ALTECH RESULTS - ENG by gyvwpsjkko

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									ALTECH RESULTS - ENG               4/19/06        2:32 PM         Page 1 (1,1)

      A U D I T E D A B R I D G E D C O N S O L I D A T E D A N N U A L F I N A N C I A L R E S U L T S F O R T H E Y E A R E N D E D 2 8 F E B RU A R Y 2 0 0 6 A N D R E N E W A L O F C A U T I O N A R Y A N N O U N C E M E N T

          (Incorporated in the
   Republic of South Africa)
      (Registration number
      1946/020415/06)
       Share code: ALT
ISIN: ZAE000015251
                                                      A LT E C H

                   Leading Technologies: Touching Lives                                                               HEPS up 12%                            Revenue exceeds                               Operating income from                                    Strong balance sheet                           Dividend increased
                                                                                                                                                                  R6 bn                                    continuing operations                                    with cash at R1.5 bn                                by 20.1%
                                                                                                                                                                                                            exceeds R500 million


       Abridged income statements                                                                                      Statements of changes in equity
                                                                                                       2005                                                                                            Share                                                                                            Ordinary
                                                                                                                   Group                                                                          capital and             Treasury           Other                                Retained          shareholders              Minority        Total
                                                                        %             2006     (Audited and
                                                                                                                   Figures in R million                                                             premium                 shares         reserves           Revaluation         earnings                equity              interest       equity
   Figures in R million                                             Change         (Audited)   IFRS restated)
   Revenue                                                                9           6 041            5 552          Balance at 29 February 2004                                                          55                   –                 1                   35             1 470                1 561                    44         1 605
                                                                                                                      Transfer between reserves                                                             –                   –                 –                  (35)               35                    –                     –             –
   Operating income before goodwill impairment and                                                                    Treasury shares purchased                                                             –                (257)                –                    –                 –                 (257)                    –          (257)
    capital items                                                                       485              491          Foreign currency translation differences                                              –                   –                (1)                   –                 –                   (1)                    –            (1)
   Investment income                                                                     54               49          Attributable earnings                                                                 –                   –                 –                    –               319                  319                    17           336
   Finance costs                                                                         (5)              (4)         Acquisition of joint venture                                                          –                   –                 –                    –                 –                    –                     9             9
   Income from associates                                                                26               12          Acquisition of subsidairy                                                             –                   –                 –                    –                 –                    –                    46            46
   Goodwill impaired                                                                    (82)              (9)         Capital introduced                                                                    –                   –                 –                    –                 –                    –                    26            26
   Capital items (Note 1)                                                                74              (12)         Dividends                                                                             –                   –                 –                    –              (151)                (151)                    –          (151)
   Income before taxation                                                               552              527          Issue of share capital                                                                3                   –                 –                    –                 –                    3                     –             3
   Taxation                                                                             183              191          Minority shareholders’ loan reclassified                                              –                   –                 –                    –                 –                    –                   (48)          (48)
                                                                                                                      Other movements                                                                       –                   –                 –                    –                 6                    6                     –             6
   Income after taxation                                                 10             369              336
                                                                                                                      Balance at 28 February 2005 (IFRS restated)                                          58                (257)                –                    –             1 679                1 480                    94         1 574
   Attributable to minority shareholders                                                  5               17
                                                                                                                      Share-based payments                                                                  –                    –                –                    –                 2                    2                     –             2
   Attributable to ordinary shareholders                                                364              319
                                                                                                                      Foreign currency translation differences                                              –                    –                1                    –                 –                    1                     –             1
                                                                                        369              336          Attributable earnings                                                                 –                    –                –                    –               364                  364                     5           369
   Basic earnings per share (cents)                                      16             373              321          Capital introduced                                                                    –                    –                –                    –                 –                    –                     5             5
                                                                                                                      Disposal of joint venture                                                             –                    –                –                    –                 –                    –                   (10)          (10)
   Weighted average number of ordinary
                                                                                                                      Dividends                                                                             –                    –                –                    –              (170)                (170)                   (5)         (175)
   shares in issue (millions)                                                       97 591           99 344
                                                                                                                      Issue of share capital                                                                4                    –                –                    –                 –                    4                     –             4
   Headline earnings per share (cents)                                   12             379              338
                                                                                                                      Balance at 28 February 2006 (Audited)                                                62                (257)                1                    –             1 875                1 681                    89         1 770

