DTC - Datatec Limited - Pre-Close Statement
13 September 2007 8:00
DTC
 DTC                                                                             
DTC - Datatec Limited - Pre-Close Statement                                     
Datatec Limited                                                                 
(Incorporated in the Republic of South Africa)                                  
(Registration number: 1994/005004/06)                                           
ISIN: ZAE000017745                                                              
Share Code: DTC                                                                 
PRE-CLOSE STATEMENT                                                             
Datatec, ("Datatec" or the "Group", JSE and LSE: DTC), the international        
Information and Communications Technology (ICT) group, today announces its pre- 
close statement for the six months ended 31 August 2007.                        
Group                                                                           
Group trading during the first half of the financial year has been in line with 
the Board`s expectations, with the exception of Logicalis` US operations. The   
Board remains confident of a strong performance in the second half across the   
Group and expects to report continued improvement in Headline Earnings per Share
(excluding any positive or negative unrealised foreign exchange movements) for  
the year to 29 February 2008.                                                   
Group revenues for the six months to 31 August 2007 are expected to increase by 
26% to approximately $1.9 billion (2006 restated: $1.52 billion).  The Board    
expects EBITDA to be approximately $60 million (2006: $52.0 million) and        
Headline Earnings per Share for the first half to increase by approximately 7%  
in relation to the comparative financial period last year.                      
Westcon                                                                         
Westcon has continued to perform well, with strong revenue growth in Europe and 
Asia Pacific and lower growth in the US. Revenues and gross profit are expected 
to be in line with the Board`s expectations for the first six months of the     
financial year.  Operating costs as a percentage of revenues have increased,    
largely as a result of the NOXS and Crane acquisitions in Europe.  As expected, 
Westcon saw lower seasonal contribution from these acquisitions and their       
integration is progressing well.  Overall, Westcon EBITDA margins are expected  
to increase slightly compared with the first half of last year.                 
Logicalis                                                                       
Within Logicalis, Europe and South America have performed strongly and continued
to benefit from customers` complex ICT needs by focusing on demand for advanced 
systems and networking infrastructure, unified communication, data centre and   
managed services. As stated at the full year results, growth in the US has      
moderated.  However, during the second quarter growth slowed more than          
management anticipated.  Consequently operating costs, which had increased as a 
result of the recent acquisitions and investment in the sales infrastructure,   
were too high.  Management has taken prompt action to restructure the US        
operations, which has resulted in a workforce reduction of approximately 12%    
with all costs from this action accounted for in the first half. Logicalis is   
therefore expected to report lower first half EBITDA compared with last year.   
Logicalis management is confident that the swift actions taken will result in an
improved performance in EBITDA for the full year compared to the previous year. 
Analysys Mason Group                                                            
Analysys Mason Group has performed well, with a modest increase in revenues and 
improved gross margins, while planned investment into the research operation    
muted profitability growth.                                                     
Africa and Middle East                                                          
Africa and the Middle East have performed in line with Board`s expectations     
following last year`s significant improvements, with revenues and profits       
significantly up.                                                               
Interim results                                                                 
The Group expects to publish its interim results for the six months ended 31    
August 2007 on Thursday 25 October 2007.                                        
The financial information on which this pre-close statement is based has not    
been reviewed and reported on by Datatec`s auditors.                            
12 September 2007                                                               
Datatec Limited  (www.datatec.co.za)                                            
David Pfaff, Group Finance Director      +44 (0) 17537 97111                    
Wilna de Villiers, Group Marketing     +27 (0) 11 233 1013                      
Manager                                                                         

Dresdner Kleinwort                                                              
 James Rudd                            +44 (0) 20 7475 7006                     
                                                                                
College Hill                                                                    
Adrian Duffield/Jon Davis              +44 (0) 20 7457 2020                     
Nick Williams/Fred Cornet (SA press)   +27 11 447 3030                          
Note to Editors                                                                 
Datatec Limited 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 Group Inc), IT      
infrastructure solutions and network integration (Logicalis Ltd) and strategic  
telecommunications consulting (Analysys Mason Group Ltd). Datatec is registered 
in South Africa and its shares are listed in Johannesburg and London.  The Group
has more than 3,000 employees around the world.                                 
In the year to 28 February 2007, the Group reported an increase in revenue of   
17% to $3,2 billion (2006 restated: $2,7 billion), operating profit increased   
45% to $100 million (2006: $69 million), and headline earnings per share grew to
40.80 cents (2006: 26.9 cents).                                                 
Date: 13/09/2007 08:00:01 Produced by the JSE SENS Department.                  
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