotingrightscontrolledbyanacquiringparty,apersonrelatedtoanacquiringparty,orapersonactinginconcertwitheitherofthem,mustnotbeincludedincalculatingthepercentageofvotingrights:

(a) required tobepresent,oractuallypresent, indeterminingwhether theapplicablequorumrequirementsaresatisfied;or

(b) requiredtobevotedinsupportofaresolution,oractuallyvotedinsupportoftheresolution.

71

(4A)Insubsection(4),‘actinconcert’hasthemeaningsetoutinsection117(1)(b).

(5) Ifaresolutionrequiresapprovalbyacourtascontemplatedintermsofsubsection(3)(a),thecompanymusteither :

(a) within10businessdaysafterthevote,applytothecourtforapproval,andbearthecostsofthatapplication;or

(b) treattheresolutionasanullity.

(6) Onanapplicationcontemplatedinsubsection(3)(b),thecourtmaygrantleaveonlyifitissatisfiedthattheapplicant:

(a) isactingingoodfaith;

(b) appearspreparedandabletosustaintheproceedings;and

(c) hasallegedfactswhich,ifproved,wouldsupportanorderintermsofsubsection(7).

(7) Onreviewingaresolutionthatisthesubjectofanapplicationintermsofsubsection(5)(a),oraftergrantingleaveintermsofsubsection(6),thecourtmaysetasidetheresolutiononlyif:

(a) theresolutionismanifestlyunfairtoanyclassofholdersofthecompany’ssecurities;or

(b) the votewasmaterially taintedby conflict of interest, inadequate disclosure, failure to complywith theAct,theMemorandumof Incorporationoranyapplicable rulesof thecompany,orother significantandmaterialproceduralirregularity.

(8) Theholderofanyvotingrightsinacompanyisentitledtoseekreliefintermsofsection164ifthatperson:

(a) notifiedthecompanyinadvanceoftheintentiontoopposeaspecialresolutioncontemplatedinthissection;and

(b) waspresentatthemeetingandvotedagainstthatspecialresolution.

(9) IfatransactioncontemplatedinthisParthasbeenapproved,anypersontowhomassetsare,oranundertakingis,tobetransferred,mayapplytoacourtforanordertoeffect:

(a) thetransferofthewholeoranypartoftheundertaking,assetsandliabilitiesofacompanycontemplatedinthattransaction;

(b) theallotmentandappropriationofanysharesorsimilarintereststobeallottedorappropriatedasaconsequenceofthetransaction;

(c) thetransferofsharesfromonepersontoanother;

(d) thedissolution,withoutwinding-up,ofacompany,ascontemplatedinthetransaction;

(e) incidental,consequentialandsupplementalmattersthatarenecessaryfortheeffectivenessandcompletionofthetransaction;or

(f) anyotherreliefthatmaybenecessaryorappropriatetogiveeffectto,andproperlyimplement,theamalgamationormerger.

72

ANNEXurE 8

SECTiON 164 – diSSENTiNg ShArEhOLdErS’ ApprAiSAL righTS

(1) Thissectiondoesnotapplyinanycircumstancesrelatingtoatransaction,agreementorofferpursuanttoabusinessrescueplanthatwasapprovedbyshareholdersofacompany,intermsofsection152.

(2) Ifacompanyhasgivennoticetoshareholdersofameetingtoconsideradoptingaresolutionto:

(a) amenditsMemorandumofIncorporationbyalteringthepreferences,rights,limitationsorothertermsofanyclassofitssharesinanymannermateriallyadversetotherightsorinterestsofholdersofthatclassofshares,ascontemplatedinsection37(8);or

(b) enterintoatransactioncontemplatedinsections112,113,or114,

thatnoticemustincludeastatementinformingshareholdersoftheirrightsunderthissection.

(3) Atanytimebeforearesolutionreferredtoinsubsection(2)istobevotedon,adissentingshareholdermaygivethecompanyawrittennoticeobjectingtotheresolution.

(4) Within10businessdaysafteracompanyhasadoptedaresolutioncontemplatedinthissection,thecompanymustsendanoticethattheresolutionhasbeenadoptedtoeachshareholderwho:

(a) gavethecompanyawrittennoticeofobjectionintermsofsubsection(3);and

(b) hasneither :

(i) withdrawnthatnotice;or

(ii) votedinsupportoftheresolution.

(5) Ashareholdermaydemandthatthecompanypaytheshareholderthefairvalueforallofthesharesofthecompanyheldbythatpersonif:

(a) theshareholder:

(i) sentthecompanyanoticeofobjection,subjecttosubsection(6);and(ii) inthecaseofanamendmenttothecompany’sMemorandumofIncorporation,holdssharesofaclassthat ismateriallyandadverselyaffectedbytheamendment;

(ii) thecompanyhasadoptedtheresolutioncontemplatedinsubsection(2);and

(b) theshareholder:

(i) votedagainstthatresolution;and

(ii) hascompliedwithalloftheproceduralrequirementsofthissection.

(6) Therequirementofsubsection(5)(a)(i)doesnotapplyifthecompanyfailedtogivenoticeofthemeeting,orfailedtoincludeinthatnoticeastatementoftheshareholdersrightsunderthissection.

(7) Ashareholderwhosatisfiestherequirementsofsubsection(5)maymakeademandcontemplatedinthatsubsectionbydeliveringawrittennoticetothecompanywithin:

(a) 20businessdaysafterreceivinganoticeundersubsection(4);or

(b) iftheshareholderdoesnotreceiveanoticeundersubsection(4),within20businessdaysafterlearningthattheresolutionhasbeenadopted.

(8) Ademanddeliveredintermsofsubsections(5)to(7)mustalsobedeliveredtotheTRP,andmuststate:

(a) theshareholder’snameandaddress;

(b) thenumberandclassofsharesinrespectofwhichtheshareholderseekspayment;and

(c) ademandforpaymentofthefairvalueofthoseshares.

(9) Ashareholderwhohassentademandintermsofsubsections(5)to(8)hasnofurtherrightsinrespectofthoseshares,otherthantobepaidtheirfairvalue,unless:

73

(a) theshareholderwithdrawsthatdemandbeforethecompanymakesanofferundersubsection(11),orallowsanoffermadebythecompanytolapse,ascontemplatedinsubsection(12)(b);

(b) the company fails tomake anoffer in accordancewith subsection (11) and the shareholderwithdraws thedemand;or

(c) thecompany,byasubsequentspecialresolution,revokestheadoptedresolutionthatgaverisetotheshareholder’srightsunderthissection.

(10)Ifanyoftheeventscontemplatedinsubsection(9)occur,alloftheshareholder’srightsinrespectofthesharesarereinstatedwithoutinterruption.

(11)Withinfivebusinessdaysafterthelaterof:

(a) thedayonwhichtheactionapprovedbytheresolutioniseffective;

(b) thelastdayforthereceiptofdemandsintermsofsubsection(7)(a);or

(c) thedaythecompanyreceivedademandascontemplatedinsubsection(7)(b),ifapplicable,thecompanymustsendtoeachshareholderwhohassentsuchademandawrittenoffertopayanamountconsideredbythecompany’sdirectorstobethefairvalueoftherelevantshares,subjecttosubsection(16),accompaniedbyastatementshowinghowthatvaluewasdetermined.

(12)Everyoffermadeundersubsection(11):

(a) inrespectofsharesofthesameclassorseriesmustbeonthesameterms;and

(b) lapsesifithasnotbeenacceptedwithin30businessdaysafteritwasmade.

(13)Ifashareholderacceptsanoffermadeundersubsection(12):

(a) theshareholdermusteitherinthecaseof:

(i) sharesevidencedbycertificates,tendertherelevantsharecertificatestothecompanyorthecompany’stransferagent;or

(ii) uncertificatedshares,takethestepsrequiredintermsofsection53todirectthetransferofthosesharestothecompanyorthecompany’stransferagent;and

(b) the company must pay that shareholder the agreed amount within 10 business days after the shareholderacceptedtheofferand:

(i) tenderedthesharecertificates;or

(ii) directedthetransfertothecompanyofuncertificatedshares.

(14)Ashareholderwhohasmadeademandintermsofsubsections(5)to(8)mayapplytoacourttodetermineafairvalueinrespectofthesharesthatwerethesubjectofthatdemand,andanorderrequiringthecompanytopaytheshareholderthefairvaluesodetermined,ifthecompanyhas:

(a) failedtomakeanofferundersubsection(11);or

(b) madeanofferthattheshareholderconsiderstobeinadequate,andthatofferhasnotlapsed.