   Notes:

   1. Capital items
        Net loss on disposals                                                            (1)              (2)
                                                                                                                       Abridged segmental analysis
        Divisional closure costs                                                        (54)             (10)                                                                                                                                                                                                        2005
        Profit on disposal of Econet Wireless Global Limited                            129                –                                                                                                                                               2006                                              (Audited and
                                                                                                                   Figures in R million                                                                                                                 (Audited)                       %                    IFRS restated)                      %
                                                                                         74              (12)
                                                                                                                   Revenue:
   2. Reconciliation between earnings and headline earnings                                                        Telecommunications division                                                                                                            4 521                         75                          3 912                        70
        Attributable to ordinary shareholders                                           364              319       Multi-Media and Electronics divisions                                                                                                    801                         13                            784                        14
        Goodwill impaired                                                                82                9       Information Technology division                                                                                                          800                         13                            929                        17
        Capital items – gross                                                           (74)              12       Inter-group sales                                                                                                                        (81)                        (1)                           (73)                       (1)
        Net profit on disposal of property, plant and equipment                           –               (1)
                                                                                                                                                                                                                                                          6 041                        100                          5 552                       100
        Tax effect of above adjustments                                                   4               (2)
        Minority interest                                                                (6)              (1)      Operating income:
      Headline earnings                                                                 370              336       Telecommunications division                                                                                                              430                         89                            333                        68
                                                                                                                   Multi-Media and Electronics divisions                                                                                                     21                          4                              5                         1
   3. Diluted earnings per share and diluted headline earnings per share are not materially different from basic   Information Technology division                                                                                                           40                          8                            151                        31
      earnings per share and headline earnings per share, respectively.                                            Corporate net (loss)/income                                                                                                               (6)                        (1)                             2                         –
   4. The Altech group's auditors, PKF (Jhb) Inc., have audited these year-end results. Their unqualified audit                                                                                                                                             485                        100                            491                       100
      report is available for inspection at the company's registered office during normal office hours.


