DTC 201704070006A
Update to cautionary announcement and trading statement

Datatec Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1994/005004/06)
ISIN: ZAE000017745
Share Code: DTC
(“Datatec” or “the Company”)

UPDATE TO CAUTIONARY ANNOUNCEMENT AND TRADING STATEMENT

Datatec Limited (JSE/AIM: DTC), the international Information and
Communications Technology (ICT) Company is publishing an update to its
cautionary announcement and a trading statement for the year ended
28 February 2017.

The update to the cautionary relates to the possible sale of a major
share of Westcon-Comstor’s operations for a consideration (current and
deferred) of more than US$800 million.

The trading statement advises that underlying earnings per share*,
headline earnings per share and earnings per share are expected to be
more than 50% lower than the prior year.

Update to cautionary announcement

On 25 January 2017, the Company issued a cautionary announcement,
informing shareholders that it had entered into negotiations
around a possible transaction. The Company renewed this
cautionary announcement on 8 March 2017.

The Company is required to provide this further information pursuant to
AIM Rule 10 of the AIM Rules for Companies to provide further context
to the cautionary announcements made in January and March 2017.

The Company can now disclose that the cautionary announcement relates
to a possible sale of a major share of Westcon-Comstor’s operations for
a consideration (current and deferred) of more than US$800 million. The
proposed transaction is subject to contract and exclusivity provisions.

There can be no certainty that the transaction will be completed,
nor as to the precise terms on which the transaction might be
completed. Shareholders are therefore advised to continue to
exercise caution when dealing in the Company’s securities. The
Company undertakes to announce further details of the potential
transaction as soon as practicable.

Trading statement

In the Company’s unaudited interim results announcement for the six
months ended 31 August 2016, issued on 19 October 2016, shareholders
were advised that, based on current trading and prevailing exchange
rates, underlying earnings per share* in the second half of the
financial year ended 28 February 2017 (“FY17”) was expected to be
sequentially better than H1 FY17 and also comparatively better than the
second half of the previous financial year, and the full FY17
underlying earnings per share was expected to be better than the prior
year.

In terms of the JSE Limited Listings Requirements, companies are
required to publish a trading statement as soon as they are satisfied
that a reasonable degree of certainty exists that the financial results
for the period to be reported on next will differ by at least 20% from
the most recent profit forecast or the previous financial year.

Accordingly, shareholders are advised that underlying earnings per
share* for FY17 is expected to be more than 50% lower (or at least
16 US cents per share lower) than the prior year (FY16: 32 US cents).
Headline earnings per share and earnings per share are also expected to
be more than 50% lower (or at least 10 US cents lower) than the prior
year (FY16: 19.4 US cents and 19.3 US cents respectively).

Datatec is still in the process of finalising the results for FY17 and
will provide a more detailed trading statement as soon as practicable.

The year over year expected decline in earnings is as a result of a
worse than expected result in Westcon-Comstor. There was a decline in
fourth quarter financial performance in the Europe Middle East and
Africa (“EMEA”) region. Westcon-Comstor experienced disruption to the
business as a result of final stages of SAP implementation in EMEA.
Westcon-Comstor has made adjustments to the operating model and Datatec
expects this to support a rapid recovery.

Logicalis trading was in line with management’s expectation.

The forecast financial information contained in this trading statement
has not been reviewed or reported on by the Company’s auditors.

This announcement contains inside information.

*underlying earnings per share excludes impairments of goodwill and
intangible assets, profit or loss on sale of investments and assets,
amortisation of acquired intangible assets, unrealised foreign exchange
movements, acquisition-related adjustments, fair value movements on
acquisition-related financial instruments, restructuring costs relating
to fundamental reorganisations and the taxation effect on all of the
aforementioned

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

Sandton
7 April 2017

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