(15)Onanapplicationtothecourtundersubsection(14):

(a) alldissentingshareholderswhohavenotacceptedanofferfromthecompanyasatthedateoftheapplicationmustbejoinedaspartiesandareboundbythedecisionofthecourt;

(b) the company must notify each affected dissenting shareholder of the date, place and consequences of theapplicationandoftheirrighttoparticipateinthecourtproceedings;and

(c) thecourt:

(i) maydeterminewhetheranyotherpersonisadissentingshareholderwhoshouldbejoinedasaparty;

(ii) mustdetermineafairvalueinrespectofthesharesofalldissentingshareholders,subjecttosubsection(16);

(iii) initsdiscretionmay:

(aa) appointoneormoreappraiserstoassistitindeterminingthefairvalueinrespectoftheshares;or

(bb) allowareasonablerateofinterestontheamountpayabletoeachdissentingshareholderfromthedatetheactionapprovedbytheresolutioniseffective,untilthedateofpayment;

74

(iv) maymakeanappropriateorderofcosts,havingregardtoanyoffermadebythecompany,andthefinaldeterminationofthefairvaluebythecourt;and

(v) mustmakeanorderrequiring:

(aa) the dissenting shareholders to either withdraw their respective demands, or to comply withsubsection(13)(a);and

(bb) thecompanytopaythe fairvalue inrespectof theirshares toeachdissentingshareholderwhocomplieswithsubsection(13)(a),subjecttoanyconditionsthecourtconsidersnecessarytoensurethatthecompanyfulfilsitsobligationsunderthissection.

(15A) Atanytimebeforethecourthasmadeanordercontemplatedinsubsection(15)(c)(v),adissentingshareholdermayaccepttheoffermadebythecompanyintermsofsubsection(11),inwhichcase:

(a) thatshareholdermustcomplywiththerequirementsofsubsection13(a);and

(b) thecompanymustcomplywiththerequirementsofsubsection13(b);

(16) Thefairvalueinrespectofanysharesmustbedeterminedasatthedateonwhich,andtimeimmediatelybefore,thecompanyadoptedtheresolutionthatgaverisetoashareholder’srightsunderthissection.

(17) Iftherearereasonablegroundstobelievethatcompliancebyacompanywithsubsection(13)(b),orwithacourtorderintermsofsubsection(15)(c)(v)(bb),wouldresultinthecompanybeingunabletopaysitsdebtsastheyfalldueandpayablefortheensuing12months:

(a) thecompanymayapplytoacourtforanordervaryingthecompany’sobligationsintermsoftherelevantsubsection;and

(b) thecourtmaymakeanorderthat:

(i) isjustandequitable,havingregardtothefinancialcircumstancesofthecompany;and

(ii) ensuresthatthepersontowhomthecompanyowesmoneyintermsofthissectionispaidattheearliestpossibledatecompatiblewiththecompanysatisfyingitsotherfinancialobligationsastheyfalldueandpayable.

(18) Iftheresolutionthatgaverisetoashareholder’srightsunderthissectionauthorisedthecompanytoamalgamateormergewithoneormoreothercompanies,suchthatthecompanywhosesharesarethesubjectofademandintermsofthissectionhasceasedtoexist,theobligationsofthatcompanyunderthissectionareobligationsofthesuccessortothatcompanyresultingfromtheamalgamationormerger.

(19) Forgreatercertainty,themakingofademand,tenderingofsharesandpaymentbyacompanytoashareholderintermsofthissectiondonotconstituteadistributionbythecompany,oranacquisitionofitssharesbythecompanywithinthemeaningofsection48,andthereforearenotsubjectto:

(a) theprovisionsofthatsection;or

(b) theapplicationbythecompanyofthesolvencyandliquiditytestsetoutinsection4.

(20) Excepttotheextent:

(a) expresslyprovidedinthissection;or

(b) thattheTRPrulesotherwiseinaparticularcase,

apaymentbyacompanytoashareholderintermsofthissectiondoesnotobligateanypersontomakeacomparableofferundersection125toanyotherperson.

75

ANNEXurE 9

TrAdiNg hiSTOry OF ALTECh OrdiNAry ShArES

SetoutbelowisatableshowingtheaggregatevolumesandvaluestradedandthehighestandlowestpricestradedinAltechSharesfor:

• eachmonthoverthe12monthsprecedingtheLastPracticableDatepriortothedateofissueofthisCircular ;

• eachquarteroverthetwoyearspriortothesaid12-monthperiod;and

• eachdayoverthe30daysprecedingtheLastPracticableDateandpriortothedateofissueofthisCircular.

periodhigh

(cents)Low

(cents)Close (cents)

volume valuet traded (r)

quarterly

March2012 5540 5149 5350 3813713 201346300December2011 5900 5150 5350 3628722 193832700September2011 6195 5600 5890 5590409 332538300June2011 6562 5401 5825 7437941 420546600March2011 6850 5575 5700 5335990 325882200December2010 6800 5695 6575 6682866 413457800September2010 6425 5650 5699 4586697 276177600June2010 7680 6025 6150 5363573 362662200March2010 7977 7251 7319 3263915 247257900

monthly

May2013 4548 3120 4525 11477365 501671100April2013 3798 3001 3201 1595122 54327280March2013 4299 3325 3700 5794585 211937500February2013 4300 3409 3636 2109723 77090930January2013 4400 3721 4070 1948431 78482640December2012 4050 3595 3880 1176388 44132150November2012 4163 3601 3675 1810153 69404460October2012 4670 3995 4000 1631734 69023290September2012 4500 3851 4350 3325951 135947200August2012 4850 4111 4175 1171289 53851090July2012 4850 4452 4750 1334122 62381380June2012 5195 4700 4849 3119988 153010900May2012 5469 4766 4806 2364703 119967700

daily

21June2013 4535 4500 4515 274701 1240534020June2013 4541 4519 4520 155118 701236919June2013 4620 4471 4541 8604 39066018June2013 4575 4501 4575 24431 111241714June2013 4501 4460 4501 70619 317756013June2013 4530 4500 4530 344928 1557009012June2013 4530 4500 4530 74627 337391311June2013 4550 4500 4505 411154 1850783010June2013 4595 4450 4500 106240 478880007June2013 4620 4511 4530 1550 7007106June2013 4624 4520 4624 11010 49983405June2013 4594 4525 4582 19025 86805304June2013 4550 4520 4525 16902 76618003June2013 4525 4515 4525 92465 418395431May2013 4548 4520 4525 107333 4857668

76

periodhigh

(cents)Low

(cents)Close (cents)

volume valuet traded (r)

30May2013 4525 4490 4520 362039 1629915029May2013 4500 4480 4490 125056 560758428May2013 4500 4485 4495 113780 510908827May2013 4500 4490 4500 1912782 8607250024May2013 4510 4490 4500 2600207 11699410023May2013 4520 4460 4510 48748 219127222May2013 4543 4455 4518 474137 2132970021May2013 4500 4450 4495 46962 210143620May2013 4500 4455 4455 3640237 16307270017May2013 4501 3246 4460 905440 3932545016May2013 3439 3169 3439 30437 97705515May2013 3387 3160 3201 136703 438852214May2013 3382 3201 3280 18989 62038813May2013 3422 3191 3422 20216 66067510May2013 3431 3311 3325 120082 3993065

Source:Bloomberg.