                                                                                                                       Adoption of International Financial Reporting Standards
       Abridged balance sheets
                                                                                                                   Basis of preparation                                                                                                  In R million                                       Notes                         28-Feb-05       1-Mar-04
                                                                                                        2005       The group has adopted International Financial Reporting Standards (IFRS) for the year ended 28 February 2006.
                                                                                                                   The financial statements for the year ended 28 February 2006 is the group's first consolidated IFRS-compliant         Assets and liabilities adjustments
                                                                                     2006       (Audited and
                                                                                                                   financial statements and hence IFRS 1 First time adoption of IFRS has been applied.                                   Property, plant, equipment and intangible assets      3                                     1           –
   Figures in R million                                                           (Audited)     IFRS restated)     An explanation of how the transition to IFRS has affected the previously reported financial position and              Goodwill                                              1                                    30           –
                                                                                                                   performance of the group is provided below.
   Assets                                                                                                                                                                                                                                Deferred tax                                                                                1           –
                                                                                                                   Significant changes to the group's accounting policies as a result of the adoption of IFRS
   Non-current assets                                                                  650             1 103                                                                                                                             Minority shareholders' interest                                                           (31)         (4)
                                                                                                                   Goodwill
      Property, plant and equipment                                                    279               242                                                                                                                             Accounts payable                                                                           (5)         (1)
                                                                                                                   All business combinations are accounted for by applying the "purchase method". Goodwill represents amounts
      Goodwill                                                                         332               531       arising on acquisition of subsidiaries and associates. In respect of business combinations that have occurred since                                                                                              (4)         (5)
ALTECH RESULTS - ENG               4/19/06   2:32 PM   Page 1 (1,2)
                                                                                               Significant changes to the group's accounting policies as a result of the adoption of IFRS
  Non-current assets                                                   650           1 103                                                                                                                            Minority shareholders' interest                                                  (31)             (4)
                                                                                               Goodwill
     Property, plant and equipment                                     279             242                                                                                                                            Accounts payable                                                                  (5)             (1)
                                                                                               All business combinations are accounted for by applying the "purchase method". Goodwill represents amounts
     Goodwill                                                          332             531     arising on acquisition of subsidiaries and associates. In respect of business combinations that have occurred since                                                                                      (4)             (5)
     Intangible assets                                                   9              37     the IFRS transition date, 1 March 2004, goodwill represents the difference between the cost of the acquisition
                                                                                               and the fair value of the net identifiable assets and contingent liabilities acquired.                                 Reconciliation of profit for the year ended 28 February 2005
     Associate and investment                                            –             284
                                                                                               The group has made an election in terms of IFRS 1 that IFRS 3 will only be applied from 1 March 2004. In respect                                                                 As reported                           IFRS
     Deferred taxation                                                  30               9     of acquisitions prior to this date, goodwill is included as at 1 March 2004 at the amount previously recorded
                                                                                               under SA GAAP. The classification and accounting treatment of business combinations that occurred prior to                                                                        previously       Effect of       Restated
  Current assets                                                      2 326          1 678
                                                                                               1 March 2004 has not been reconsidered in preparing the group's opening IFRS balance sheet at 1 March 2004.            Figures in R million                            Notes        (Audited)          IFRS        (Audited)
     Inventories                                                        290            285     From 1 March 2004 goodwill is stated at cost less accumulated impairment losses. Goodwill is allocated to cash-
     Trade and other receivables                                        538            581     generating units and is no longer amortised but tested annually for impairment.                                        Operating income before goodwill
     Cash and cash equivalents                                        1 498            812     Previously goodwill arising on each acquisition was amortised over its useful life on a straight-line basis and        amortisation and capital items                  2, 3             493              (2)            491
                                                                                               subjected to annual impairment testing.                                                                                Investment income                                                 49               –              49
  TOTAL ASSETS                                                        2 976          2 781     Share-based payment transactions                                                                                       Finance costs                                                     (4)              –              (4)
                                                                                               The fair value of share options and deferred delivery shares granted to employees is recognised as an employee         Income from associates                                            12               –              12
  Equity and liabilities                                                                       expense with a corresponding increase in equity. The fair value is measured at grant date and expensed over the
                                                                                               period during which the employee becomes unconditionally entitled to the equity instruments. The fair value of         Goodwill amortised and impaired                   1              (39)             30              (9)
  Total equity                                                        1 770          1 574     the instruments granted is measured using generally accepted valuation techniques, taking into account the terms       Capital items                                                    (12)              –             (12)
     Capital and reserves                                             1 681          1 480     and conditions upon which the instruments are granted. This accounting policy has been applied to all equity
