DTC
 DTC                                                                             
DTC - Datatec - Earnings Update and Change in Accounting for Revenue Recognition
on Vendor Maintenance Contracts                                                 
DATATEC LIMITED                                                                 
(Incorporated in the Republic of South Africa)                                  
(Registration number: 1994/005004/06)                                           
ISIN: ZAE000017745                                                              
Share Code: DTC                                                                 
("Datatec" or "the Group")                                                      
EARNINGS UPDATE AND CHANGE IN ACCOUNTING FOR REVENUE RECOGNITION ON VENDOR      
MAINTENANCE CONTRACTS                                                           
Datatec Ltd ("Datatec", the "Group", JSE and LSE: DTC), has announced today an  
increase in its expected EBITDA and earnings for the year to 28 February 2007   
and a change in the Group`s accounting for vendor maintenance contract sales.   
The Group is also today placing 7,200,000 new ordinary shares of ZAR0.01 each at
a price of 243 pence per share (ZAR34.09), raising GBP17.5 million (US$34.8     
million) - see separate announcement.                                           
The Group expects EBITDA and earnings to be higher than anticipated on 14 March 
2007 when Datatec published its last trading update. EBITDA for the year ended  
28 February 2007 is now expected to be approximately $119 million compared with 
the $117 million as advised on 14 March 2007 (2006: $85 million).  Headline     
earnings and attributable earnings are both expected to be approximately 40 US  
cents per share, aided by a lower than expected tax rate, compared with the     
range of 35 to 38 US cents per share advised on 14 March 2007 (2006: 26.91 US   
cents and 26.54 US cents respectively).                                         
One of the activities of the Group is the sale of vendor maintenance contracts  
under which a maintenance service is provided by the supplier of the equipment  
directly to Datatec`s customers.  To date, Datatec has included the total       
revenue from these contracts on a gross basis in its income statement.          
In line with Datatec`s industry peers and as these types of arrangements become 
an increasingly significant feature of the Group`s operating model, the Board   
has decided to change Datatec`s accounting for vendor maintenance contracts onto
a net revenue basis.  The gross profit element only from these contracts will   
now be included in the Group`s revenues in its income statement.                
This change does not affect the Group`s gross profit, EBITDA, net income,       
balance sheet nor cash flow statement. The change has been implemented with     
effect from the year ended February 2007 and comparative figures have been      
restated accordingly. This had the effect of decreasing revenue and cost of     
sales by approximately $330 million in 2007 (2006: approximately $ 260 million).
Following the change of accounting, for the year ended February 2007, revenues  
are expected to increase to approximately $3.2 billion (2006: restated          
approximately $2.7 billion).  In the year end trading update on 14 March 2007   
the Group reported under the previous accounting method that its consolidated   
revenues were expected to increase to almost $3.5 billion (2006: $2.98 billion).
The financial information on which this trading statement is based has not been 
reviewed and reported on by the Company`s auditors.                             
Datatec will publish its results for the year to 28 February 2007 on Wednesday, 
16 May 2007.                                                                    
Enquiries:                                                                      
Datatec Limited  (www.datatec.co.za)                                            
David Pfaff, Group Finance Director    +27 (0) 11 233 1013                      
Wilna de Villiers, Group Marketing                                              
Manager                                                                         
                                                                                
College Hill (UK press)                                                         
Adrian Duffield/Corinna Dorward        +  44 (0) 20 7457 2020                   

Fleishman-Hillard (SA press)                                                    
Lucien Vallun                          + 27 (0) 11 548 2000                     
Note to Editors                                                                 
Datatec is an international Information & Communications Technology (ICT) group 
focused on the supply of advanced ICT and the delivery of professional services 
into the higher growth segments of the global market.  The Group`s main lines of
business comprise the global distribution of advanced networking and            
communications convergence products (Westcon), IT infrastructure solutions and  
network integration (Logicalis) and strategic telecommunications consulting     
(Analysys Mason). Datatec is registered in South Africa and its shares are      
listed in Johannesburg and London.  The Group has 3,000 employees around the    
world.                                                                          
3 March 2007                                                                    
Sponsor                                                                         
RAND MERCHANT BANK (A division of FirstRand Bank Limited)                       
Date: 03/05/2007 09:01:01 Produced by the JSE SENS Department.