77

ANNEXurE 10

TrAdiNg hiSTOry OF ALTrON pArTiCipATiNg prEFErENCE ShArES

SetoutbelowisatableshowingtheaggregatevolumesandvaluestradedandthehighestandlowestpricestradedinAltronParticipatingPreferenceSharesfor:

• eachmonthoverthe12monthsprecedingtheLastPracticableDatepriortothedateofissueofthisCircular ;

• eachquarteroverthetwoyearspriortothesaid12-monthperiod;and

• eachdayoverthe30daysprecedingtheLastPracticableDateandpriortothedateofissueofthisCircular.

periodhigh

(cents)Low

(cents)Close

(cents)volume value traded

(rand)

quarterly

March2012 2425 2169 2400 19295661 439970300December2011 2453 2125 2258 13364982 302106100September2011 2666 2230 2350 7649727 189849400June2011 2750 2502 2625 15748510 409170100March2011 2788 2280 2538 15505683 402845800December2010 3001 2450 2665 17196223 462691000September2010 2600 2265 2600 19481508 469793800June2010 2803 2270 2325 16802868 431609900March2010 2850 2350 2700 31185042 813943700

monthlyMay2013 2150 1850 1950 8368547 165846600April2013 2149 1805 1906 3519805 68965100March2013 2200 2024 2080 4771158 101307300February2013 2333 2074 2110 9421113 202604600January2013 2324 2070 2200 9884257 211884800December2012 2300 2048 2095 3826884 80882230November2012 2250 2080 2112 5612261 120024400October2012 2249 2100 2147 6963253 148617800September2012 2299 2110 2200 4796911 103684200August2012 2295 2089 2185 5047305 112208600July2012 2311 2175 2281 4573428 104185700June2012 2510 2210 2250 6226999 149372800May2012 2500 2242 2305 6860384 166268300

daily21June2013 1950 1916 1935 468646 907431720June2013 1972 1940 1945 391983 764882419June2013 1995 1950 1975 172316 342315418June2013 1988 1950 1950 79127 155216514June2013 1968 1940 1961 61493 119818813June2013 1951 1931 1950 411990 802905612June2013 1997 1941 1955 2123452 4147205011June2013 1961 1940 1943 520084 1013619010June2013 1961 1940 1950 458129 893416607June2013 1988 1933 1960 328475 641137006June2013 1987 1956 1960 127771 252101905June2013 1991 1949 1950 570138 1119927004June2013 1985 1953 1960 79568 156190303June2013 1999 1950 1960 38406 75684331May2013 2000 1950 1950 172846 3417880

78

periodhigh

(cents)Low

(cents)Close

(cents)volume value traded

(rand)

30May2013 2000 1950 2000 90821 179295829May2013 1965 1950 1965 589012 1153220028May2013 1982 1959 1980 186066 368005027May2013 1990 1960 1984 1163010 2302483024May2013 1970 1950 1970 14650 28642723May2013 1980 1940 1940 691414 1354291022May2013 2035 1980 2000 305909 611728721May2013 1985 1956 1980 199827 395656020May2013 2031 1999 1999 1513193 3044624017May2013 2065 1942 2020 616644 1225337016May2013 1980 1957 1980 1155044 2286827015May2013 2014 1955 1982 196299 391613514May2013 1995 1964 1995 196415 391489813May2013 1986 1955 1968 195880 386693510May2013 2000 1955 1955 48024 950766

Source:Bloomberg.

79

ANNEXurE 11

dEALiNgS iN ALTECh ShArES By prOvidErS OF irrEvOCABLE uNdErTAKiNgS

Dealings inAltechShares for theperiodbeginning sixmonthsbefore theLastPracticableDatebypartieswhohaveprovidedirrevocableundertakingsareasfollows:

datepurchase/

Salevolume bought

volume sold

purchase price

(cents)Selling price

(cents)

iNvESTEC ASSET mANAgEmENT

10June2013 Sell 19251 4500

30May2013 Sell 2118 4502

30May2013 Sell 528 4502

30May2013 Sell 907 4502

30May2013 Sell 5655 4502

30May2013 Sell 2206 4502

30May2013 Sell 7905 4502

30May2013 Sell 1196 4502

30May2013 Sell 102772 4502

30May2013 Sell 21434 4502

30May2013 Sell 3945 4502

30May2013 Sell 55621 4502

30May2013 Sell 4357 4502

30May2013 Sell 1990 4502

30May2013 Sell 4074 4502

30May2013 Sell 120 4502

30May2013 Sell 2364 4502

30May2013 Sell 11623 4502

30May2013 Sell 1669 4502

30May2013 Sell 4944 4502

30May2013 Sell 2634 4502

30May2013 Sell 5900 4502

30May2013 Sell 3007 4502

30May2013 Sell 1407 4502

30May2013 Sell 4897 4502

30May2013 Sell 4759 4502

30May2013 Sell 417 4502

30May2013 Sell 11002 4502

30May2013 Sell 1529 4502

80

datepurchase/

Salevolume bought

volume sold

purchase price

(cents)Selling price

(cents)

30May2013 Sell 641 4502

30May2013 Sell 751 4502

30May2013 Sell 2241 4502

30May2013 Sell 1148 4502

29May2013 Sell 5308 4490

27May2013 Sell 11409 4500

27May2013 Sell 2849 4500

27May2013 Sell 4886 4500

27May2013 Sell 30456 4500

27May2013 Sell 11882 4500

27May2013 Sell 42580 4500

27May2013 Sell 6443 4500

27May2013 Sell 553603 4500

27May2013 Sell 115459 4500

27May2013 Sell 21251 4500

27May2013 Sell 299613 4500

27May2013 Sell 23465 4500

27May2013 Sell 10722 4500

27May2013 Sell 21947 4500

27May2013 Sell 652 4500

27May2013 Sell 12735 4500

27May2013 Sell 62606 4500

27May2013 Sell 8994 4500

27May2013 Sell 26630 4500

27May2013 Sell 14191 4500

27May2013 Sell 31781 4500

27May2013 Sell 16197 4500

27May2013 Sell 7583 4500

27May2013 Sell 26378 4500

27May2013 Sell 25634 4500

27May2013 Sell 2250 4500

27May2013 Sell 59259 4500

27May2013 Sell 8240 4500

27May2013 Sell 3457 4500

27May2013 Sell 4046 4500

27May2013 Sell 12074 4500

81

datepurchase/

Salevolume bought

volume sold

purchase price

(cents)Selling price

(cents)

27May2013 Sell 6188 4500

24May2013 Sell 11988 4500

24May2013 Sell 6603 4500

24May2013 Sell 1649 4500

24May2013 Sell 2829 4500

24May2013 Sell 17627 4500

24May2013 Sell 6878 4500

24May2013 Sell 24644 4500

24May2013 Sell 3730 4500

24May2013 Sell 320413 4500

24May2013 Sell 66825 4500

24May2013 Sell 12300 4500

24May2013 Sell 173409 4500

24May2013 Sell 13582 4500

24May2013 Sell 6205 4500

24May2013 Sell 12702 4500

24May2013 Sell 377 4500

24May2013 Sell 7371 4500

24May2013 Sell 36234 4500

24May2013 Sell 5206 4500

24May2013 Sell 15413 4500

24May2013 Sell 8213 4500

24May2013 Sell 18393 4500

24May2013 Sell 9374 4500

24May2013 Sell 4389 4500

24May2013 Sell 15267 4500

24May2013 Sell 14836 4500

24May2013 Sell 1303 4500

24May2013 Sell 34297 4500

24May2013 Sell 4769 4500

24May2013 Sell 2001 4500

24May2013 Sell 2343 4500

24May2013 Sell 6988 4500

24May2013 Sell 3581 4500

22May2013 Sell 105820 4500

20May2013 Sell 1496 4480

82

datepurchase/

Salevolume bought

volume sold

purchase price

(cents)Selling price

(cents)

20May2013 Sell 2431 4480

20May2013 Sell 19427 4480

20May2013 Sell 114158 4480

20May2013 Sell 2270 4480

20May2013 Sell 20898 4480

20May2013 Sell 60670 4480

20May2013 Sell 23735 4480

20May2013 Sell 13785 4480

20May2013 Sell 10095 4480

20May2013 Sell 5497 4480

20May2013 Sell 6343 4480

20May2013 Sell 1164 4480

20May2013 Sell 1648 4480

20May2013 Sell 14768 4480

20May2013 Sell 24605 4480

20May2013 Sell 43209 4480

20May2013 Sell 172950 4480

20May2013 Sell 35873 4480

20May2013 Sell 7313 4480

20May2013 Sell 291680 4480

20May2013 Sell 34636 4480

20May2013 Sell 5616 4480

20May2013 Sell 107999 4480

20May2013 Sell 88823 4480

20May2013 Sell 25949 4480

20May2013 Sell 38173 4480

20May2013 Sell 44758 4480

20May2013 Sell 117077 4480

20May2013 Sell 3562 4480

20May2013 Sell 12179 4480

20May2013 Sell 8285 4480

20May2013 Sell 53789 4480

20May2013 Sell 58049 4480

20May2013 Sell 10352 4480

20May2013 Sell 37551 4480

20May2013 Sell 43369 4480

83

datepurchase/

Salevolume bought

volume sold

purchase price

(cents)Selling price

(cents)