                                                                                               instruments granted after 7 November 2002 that had not yet vested at 1 January 2005, the date of transition to         Income before taxation                                           499              28             527
     Minority interest                                                   89             94     IFRS. The fair value of share-based payments was not recognised under the group's previous accounting policies.        Taxation                                                        (191)              –            (191)
  Non-current liabilities                                               39             107     Straight-lining of operating lease payments                                                                            Income for year                                                  308              28             336
     Long-term liabilities                                               –              70     Payments made under operating leases are recognised in the income statement on a straight-line basis over the
                                                                                                                                                                                                                      Attributable to :
                                                                                               term of the lease. Past practice, whereby operating lease payments were expensed when paid, was based on an
     Minority shareholders’ loan                                        30              31     interpretation that was generally accepted in South African financial reports. This interpretation considered the      Altech shareholders                                              293              26             319
     Deferred taxation                                                   9               6     contractual payments basis as being most representative of the time pattern of the entity's benefit obtained           Minority shareholders                                             15               2              17
                                                                                               from the leased property. The global spotlight has led to the view that the entity is obliged to adopt the straight-
  Current liabilities                                                 1 167          1 100     line basis of accounting for fixed escalation lease payments. The required adjustment has been made as required                                                                         308              28             336
     Trade and other payables                                         1 066            982     by IAS 8 with the necessary restatement of comparative figures.
                                                                                                                                                                                                                      Earnings per share                                               295              26             321
     Warranty provisions                                                  7             11     Reconciliation of equity
                                                                                                                                                                                                                      Headline earnings per share                                      339              (1)            338
     Taxation payable                                                    94            107     In R million                                                          Notes        28-Feb-05         1-Mar-04
                                                                                               Equity previously reported under SA GAAP                                               1 578             1 605         Notes to the IFRS adjustments
  TOTAL EQUITY AND LIABILITIES                                        2 976          2 781     Adjustment upon adoption of IFRS                                                           24                 (1)
                                                                                                                                                                                                                          The effect of the changes is as follows:                Restated         For the
                                                                                               Minority shareholders’ interest                                                           (28)                (4)
  Net asset value per share (cents)                                   1 721                                                                                                                                                                                                             at     year ended              At
                                                                                               Equity reported under IFRS                                                             1 574             1 600
                                                                                    97 413                                                                                                                                                                                       28-Feb-05      28-Feb-05        1-Mar-04
                                                                                               Equity adjustments
                                                                                               Retained earnings:                                                                                                     1.   Goodwill                                                    531            501                7
                                                                                                    Reversal of goodwill amortised                                        1               30                  –            Reversal of goodwill amortised                               30              –                –
                                                                                                    Expensing of share based payments                                     2                1                  –
                                                                                                                                                                                                                           Intangible assets                                             9             37                7
      Abridged cash flow statements                                                                 Property, plant, equipment and intangible assets
                                                                                                    Operating leases
                                                                                                                                                                          3
                                                                                                                                                                          4
                                                                                                                                                                                           1
                                                                                                                                                                                          (4)
                                                                                                                                                                                                              –
                                                                                                                                                                                                             (1)           Retained earnings                                         1 679          1 655            1 506
                                                                                      2005          Attributable to minority shareholders                                                 (3)                 –
                                                                                                                                                                                                                           Minority shareholders’ interest                              94            122               44
                                                                                               Share based payment reserve                                                                (1)                 –
                                                                    2006      (Audited and                                                                                                                            2.   Share-based payments                                          1               –               –
                                                                                                                                                                                          24                 (1)
  Figures in R million                                           (Audited)    IFRS restated)
                                                                                               Minority shareholders’ loan                                                               (28)                (4)      3.   Property, plant and equipment                                 1               –               –
