Prospects

For the 34 weeks to 20 February 2011, total sales increased by 12.6% and comparable sales increased by 6.4%.

Should the trends experienced in the Christmas period and the subsequent eight weeks continue, we expect a difficult second-half. Management will be focused on reducing stock levels, holding gross margins and containing costs, to continue to grow annual operating profit (excluding foreign exchange losses or profits), albeit perhaps at lower levels than achieved in the first half of this financial year.

In the event that the Walmart transaction is approved, shareholders are reminded of the financial effects associated with the transaction that were communicated in the circular to Massmart shareholders dated 9 December 2010, including advisors’ fees of R194 million.

The financial information on which this outlook statement is based has not been reviewed or reported on by the Company’s external auditors.