20May2013 Sell 109017 4480

20May2013 Sell 690 4480

20May2013 Sell 1502 4480

20May2013 Sell 9043 4480

20May2013 Sell 6622 4480

20May2013 Sell 54320 4480

20May2013 Sell 18685 4480

20May2013 Sell 12653 4480

20May2013 Sell 14857 4480

20May2013 Sell 10486 4480

20May2013 Sell 46684 4480

20May2013 Sell 7518 4480

20May2013 Sell 9774 4480

20May2013 Sell 5333 4480

20May2013 Sell 18218 4480

20May2013 Sell 20369 4480

20May2013 Sell 15090 4480

20May2013 Sell 45328 4480

20May2013 Sell 6391 4480

20May2013 Sell 8406 4480

20May2013 Sell 15266 4480

20May2013 Sell 130590 4480

20May2013 Sell 57271 4480

20May2013 Sell 55930 4480

20May2013 Sell 37345 4480

20May2013 Sell 16400 4480

20May2013 Sell 7719 4480

20May2013 Sell 13584 4480

20May2013 Sell 6025 4480

20May2013 Sell 6318 4480

20May2013 Sell 11398 4480

20May2013 Sell 6585 4480

04April2013 Buy 1800 3600

04April2013 Sell 600 3600

04April2013 Sell 1200 3600

26March2013 Buy 534 3881

84

datepurchase/

Salevolume bought

volume sold

purchase price

(cents)Selling price

(cents)

26March2013 Buy 351 3881

26March2013 Buy 82 3881

26March2013 Buy 189 3881

26March2013 Buy 804 3881

26March2013 Buy 312 3881

26March2013 Buy 1013 3881

26March2013 Buy 116 3881

26March2013 Buy 12862 3881

26March2013 Buy 311 3881

26March2013 Buy 7841 3881

26March2013 Buy 1061 3881

26March2013 Buy 227 3881

26March2013 Buy 620 3881

26March2013 Buy 12 3881

26March2013 Buy 335 3881

26March2013 Buy 57 3881

26March2013 Buy 708 3881

26March2013 Buy 1092 3881

26March2013 Buy 376 3881

26March2013 Buy 122 3881

26March2013 Buy 265 3881

26March2013 Buy 659 3881

26March2013 Buy 58 3881

26March2013 Buy 1068 3881

26March2013 Buy 211 3881

26March2013 Buy 91 3881

26March2013 Buy 141 3881

26March2013 Buy 122 3881

26March2013 Buy 134 3881

26March2013 Sell 21315 3881

26March2013 Sell 10459 3881

15March2013 Buy 14600 3670

15March2013 Sell 300 3641

13March2013 Sell 5386 4143

12March2013 Sell 344 4248

21February2013 Sell 200 3570

85

datepurchase/

Salevolume bought

volume sold

purchase price

(cents)Selling price

(cents)

15February2013 Sell 300 3543

11February2013 Sell 97824 3600

23January2013 Buy 1300 3998

23January2013 Sell 600 3998

23January2013 Sell 700 3998

17January2013 Buy 1200 3960

17January2013 Sell 1200 3960

10January2013 Sell 200 4000

COrONATiON ASSET mANAgEmENT

06June2013 Buy 4000 4550

06June2013 Sell 4000 4550

05June2013 Buy 600 4573

05June2013 Sell 1400 4551

31May2013 Buy 9800 4545

30May2013 Buy 2000 4501

30May2013 Sell 2000 0 4501

29May2013 Buy 10900 4489 0

29May2013 Sell 10900 4489

23May2013 Buy 8400 4510

21May2013 Buy 2400 4483

21May2013 Sell 2400 4483

20May2013 Buy 2807473 4480

17May2013 Buy 2900 3285

17May2013 Sell 2901 3285

13May2013 Buy 4200 3320

13May2013 Sell 4200 3320

09May2013 Buy 3400 3400

09May2013 Sell 3400 3400

08May2013 Buy 1200 3331

08May2013 Sell 1200 3331

03May2013 Sell 60600 3155

03May2013 Sell 700 3160

02May2013 Buy 700 3160

29April2013 Buy 11200 3133

29April2013 Sell 11200 3133

24April2013 Buy 37400 3730

86

datepurchase/

Salevolume bought

volume sold

purchase price

(cents)Selling price

(cents)

24April2013 Sell 37400 3730

02April2013 Buy 600 3694

02April2013 Sell 600 3694

22March2013 Sell 251364 3762

20March2013 Buy 18630 3550

20March2013 Sell 10864 3615

19March2013 Buy 16724 3550

18March2013 Buy 103797 3539

18March2013 Sell 2600 3525

15March2013 Buy 921998 3648

15March2013 Sell 1700 3648

14March2013 Buy 6100 3970

14March2013 Sell 6100 3970

12March2013 Buy 1000 4205

12March2013 Sell 1000 4205

05March2013 Buy 6500 3749

05March2013 Sell 6500 3749

21February2013 Buy 1712 3570

21February2013 Sell 1200 3570

20February2013 Buy 14958 3555

19February2013 Buy 4811 3557

18February2013 Buy 16205 3560

18February2013 Sell 2500 3560

15February2013 Buy 705 3557

14February2013 Buy 228497 3562

13February2013 Buy 476302 3539

31January2013 Buy 10500 4240

18January2013 Buy 2200 3965

18January2013 Sell 2200 3965

04January2013 Sell 400 3850

SANLAm iNvESTmENT mANAgEmENT

12June2013 Sell 133 4522

12June2013 Sell 46196 4522

12June2013 Sell 960 4522

12June2013 Sell 2994 4522

12June2013 Sell 3045 4522

87

datepurchase/

Salevolume bought

volume sold

purchase price

(cents)Selling price

(cents)

12June2013 Sell 92 4522

12June2013 Sell 183 4522

12June2013 Sell 1432 4522

12June2013 Sell 90 4522

12June2013 Sell 383 4522

11June2013 Sell 4280 3875

11June2013 Sell 243032 3875

11June2013 Sell 15225 4014

11June2013 Sell 51875 4013

10June2013 Buy 250 4572

10June2013 Sell 240 3857

10June2013 Sell 14975 4014

10June2013 Sell 51025 4013

05June2013 Buy 10000 4587

05June2013 Sell 140 3863

31May2013 Buy 494 4541

30May2013 Buy 80 4560

30May2013 Sell 1610 3880

28May2013 Buy 50 4500

28May2013 Sell 50 3825

28May2013 Sell 600 3825

24May2013 Buy 260 4531

20May2013 Sell 560 3875

15May2013 Sell 22991 3422

14May2013 Buy 33100 3422

14May2013 Sell 33100 3875

14May2013 Sell 10109 3422

13May2013 Buy 420 3330

08May2013 Buy 55448 3316

07May2013 Buy 410 3366

07May2013 Buy 48302 3401

03May2013 Sell 9000 3201

02May2013 Buy 9000 3201

02May2013 Buy 1020 3189

02May2013 Sell 9000 3875

23April2013 Sell 8100 3650

88

datepurchase/

Salevolume bought

volume sold

purchase price

(cents)Selling price

(cents)

22April2013 Buy 8100 3650

22April2013 Sell 8100 3875

18April2013 Sell 400 3879

15April2013 Buy 820 3620

09April2013 Sell 130 3874

08April2013 Sell 60 3874

18March2013 Sell 17530 3871

15March2013 Buy 54588 3561

15March2013 Buy 1051153 3561

15March2013 Buy 104214 3561

15March2013 Sell 1937100 5241

15March2013 Sell 41581 4431

15March2013 Sell 557160 4583

13March2013 Buy 86 4031

13March2013 Buy 1655 4020

13March2013 Buy 18449 4075

13March2013 Sell 4495 4583

08March2013 Buy 606 4087

08March2013 Buy 11671 4087

08March2013 Buy 14806 4090

08March2013 Buy 841 4088

07March2013 Buy 1859 4007

07March2013 Buy 35841 4007

07March2013 Buy 11039 4007

07March2013 Sell 10183 4596

06March2013 Buy 1252 3956

06March2013 Buy 24120 3956

06March2013 Buy 51140 4015

06March2013 Buy 8116 3956

05March2013 Buy 578 3773

05March2013 Buy 11136 3772

05March2013 Buy 5704 3714

05March2013 Buy 949 3774

01March2013 Buy 1410 3659

28February2013 Buy 181 3643

28February2013 Buy 3484 3639

89

datepurchase/

Salevolume bought

volume sold

purchase price

(cents)Selling price

(cents)