  Operating activities                                                 414             514                                                                                                (4)                (5)      4.   Straight-lining of operating leases                           (4)             –               –
  Cash generated by operations                                         581             577
  Investment income                                                     49              45
  Changes in working capital
  Taxation paid
                                                                       181
                                                                      (222)
                                                                                       181
                                                                                      (138)
                                                                                                                                                                                    Message to our shareholders
  Cash available from operating activities                             589             665      The directors are pleased to report that the Altech group has again produced satisfactory results for                 Altech Netstar maintained its impressive market position in the stolen vehicle tracking and
  Dividends paid                                                      (175)           (151)     the full year ended 28 February 2006, improving headline earnings per share by 12% to 379 cents.                      recovery (SVR) market. Profit growth has been well ahead of expectations with exceptional cash
                                                                                                Revenue increased by 9% to R6 billion, with operating income of R485 million. Altech’s balance                        generation.
  Investing activities                                                 264          (1 328)
                                                                                                sheet remains strong with a net asset value of 1 721 cents per share and cash of R1,5 billion.
  Financing activities                                                   8             151                                                                                                                            On the back of a buoyant new vehicle market, strong growth in Altech Netstar’s subscriber base
  Net funds generated/(utilised)                                       686            (663)                                                                                                                           continued during the year. The company now manages a subscriber base of over 362 000 vehicles for
  Cash and cash equivalents
                                                                                                OPERATIONAL REVIEWS                                                                                                   SVR services. Altech Netstar’s extensive ground and air recovery teams respond to around
  – at beginning of year                                               812           1 475      Telecommunications division                                                                                           600 incidents per month throughout Southern Africa. Subscriber growth is expected to continue for the
   – at end of year                                                   1 498            812      Wireless Communications                                                                                               foreseeable future, based on current penetration of a growing insured vehicle market in South Africa.
                                                                                                Altech Autopage Cellular (Altech Autopage) remains the largest independent cellular service                           Altech Netstar has retained its unique ability to develop and introduce technologies that enhance
                                                                                                provider in South Africa and has performed well ahead of expectations. The market for cellular                        and improve its services to subscribers. In addition to continuous developments of the Altech
                                                                                                services has continued to evolve, resulting in increasing volumes of post-paid and hybrid (post-                      Netstar system, a new low-cost GSM-based product “Cyber Sleuth”, has been introduced to
      Supplementary information                                                                 paid/pre-paid) consumer connections.                                                                                  provide positioning and SVR capabilities for commercial fleets and vehicles. Altech Netstar’s fleet
                                                                                      2005      High-end connections through corporate and fixed cellular enabled Altech Autopage to maintain                         management system, Vigil, successfully commenced operations during the financial year under
                                                                    2006      (Audited and      the average revenue per user (ARPU) achieved last year. Altech Autopage increased its subscriber                      review. Altech Netstar aims to achieve significant market penetration in this sector of its activities.
  Figures in R million                                           (Audited)    IFRS restated)    base by more than 67 900 net connections for the year. The company’s total subscriber base now
                                                                                                exceeds 700 000.                                                                                                      The Malaysian business is growing steadily with over 32 800 vehicles on the Altech Netstar
  Capital commitments                                                    1              49      Notable key achievements for the year were the signing of five-year agreements for service                            system. Plans are well advanced to establish Altech Netstar in a major African market, as well as
  Depreciation and impairment                                           97              78      provision with both Vodacom and MTN, acknowledging the vital role played by independent                               targeting other international expansion opportunities.
  Net foreign exchange (losses)/gains                                   (5)             14      service providers in the cellular industry in South Africa.                                                           Altech Alcom Matomo exceeded profitability and cash flow targets for the year. The company is
  Capital expenditure                                                  142             108      Sales of electronic pre-paid vouchers continued to perform above expectations, particularly                           fully involved in activities resulting from the award in 2004, of the R500-million Gauteng South
  Contingent liabilities                                                27              27      through ABSA ATM’s and Autopage Direct franchised partners.                                                           African Police Services’ digital Trunked Radio (TETRA) network. Work on the project including high
  Operating lease commitments                                                                   The South African telecommunications market is moving rapidly towards deregulation through a                          site installations is progressing in line with expectations. A number of further tenders has been
  Payable within the next 12 months                                                             number of regulatory initiatives, including mobile number portability (expected in July 2006),                        submitted to various customers in Southern Africa for TETRA systems and prospects are
   – property                                                           35              34      handset subsidies investigation, the Electronic Communications Bill and the award of the second
                                                                                                                                                                                                                      encouraging that these tenders will be successful.
                                                                                                network operator license.
   – plant, equipment and vehicles                                      16              17
                                                                                                Looking forward, Altech Autopage remains focused on further entrenching itself as a broad-based                       Altech Alcom Radio Distributors exceeded its financial targets for the year and continues to
  Payable thereafter:
                                                                                                communications company, providing unique and creative solutions to communication users, both                          distribute leading Motorola two-way radio products to the Southern African market through its
   – property                                                           83              81
                                                                                                in South Africa and internationally.                                                                                  network of authorised dealers.
   – plant, equipment and vehicles                                       1              13




