SENS Note - 25 November 1999

M-Cell results for the 6 months ended 30 Sep 99

Revenue rose 331% to R2 736.9 m (R635m) as a result of strong growth in revenues from MTN. The increase also reflects the increased shareholding in MTN by the group. Total earnings before interest, taxation, depreciation and amortisation rose 434% to R844.4m (R158.1m). Headline earnings per share grew 118% to 19.4cps (8.9 cents). Goodwill amounting to R4 964m was written off against reserves during the period. Pro forma results for the 6 months ended 30 Sep 98 have been restated to reflect the change in MTN's accounting policy for subscriber acquisition costs. MTN continued to enjoy strong subscriber growth in SA, with the active subscriber base rising by 36% during the review period. The subscriber growth boosted revenues by 29% to R2 700m. Negotiations are under way to acquire the remaining 28% interest in MTN not owned by M-cell in exchange for the issue of new m-cell ordinary shares, and the transfer of the listing of M-cell from the industrial-development sector to the industrial-telecommunications sector of the JSE is still to be confirmed.