28February2013 Buy 3666 3639

28February2013 Sell 842 3734

27February2013 Buy 370 3624

27February2013 Buy 3372 3618

26February2013 Buy 4894 3617

22February2013 Buy 10 3600

22February2013 Buy 20 3600

22February2013 Buy 7483 3614

22February2013 Sell 10 4808

22February2013 Sell 20 4808

21February2013 Buy 33527 3594

21February2013 Buy 3035 3616

20February2013 Buy 1550 3588

18February2013 Buy 1962 3601

11February2013 Buy 2476 3614

04February2013 Buy 5349 4120

04February2013 Buy 4102 4211

04February2013 Buy 17992 4120

01February2013 Buy 550 4031

01February2013 Buy 7336 4073

01February2013 Buy 24684 4073

31January2013 Sell 9946 4686

30January2013 Buy 4291 4119

30January2013 Buy 14442 4119

29January2013 Buy 3276 4040

29January2013 Buy 11025 4039

29January2013 Buy 2143 4035

25January2013 Buy 718 4021

25January2013 Buy 2417 4020

24January2013 Buy 18752 4019

24January2013 Buy 63101 4019

24January2013 Buy 2050 4029

23January2013 Buy 12898 4018

23January2013 Buy 43405 4018

22January2013 Buy 21979 4014

22January2013 Buy 73962 4014

90

datepurchase/

Salevolume bought

volume sold

purchase price

(cents)Selling price

(cents)

21January2013 Buy 1422 3995

21January2013 Buy 4787 3994

21January2013 Buy 2375 4053

18January2013 Buy 6690 3985

18January2013 Buy 22514 3985

17January2013 Buy 1541 3958

17January2013 Buy 5190 3957

15January2013 Buy 671 4021

15January2013 Buy 2262 4020

14January2013 Buy 2464 4054

11January2013 Buy 4200 4019

11January2013 Buy 14136 4019

10January2013 Buy 6092 4019

10January2013 Buy 20501 4019

08January2013 Buy 103285 3999

08January2013 Buy 347582 3999

07January2013 Sell 1093 4431

03January2013 Sell 3541 4855

02January2013 Sell 3369 4855

91

ALLiEd TEChNOLOgiES LimiTEdIncorporatedintheRepublicofSouthAfrica

(Registrationnumber1946/020415/06)Sharecode:ALT ISIN:ZAE000015251

(“Altech”or“theCompany”)

NOTiCE CONvENiNg ThE SChEmE mEETiNg

Ifyouareinanydoubtastowhatactionyoushouldtakeinrespectofthefollowingresolutions,pleaseconsultyourCSDP,Broker,banker,attorney,accountantorotherprofessionaladviserimmediately.

AlltermsusedinthisnoticeofSchemeMeetingshall,unlessthecontextotherwiserequiresortheyareotherwisedefinedherein,havethemeaningattributedtothemintheCirculartowhichthisnoticeofSchemeMeetingisattached.

A. NOTiCE

NoticeisherebygiventhataSchemeMeetingofAltechShareholders,asattheSchemeVotingRecordDateofFriday,19 July2013,willbeheldat11:00onFriday,26July2013attheregisteredofficeofAltechatWoodmeadNorthOfficePark,54MaxwellDrive,Woodmead,2191,Gautengforthepurposeofconsidering,and,ifdeemedfit,passing,withorwithoutmodification,theresolutionssetouthereafter.

B. WhO mAy ATTENd ANd vOTE?

record date

TheAltechBoarddeterminedthat,intermsofsection62(3)(a),readwithsection59oftheCompaniesAct,theSchemeVotingRecordDate,beingthedateonwhichAltechShareholderswhoareentitledtoattendandvoteattheSchemeMeetingwillbedetermined,willbeFriday,19July2013.Accordingly,thelastdaytotradeAltechSharesinordertoberecordedintheRegistertovoteattheSchemeMeetingwillbeFriday,12July2013.

attending in person or by proxy

IfyouholdDematerialisedAltechShareswhichareregisteredinyourown-nameorifyouaretheregisteredholderofCertificatedAltechShares:

• youmayattendtheSchemeMeetinginperson;or

• alternatively,youmayappointaproxytorepresentyouattheSchemeMeetingbycompletingtheattachedformofproxy(yellow)inaccordancewiththeinstructionscontainedthereinandreturningittotheTransferSecretariestobereceivednotlaterthan11:00onThursday,25July2013(or24hoursbeforetheresumptionofanadjournedSchemeMeetingwhichdate,ifnecessary,willbereleasedonSENS),being24hours,excludingSaturdays,SundaysandSouthAfricanpublicholidays,beforethetimeoftheSchemeMeeting.AproxyneednotbeashareholderoftheCompany.TheformofproxymayalsobehandedtothechairmanoftheSchemeMeetingoradjournedSchemeMeetingbeforetheSchemeMeetingisduetocommenceorrecommence.

Theattachedformofproxy(yellow)isonlytobecompletedbythoseAltechShareholderswho:

• holdAltechSharesincertificatedform(“CertificatedAltechShareholders”);or

• are recorded on the Uncertificated Securities Register in“own-name” dematerialised form (“DematerialisedAltechShareholders”with“Own-nameRegistration”).

IfyouholdDematerialisedAltechShareswhicharenotregisteredinyourname:

• andwishtoattendtheSchemeMeeting,youmustobtainthenecessaryLetterofRepresentationfromyourCSDPorBrokertoattendtheSchemeMeetinginpersonorbyproxyandvote;

• anddonotwishtoattendtheSchemeMeetingbutwouldlikeyourvotetoberecordedatthemeeting,youshouldcontactyourCSDPorBrokerandfurnishthemwithyourvotinginstructionsintermsoftherelevantcustodyagreemententeredintobetweenyouandyourCSDPorBroker;and

• youmustnotcompletetheattachedformofproxy(yellow).

92

Electronic participation

Shareholdersortheirproxiesmayparticipatein(butnotvoteat)theSchemeMeetingbywayofateleconferencecalland,iftheywishtodoso:

• mustcontacttheCompanySecretary(byemailattheaddresssecretary@Altech.co.zano laterthan11:00onFriday,19July2013inordertoobtainapinnumberanddial-indetailsforthatconferencecall;

• willberequiredtoprovidereasonablysatisfactoryidentification;and

• willbebilledseparatelybytheirowntelephoneserviceprovidersfortheirtelephonecalltoparticipateintheSchemeMeeting,

providedthatAltechShareholdersandtheirproxieswillnotbeabletovotetelephonicallyattheSchemeMeetingandwillstillneedtoappointaproxytovoteontheirbehalfattheSchemeMeeting.

Identification

Intermsofsection63(1)oftheCompaniesAct,anypersonattendingorparticipatinginameetingofshareholdersmustpresentreasonablysatisfactoryidentificationandthepersonpresidingatthemeetingmustbereasonablysatisfiedthattherightofanypersontoparticipateinandvote(whetherasshareholderorasproxyforashareholder)hasbeenreasonablyverified.Accordingly,allSchemeMeetingparticipantswillberequiredtoprovidereasonablysatisfactoryidentificationtotheChairpersonoftheSchemeMeetinginordertoparticipateinandvoteattheSchemeMeeting.

Voting

Allresolutionsputtothevoteshallbedecidedbywayofapoll.EveryAltechShareholderwhoispresentinperson,byproxyorrepresentedattheSchemeMeetingshallonapollhavethatproportionofthetotalvotesintheCompanywhichtheaggregateamountofthenominalvalueoftheAltechSharesheldbythatAltechShareholderbearstotheaggregateofthenominalvalueofalltheAltechSharesissuedbytheCompany.

C. purpOSE OF ThE SChEmE mEETiNg

ThepurposeoftheSchemeMeetingistoconsiderandifdeemedfit,passwithorwithoutmodificationallresolutionssetoutbelow.