                 The financial results are also available on the internet at www.altech.co.za and the JSE News Service – SENS
ALTECH RESULTS - ENG              4/19/06       2:33 PM        Page 2 (1,1)




           Commentary (continued)
  Multi-Media and Electronics divisions
  Altech UEC Multi-Media (Altech UEC), develops, manufactures
  and deploys innovative and advanced set-top-box (STB) products and
  associated software. Turnaround activities in Altech UEC are complete and
  the company is reaping the benefits, especially as it is now able to
  manufacture competitively at the current strong rand exchange rate.
  Altech UEC reported strong earnings growth and now contributes
  positively to the earnings of the group.
  The acceleration of converging technologies in the multi-media sector
  continues to provide opportunities for specialist companies such as Altech UEC.
  This is demonstrated by the highly-successful launch of the MultiChoice
  dual-view PVR decoder in November 2005 which contributed over
  R70 million of revenue in just one quarter. This product is also attractive to
  offshore pay TV operators and has already resulted in orders emanating
  from Greece and Dubai.
  The strength of the rand supported strong consumer demand for local pay
  television this year which resulted in record quantities of STB units being
  sold to MultiChoice South Africa. Sales were also increased into other
  regions of Africa, including Nigeria, which has shown strong demand over
  the past two years and has resulted in the Altech UEC order book
  exceeding R421 million worldwide at the year end.
  The after-sales service division, Global Decoder Logistics, earned good
  profits during the year under review. Having established a new facility in
  Sydney in 2004, this division has rapidly matured into a centre of
  excellence in Australia and is poised to attract new customers throughout
  the region.
  The deployment of satellite television services in India during the third
  quarter has significantly increased demand for pay television products
  across that country. Through its robust technology, ability to bring
  products to market rapidly and its established presence in India, Altech
  UEC is well- positioned to exploit the strong growth this region is
  experiencing.
  Altech Arrow Altech Distribution (AAD) reported improved results for the
  year, driven by increased margins and supported by further growth in
  revenue from new sales initiatives.
  AAD’s positive trading figures reflect the benefit of past restructuring strategies
  designed to reduce operating costs and improve operational procedures.
  Information Technology division
  Altech NamITech is a leading player in Africa for cellular SIM cards, pre-
  paid vouchers and magnetic stripe bank cards.
  The continued strength of the rand, pricing pressures and management
  issues had a severe adverse impact on the South African operation which
  significantly underperformed against its prior results. As a results of this
  underperformance and the closure of certain operations, goodwill
  impairment of R82 million has been recorded in the current year.
  A re-engineering process and a cost-reduction exercise are under way to
  reposition Altech NamITech as a strong contributor to the earnings of
  the group.
  The impending roll-out of Europay/MasterCard/Visa (EMV) compliant
  smart cards in South Africa will be a major contributor to Altech
  NamITech’s financial success in future, based on existing contracts with a
  number of the major local banks to supply these cards.
  In line with its pan-African strategy, Altech NamITech’s new pre-paid
  cellular voucher manufacturing facility in Lagos, Nigeria, which is now
  profitable and producing more than one million vouchers per day, has
  entrenched the company as a dominant player in that country.
  Altech NamITech has made significant progress in the development of secure
  payment solutions (especially in the banking and public sector segments of its
  business) and this should add to future growth.
  Altech Card Solutions
  The continued migration to the Europay/MasterCard/Visa (EMV) payment
  standard had a positive impact on the results of Altech Card Solutions
  (ACS) for the year. The ongoing deployment of “Electronic Funds Transfer
  at Point Of Sale” (EFTPOS) terminals, as well as banks preparing to issue
  EMV smart cards, has led to substantial investment in infrastructure from
  which ACS has benefited.
  With ongoing personalisation infrastructure upgrades by card issuers and
  outsource bureaus, the DataCard division has again achieved outstanding
  growth for the year. Equipment sales and the resulting maintenance
  agreements will generate annuity income in future.
  The introduction of new payment initiatives throughout Africa creates
  potential for the EFTPOS division.
  Cardtronic had a satisfactory financial year and has completed its
  recapitalisation project. This has enabled Cardtronic to compete more
  effectively in the higher volume business segment. Good future growth is
  expected in the coming year.
  The integration of the switching business, purchased during 2004, is
  complete and switching volume is growing. The business launched a card-
  based gift voucher programme during December 2005 which was a major
  success.
  Altech ISIS recorded exceptional financial and organic growth during the year
  strengthening its position as a supplier of end-to-end operational support
  systems (OSS) solutions in South Africa and Africa. The company employs
  150 highly skilled individuals specialising in the Telecoms OSS sector
ALTECH RESULTS - ENG 4/19/06 2:33 PM Page 2 (1,2)
   Altech ISIS recorded exceptional financial and organic growth during the year
   strengthening its position as a supplier of end-to-end operational support
   systems (OSS) solutions in South Africa and Africa. The company employs
   150 highly skilled individuals, specialising in the Telecoms OSS sector.
   Altech ISIS has further entrenched its position in this market through the
   purchase (subject to the fulfilment of certain conditions precedent) of
   MobiMaster, which owns and develops billing systems. MobiMaster’s billing
   systems are capable of billing pre- and post-paid, voice and data and are
   fully prepared for content billing. This acquisition combined with its
   extensive knowledge of the provision of fraud management and revenue
   assurance solutions and services through its partnership with Hewlett
   Packard bodes well for the future of Altech ISIS.

