Datatecs Westcon Group Acquires Distribution Opera
2 May 2006 13:06
DTC
 DTC                                                                             
Datatec"s Westcon Group Acquires Distribution Operations Of Ronco Communications
And Electronics                                                                 
DATATEC LIMITED                                                                 
(Incorporated in the Republic of South Africa)                                  
(Registration number: 1994/005004/06)                                           
ISIN: ZAE000017745                                                              
Share Code: DTC                                                                 
("Datatec")                                                                     
PRESS RELEASE - Datatec"s Westcon Group acquires Distribution Operations of     
Ronco Communications and Electronics                                            
Datatec announced today that Westcon Group has acquired the distribution arm of 
Ronco Communications and Electronics for an undisclosed sum.  The successful    
acquisition will transform Westcon into the number one distributor of Nortel    
voice and data products in North America. Nortel is now Westcon Group"s second  
largest vendor by revenue.                                                      
Following the acquisition, Westcon Group North America is well placed to provide
more broad-based solutions in convergence, a high growth area of networking. The
group is also poised to take a leadership position in voice and data            
distribution in North America.  The deal is testament to Weston"s ongoing       
commitment to Nortel.                                                           
The new operation, renamed Ronco Distribution, will be managed by Kurt Ruesch,  
former president, distribution for Ronco.                                       
Westcon Group"s acquisition follows four months after it secured a US$150       
million working capital facility to finance the operations of the group"s three 
US operating divisions, Comstor, Voda One and Westcon as well as its business in
Canada. The group also secured a US$40 million second lien term loan to provide 
additional long-term capital to fund growth of the Westcon businesses.          
Sandton                                                                         
2 May 2006                                                                      
Sponsor                                                                         
RAND MERCHANT BANK (A division of FirstRand Bank Limited)                       
Date: 02/05/2006 01:06:49 PM Produced by the JSE SENS Department