SpECiAL rESOLuTiON:ApprOvAL OF ThE SChEmE iN TErmS OF SECTiONS 114 ANd 115 OF ThE COmpANiES ACT

“resolved thattheScheme(asmorefullydescribedinparagraph5oftheCirculartowhichthisnoticeconveningtheSchemeMeetingisattached),intermsofwhichAlfin,Altron’swhollyownedsubsidiary,will,subjecttothefulfilmentorwaiveroftheConditionsPrecedent(saveforanyconditionprecedentrelatingtothepassingofthisspecialresolution),andontheOperativeDate,acquirealloftheissuedsharesinthecapitalofAltech,otherthanthoseheldbytheAltronGroupandtheExcludedDissentingShareholders,inexchangefortheSchemeConsideration,beandisherebyapprovedasaspecialresolutionintermsofsection115(2)(a)oftheCompaniesAct.”

Thequorumrequirementfortheabovespecialresolutiontobeadopted:sufficientpersonsbeingpresenttoexercise,inaggregate,atleast25%ofallvotingrightsthatareentitledtobeexercisedonsuchspecialresolution.

Thepercentageofvotingrightsrequiredfortheabovespecialresolutiontobeadopted:atleast75%ofthevotingrights(excludingthoseAltechSharesheldbytheAltronGroup)exercisedonsuchspecialresolution.

OrdiNAry rESOLuTiON: AuThOriTy grANTEd TO dirECTOrS

“resolved thatanydirectorofAltechortheCompanySecretarybeandareherebyauthorisedtosignallsuchdocumentsanddoallsuchotherthingsasmaybenecessaryfororincidentaltotheimplementationoftheabovespecialresolution.”

Thepercentageofvotingrightsrequiredfortheaboveordinaryresolutiontobeadopted:atleast50%ofthevotingrightsexercisedonsuchordinaryresolution.

d. ApprAiSAL righTS FOr diSSENTiNg ShArEhOLdErS

Intermsofsection164oftheCompaniesAct,atanytimebeforethespecialresolutionassetoutinthisnoticeconveningtheSchemeMeetingisvotedon,anAltechShareholdermaygivetheCompanyawrittennoticeobjectingtothatspecialresolution.

Within10BusinessDaysaftertheCompanyhasadoptedtheabovespecialresolution,theCompanymustsendanoticetoAltechShareholdersthatthespecialresolutionhasbeenadoptedtoeachAltechShareholderwho:

• gavetheCompanyawrittennoticeofobjectionascontemplatedabove;and

• hasneitherwithdrawnthatnoticenorvotedinsupportofthespecialresolution.

93

AnAltechShareholdermaydemandthattheCompanypaytheAltechShareholderthefairvalueforalloftheAltechSharesoftheCompanyheldbythatpersonif:

• theShareholderhassenttheCompanyawrittennoticeofobjection;

• theCompanyhasadoptedthespecialresolution;and

• the Shareholder voted against the special resolution and has complied with all of the procedural requirements ofsection164oftheCompaniesAct.

Acopyofsection164oftheCompaniesActissetoutAnnexure8totheCirculartowhichthisnoticeconveningtheScheme Meeting is attached. Further detail regarding the process and consequences of a Shareholder exercising itsAppraisalRightsaresetoutinparagraph5.6oftheCircular.

ByorderoftheAltechBoard

Allied Technologies Limited

registered office

WoodmeadNorthOfficePark54MaxwellDriveWoodmead,2191(POBox153,Bergvlei,2012)

27June2013

94 PRINTEDBYINCE(PTY)LTD REF.W2CF16273

ALLiEd TEChNOLOgiES LimiTEdIncorporatedintheRepublicofSouthAfrica

(Registrationnumber1946/020415/06)Sharecode:ALT ISIN:ZAE000015251

(“Altech”or“theCompany”)

FOrm OF prOXy

ForuseonlybyAltechShareholderswho:

• holdordinarysharesincertificatedform(“CertificatedAltechShareholders”);or

• havedematerialisedtheirordinaryshares(“DematerialisedAltechShareholders”)andareregisteredwithOwn-nameRegistration

• atthemeetingofAltechShareholdersoftheCompany(“SchemeMeeting”)tobeheldat11:00onFriday,26July2013attheregisteredofficeofAltechatWoodmeadNorthOfficePark,54MaxwellDrive,Woodmead,2191,Gauteng.

Alltermsusedinthisformofproxyshall,unlessthecontextotherwiserequiresortheyareotherwisedefinedherein,havethemeaningattributedtothemintheCirculartowhichthisformofproxyisattached.

DematerialisedAltechShareholdersholdingAltechShares,otherthanwithOwn-nameRegistration,whowishtoattendtheSchemeMeetingmustinformtheirCentralSecuritiesDepositoryParticipant(“CSDP”)orBrokeroftheirintentiontoattendtheSchemeMeetingandrequesttheirCSDPorBrokertoissuethemwiththerelevantLetterofRepresentationtoattendtheSchemeMeetinginpersonorbyproxyandvote.IftheydonotwishtoattendtheSchemeMeetinginpersonorbyproxy,theymustprovidetheirCSDPorBrokerwiththeirvotinginstructionsintermsoftherelevantcustodyagreemententeredintobetweenthemandtheCSDPorBroker.Such Altech Shareholders must not use this form of proxy.

CompaniesandothercorporatebodieswhoareAltechShareholdershavingAltechSharesregisteredintheirownnamesmay,insteadofcompletingthisformofproxy,appointadulyauthorisedrepresentativetorepresentthemandexercisealloftheirrightsattheSchemeMeetingbygivingwrittennoticeoftheappointmentofthatrepresentative.

EachAltechShareholderisentitledtoappointoneormoreproxies(whoneednotbeanAltechShareholderoftheCompany)toattend,speakandvoteinplaceofthatAltechShareholderattheSchemeMeeting.

please read the notes on the reverse hereof carefully, which, amongst other things, set out the rights of Altech Shareholders in terms of section 58 of the Companies Act with regard to the appointment of proxies.

I/We

(fullname/sinBLOCKLETTERS)

of(address)

beingtheholderof ordinarysharesinthecapitaloftheCompany,doherebyappoint(seenote):

1. orfailinghim/her,

2. orfailinghim/her,

3.theChairpersonoftheSchemeMeeting,

asmy/ourproxytoactforme/usattheSchemeMeetingconvenedforpurposesofconsideringand,ifdeemedfit,passing,withorwithoutmodification,theresolutions(“resolutions”)tobeproposedthereatandateachadjournmentthereofandtovoteforand/oragainsttheresolutions,and/ortoabstainfromvotingforand/oragainsttheresolutions,inrespectoftheSharesregisteredinmy/ournameinaccordancewiththefollowinginstructions:

Number of Shares

For Against Abstain

Special resolutionApprovaloftheSchemeintermsofsections114and115oftheCompaniesAct

Ordinary resolutionAuthoritygrantedtodirectors

Signedat on 2013

Signature

Assistedby(whereapplicable)

Telephonenumber( )

Cellphonenumber

Notes:

1. AnAltechShareholderentitledtoattendandvoteattheSchemeMeetingmayinsertthenameofaproxyorthenamesoftwoalternativeproxiesoftheAltechShareholder’schoiceinthespaceprovided,withorwithoutdeleting“theChairpersonoftheSchemeMeeting”.TheproxyneednotbeanAltechShareholder.Ifmorethanonenameisinserted,thepersonwhosenamestandsfirstontheformofproxyandwhoispresentattheSchemeMeetingwillbeentitledtoactasproxytotheexclusionofsuchproxy(ies)whosenamesfollow.Ifthenameoftheproxyisnotinserted,theChairpersonoftheSchemeMeetingwillbeappointedasproxy.

2. TheproxyappointedinthisformofproxymaydelegatetheauthoritygiventohiminthisformofproxybydeliveringtotheCompany,inthemannerrequiredbytheseinstructions,afurtherformofproxywhichhasbeencompletedinamannerconsistentwiththeauthoritygiventotheproxyinthisformofproxy.

3. Unlessrevokedinthemannercontemplatedinnote10below,theappointmentofproxyintermsofthisformofproxyshallremainvaliduntiltheendoftheSchemeMeeting,eveniftheSchemeMeetingorapartthereofispostponedoradjourned,toadatethatistwomonthsafterthedateonwhenitwassigned.ThisformofproxyshallnotbeusedattheresumptionoftheSchemeMeeting(ifadjourned),ifitcouldnothavebeenusedattheSchemeMeetingfromwhichtheadjournmenttookplaceforanyreasonotherthanthatitwasnotlodgedtimeouslyfortheSchemeMeetingfromwhichtheadjournmenttookplace.

4. Thisformofproxyshall,inadditiontotheauthoritygrantedundertheCompaniesAct,bedeemedtoconferthepowergenerallytoactattheSchemeMeeting,subjecttothespecificdirectionastothemannerofvotinginthisformofproxyoronseparatewritteninstructionswhichaccompanythisformofproxy.Aproxyisthereforeentitledtoexercise,orabstainfromexercising,anyvotingrightoftheShareholderwithoutdirection,excepttotheextentthatthevotinginstructionsareindicatedonformofproxyoronseparatewritteninstructionswhichaccompanythisformofproxy.

5. Altech Shareholders must insert an “X” in the space provided according to how they wish their votes to be cast. However, if an AltechShareholderwishestocastitsvotesinrespectofalessernumberofAltechSharesthanitownsintheCompany,itmustinsertthenumberofAltechSharesheldinrespectofwhichitwishestovote.

6. IfanAltechShareholderdoesnotindicateonthisformofproxythatitsproxyistovoteinfavouroforagainstanyresolutionortoabstainfromvoting,orgivescontradictoryinstructions,orshouldanyfurtherresolution(s)oranyamendment(s)whichmayproperlybeputbeforetheSchemeMeetingbeproposed,oranyresolutionlistedintheformofproxyismodifiedoramended,suchproxyshallbeentitledtovoteasheorshethinksfit.If,however,theAltechShareholderhasprovidedseparatewritteninstructionswhichaccompanythisformofproxyandwhichindicatehowtheproxyshouldvoteorabstainfromvotinginanyofthecircumstancesreferredtoabove,thentheproxyshallcomplywiththoseinstructions.

7. AnAltechShareholderortheproxyisnotobligedtocastallthevotesexercisablebytheAltechShareholderorbyproxy,butthetotalofthevotescastinrespectofwhichabstentionisrecordedmaynotexceedthetotalnumberofthevotesexercisablebytheAltechShareholderorbyproxy.

8. AvotecastoractdoneinaccordancewiththetermsofthisformofproxyshallbevalidinrelationtotheSchemeMeeting,notwithstandingthepreviousdeath,insanityorotherlegaldisabilityofthepersonappointingtheproxy,ortherevocationoftheproxy,orthetransferoftheordinarySharesinrespectofwhichtheproxyisgiven,unlessnoticeastoanyoftheabovementionedmattersshallhavebeenreceivedbytheTransferSecretariesortheChairpersonoftheSchemeMeetingbeforethecommencementorresumptionoftheSchemeMeeting.

9. ThecompletionandlodgingofthisformofproxywillnotprecludetherelevantAltechShareholderfromattendingtheSchemeMeetingandspeakingandvotinginpersonthereattotheexclusionofanyproxyappointedintermshereof,shouldsuchAltechShareholderwishtodoso.Accordingly,theappointmentofaproxyintermshereofissuspendedatanytimeandtotheextentthattheAltechShareholderchoosestoactdirectlyandinpersonintheexerciseofanyrightsasanAltechShareholder.

10. AnAltechShareholdermayrevoketheproxyappointmentby(i)cancellingitinwriting,ormakingalaterinconsistentappointmentofaproxy,and(ii)deliveringacopyoftherevocationinstrumenttotheproxyandtotheCompany.Therevocationofaproxyappointmentconstitutesacompleteandfinalcancellationoftheproxy’sauthoritytoactonbehalfoftheAltechShareholderasofthelaterof(i)thedatestatedintherevocationinstrument,ifany,or(ii)thedateonwhichtherevocationinstrumentwasdeliveredtotheCompany.

11. Anyalterationorcorrectionmadetothisformofproxy,otherthanthedeletionofalternatives,mustbeinitialledbythesignatory(ies).

12. TheChairpersonoftheSchemeMeetingmayrejectoracceptanyformofproxywhichiscompletedand/orreceived,otherthanincompliancewiththesenotes.

13. Documentaryevidenceestablishingtheauthorityofapersonsigningthisformofproxyinarepresentativecapacitymustbeattachedtothisformofproxy,unlesspreviouslyrecordedbytheCompanyorunlessthisrequirementiswaivedbytheChairpersonoftheSchemeMeeting.

14. Aminororanyotherpersonunder legal incapacitymustbeassistedbyhisparentorguardian,asapplicable,unlesstherelevantdocumentsestablishinghiscapacityareproducedorhavebeenregisteredwiththeCompany.

15. WheretherearejointholdersofAltechShares:

• anyoneholdermaysignthisformofproxy;

• thevote(s)of theseniorAltechShareholders(forthatpurposesenioritywillbedeterminedbytheorder inwhichthenamesofAltechShareholdersappearintheCompany’sregisterofAltechShareholders)whotendersavote(whetherinpersonorbyproxy)willbeacceptedtotheexclusionofthevote(s)oftheotherjointAltechShareholder(s).

16. Forms of proxy (yellow)must be lodged with or mailed to Computershare investor Services proprietary Limited:

hand deliveries to: postal deliveries to:

ComputershareInvestorServices ComputershareInvestorServicesProprietary Limited Proprietary LimitedGroundFloor,70MarshallStreet,Johannesburg,2001 POBox61051,Marshalltown,2107

tobereceivedbynolaterthan11:00onThursday,25July2013(or24hoursbeforetheresumptionofanadjournedSchemeMeetingwhichdate,ifnecessary,willbereleasedonSENS).FormsofproxymayalsobehandedtothechairpersonoftheSchemeMeetingbeforeitscommencementorrecommencement.

17. If this formofproxyhasbeendelivered to theCompany, as long as that appointment remains ineffect, anynotice that is requiredby theCompaniesActortheCompany’smemorandumofincorporationtobedeliveredbytheCompanytotheAltechShareholdermustbedeliveredbytheCompanyto(i)theAltechShareholderor(ii)theproxyorproxies,iftheAltechShareholderhasdirectedtheCompanyinwritingtodosoandpaidanyreasonablefeechargedbytheCompanyfordoingso.

ALLiEd TEChNOLOgiES LimiTEdIncorporatedintheRepublicofSouthAfrica

(Registrationnumber1946/020415/06)Sharecode:ALT ISIN:ZAE000015251

(“Altech”or“theCompany”)

FOrm OF ELECTiON, SurrENdEr ANd TrANSFEr iN rESpECT OF SChEmE (“FOrm”)

important notes concerning this Form:

• ThisFormisonlyforuseinrespectoftheschemeofarrangementintermsofsection114oftheCompaniesAct,2008proposedbyAltechbetweenAltechandAltechShareholders,pursuanttowhichAlfin, Altron’swhollyownedsubsidiary,willacquiretheentireissuedordinarysharecapitalofAltechthatAltronanditsSubsidiariesdonotalreadyown(“theScheme”).

FulldetailsoftheSchemearecontainedintheCirculartoAltechShareholders,dated27June2013(“Circular”),towhichthisFormisattached.Accordingly,alltermsusedinthisFormshall,unlessthecontextotherwiserequiresortheyareotherwisedefinedherein,havethemeaningattributedtothemintheCircular.

• SchemeParticipantscanelecttoreceivetheCashConsiderationand/ortheShareConsideration.Intheabsenceofanelectionby12:00ontheSchemeConsiderationRecordDate,therelevantSchemeParticipantswillbedeemedtohaveelectedtoreceivetheCashConsideration.SchemeParticipantswhoarenon-residentsofSouthAfrica,orwhohavearegisteredaddressoutsideofSouthAfrica,andtowhomtheShareConsiderationcannotbeofferedunlessAltronand/orAltechcomplieswithfilingand/orotherregulatoryobligationsinthejurisdictionsinwhichsuchAltechShareholdersareresident,willbedeemedtoelecttoreceivetheCashConsiderationirrespectiveoftheiractualelection.

• ADissentingShareholderwhosubsequentlybecomesaSchemeParticipantaftertheSchemeConsiderationRecordDatewillbedeemedtohaveelectedtoreceivetheCashConsideration.

• This Form is attached for the convenience of certificated Altech Shareholders who may wish to surrender their documents of Title prior to the date of the Scheme meeting to be held at 11:00 on Friday, 26 July 2013.

• hOLdErS OF dEmATEriALiSEd ALTECh ShArES muST NOT COmpLETE ThiS FOrm.

iNSTruCTiONS:

1. ThesurrenderofDocumentsofTitleisforuseonlybyCertificatedSchemeParticipants.

2. AseparateFormisrequiredforeachCertificatedSchemeParticipant.

3. PartAmustbecompletedbyallSchemeParticipantswhoreturnthisForm.

4. PartBmustbecompletedbyallSchemeParticipantswhoareemigrantsfromSouthAfrica,theRepublicofNamibiaandtheKingdomsofLesothoandSwaziland(collectively“theCommonMonetaryArea”).

5. IfthisFormisreturnedwiththerelevantDocumentsofTitletoAltechShares,itwillbetreatedasaconditionalsurrenderwhich ismadesubject to theSchemebecomingoperative. In theeventof theSchemenotbecomingoperativeforanyreasonwhatsoever,ComputershareInvestorServicesProprietaryLimitedwill,bynotlaterthanfiveBusinessDaysafterthedateuponwhichitbecomesknownthattheSchemewillnotbeoperative,returntheDocumentsofTitletotheAltechShareholdersconcerned,byregisteredpost,attheriskofsuchAltechShareholders.

6. PersonswhohaveacquiredAltechSharesafterthedateoftheissueoftheCirculartowhichthisFormisattached,mayobtaincopiesoftheFormandtheCircularfromComputershareInvestorServicesProprietaryLimited,70 MarshallStreet,Johannesburg,2001(POBox61051,Marshalltown,2107).

7. The Scheme Consideration will not be sent to Certificated Scheme Participants unless and until Documentsof Title in respect of the relevant Scheme Shares have been surrendered to Computershare Investor ServicesProprietary Limited.

8. If a SchemeParticipant fails to complete the Form in respectof all of theAltech Shares, held by such SchemeParticipant or if the election by the Scheme Participant in respect of any Altech Shares held by such SchemeParticipantisunclear,thatSchemeParticipantwillbedeemedtohaveelectedtoreceivetheCashConsiderationinrespectofsuchAltechShares

To: Computershare investor Services proprietary Limited ground Floor,70 marshall Street,Johannesburg, 2001 (pO Box 61763, marshalltown, 2107)

DearSirs

pArT A: To be completed by ALL Scheme participants who return this Form.

I/Weherebysurrender theAltechsharecertificate/sand/orotherDocumentsofTitleattachedhereto, representingordinaryshareswithaparvalueof0.5centeach,registeredinthenameofthepersonmentionedbelowandauthorisetheTransferSecretaries,conditionalupontheSchemebecomingoperative,toregisterthetransferoftheseAltechSharesintothenameofAltronFinanceProprietaryLimitedoritsnominee(s):

Name of Altech Shareholder Certificate number(s)

Number of Altech Shares covered by each certificate(s)

enclosed

Total

againstpaymentoftheSchemeConsiderationasfollows:

Number of Altech Shares:

CashConsiderationinrespectof:

ShareConsiderationinrespectof:

Surname or Name of corporate body:

Firstname(s)infull

Title(Mr,Mrs,Miss,Ms,etc)

AddresstowhichtheSchemeConsiderationshouldbesent(ifdifferentfromregisteredaddress)

Postalcode

Note:

Signature of Altech ShareholdersName and address of agent lodging this Form

(if any)

Assistedbyme(ifapplicable)

(Statefullnameandcapacity)

Date 2013

Telephonenumber(Home)( )

Telephonenumber(Work)( )

Cellphonenumber

pArT B: To be completed by emigrants of the Common monetary Area.

NominatedauthoriseddealerinthecaseofaSchemeParticipantwhoisanemigrantfromtheCommonMonetaryArea(seenote2below).NB: pArT A must also be completed.

Nameofdealer Accountnumber

Address

pArT C: Bank Account details of Altech Shareholders.

To be completed in BLOCK CApiTALS by Altech Shareholders wishing to receive payment of the Cash Consideration by means of EFT. The option of electronic payment into an Altech Shareholder’s bank account is only applicable if documents of Title are received on or before 12:00 on Friday, 16 August 2013.

I/We,beingaholder/sofAltechSharesherebyrequestthattheCashConsideration,beelectronicallydepositedintomy/ourbankaccount,thedetailsofwhichareasfollows:

Nameofaccountholder(nothirdpartyaccounts):

Bankname:

Branchname:

Branchcode:

Accountnumber:

SignatureofShareholder:

Assistedbyme(ifapplicable):

(Statefullnameandcapacity):

Date:

Tel(Home)( ) Tel(Work)( ) Cellphone

IntermsofFICA,ComputershareInvestorServicesProprietaryLimitedwillonlybeabletorecordthebankdetails ifcertifiedtruecopiesoftheShareholder’sIDDocumentandBankStatementaresubmittedwiththisForm.

PARTD:TobecompletedinBLOCKCAPITALSbyAltechShareholderswhoareemigrantsfromtheCommonMonetaryArea(“emigrants”)andnon-residentsoftheCommonMonetaryArea(seenotes1and2below).

TheSchemeConsiderationwillbeforwardedtotheauthoriseddealerinforeignexchangeinSouthAfricacontrollingtheemigrant’sblockedassetsintermsoftheExchangeControlRegulationsasnominatedbelowforitscontrolandcreditedtotheemigrant’sblockedassetsaccount.Accordingly,AltechShareholderemigrantsmustprovidethefollowinginformation:

Nameofauthoriseddealer :

Accountnumber:

Address:

Accountnumber:

if emigrants make no nomination above, the Company Secretary will hold the consideration in trust. Non-residents: must complete part d if they wish the Scheme Consideration to be paid to an authorised dealer in South Africa.

Notes and instructions:

1. EmigrantsfromtheCommonMonetaryAreamustcompletePartB.

2. All other non-residents of theCommonMonetaryAreamust complete PartD if theywish the SchemeConsideration to be paid to anauthoriseddealerinSouthAfrica.

3. IfPartBisnotproperlycompletedbyemigrants,theSchemeConsiderationwillbeheldintrustbytheCompanySecretarypendingreceiptofthenecessarynominationorinstruction.Nointerestwillbepaidontheamountsoheldintrust.

4. Noreceiptswillbeissuedfordocumentslodgedunlessspecificallyrequested.IncompliancewiththerequirementsoftheJSE,lodgingagentsarerequestedtopreparespecialtransactionreceipts,ifrequired.SignatoriesmaybecalleduponforevidenceoftheirauthorityorcapacitytosignthisForm.

5. PersonswhoareemigrantsfromtheCommonMonetaryAreashouldnominatetheauthoriseddealerinforeignexchangeinSouthAfricawhichhascontroloftheirblockedassetsinPartBofthisForm.Failingsuchnomination,theSchemeConsiderationduetosuchSchemeParticipantsinaccordancewiththeprovisionsoftheSchemewillbeheldbyAltech,pendinginstructionsfromtheSchemeParticipantsconcerned.

6. AnyalterationtothisFormmustbesignedinfullandnotinitialled.

7. IfthisFormissignedunderapowerofattorney,thensuchpowerofattorney,oranotariallycertif iedcopythereof,mustbesentwiththisFormfornoting(unlessithasalreadybeennotedbyAltechortheTransferSecretaries).ThisdoesnotapplyintheeventofthisFormbearingaJSE Broker’sstamp.

8. WheretheSchemeParticipantisacompanyoraclosecorporation,unlessithasalreadybeenregisteredwithAltechortheTransferSecretaries,acertif iedcopyofthedirectors’ormembers’resolutionauthorisingthesigningofthisFormmustbesubmittedifsorequestedbyAltech.

9. If this Form is not signed by the Scheme Participant, the Scheme Participant will be deemed to have irrevocably appointed the TransferSecretariestoimplementtheSchemeParticipant’sobligationsundertheSchemeonhisorherbehalf.

10. WherethereareanyjointholdersofanySchemeShares,onlythatholderwhosenamestandsfirstintheRegisterinrespectofsuchSharesneedsignthisForm.

11. Aminormustbeassistedbyhisorherparentorguardian,unlesstherelevantdocumentsestablishinghisorherlegalcapacityareproducedorhavebeenregisteredbytheTransferSecretaries.