   CORPORATE FINANCE ACTIVITIES
   During the second half of the year, Altech disposed of its joint controlling
   shareholding in Econet Wireless Global Limited (EWG), a Botswana holding
   company with interests in international cellular network activities. Altech’s
   interest in EWG was acquired in 2004 and the disposal was due to the
   breakdown of the relationship with EWG’s other shareholders. The
   proceeds on this disposal amounted to US$87.5 million (R561 million)
   with a profit of US$17.5 million (R141 million) for Altech, which upon
   consolidation amounted to R129 million.
   As reported above, the Altech ISIS division of Altech Data reached
   agreement on the acquisition of the MobiMaster division of Linedata
   Services in France, subject to the fulfilment of certain conditions precedent.
   Altech has substantial cash resources as well as other resources to fund
   future acquisitions. A number of acquisition opportunities are currently
   under investigation.

   OUTLOOK
   A number of factors are contributing to a confident outlook for real growth
   in the coming year. These include:
   • increased order books and growing annuity revenue at Altech Autopage
      and Altech Netstar;
   • a strong order pipeline at Altech UEC;
   • continued liberalisation and deregulation in the telecoms environment;
   • ongoing acquisition activity; and
   • turnaround expectations at Altech NamITech.
   The above underscore a solid foundation for Altech’s performance over the
   next twelve months.

   DIRECTORATE
   Dr E N Banda was appointed as an independent non-executive director
   to the Altech board on 1 February 2006. He is highly regarded and
   experienced in South Africa with a career that spans banking, business and
   the legal profession.

   DECLARATION OF ORDINARY DIVIDEND NO 63
   Ordinary dividend number 63 of 209 cents (2005:174 cents) per share for
   the year ended 28 February 2006 is declared payable on Monday 5 June
   2006 to ordinary shareholders recorded in the register at the close of
   business on Friday 2 June 2006. The timetable for the payment of the
   dividend is as follows:
   Last day to trade cum dividend                          Friday 26 May 2006
   Trading ex dividend commences                          Monday 29 May 2006
   Record date                                               Friday 2 June 2006
   Payment date                                            Monday 5 June 2006
   Share certificates may not be dematerialised or rematerialised between
   Monday 29 May 2006 and Friday 2 June 2006, both days inclusive.
   The certificated register will be closed for this period.

   FURTHER CAUTIONARY ANNOUNCEMENT
   Further to the cautionary announcement dated 10 March 2006, share-
   holders are advised that Altech continues to be involved in discussions
   which, should they develop, may have a material affect on the price of the
   company’s ordinary shares. Accordingly, shareholders are advised to
   continue to exercise caution when dealing in the company’s ordinary
   shares until a further announcement is made.
   On behalf of the board
   Dr Hilton Davies       Craig Venter            Dr John Carstens
   Non-executive Chairman Chief Executive Officer Chief Financial Officer
   19 April 2006
   Directors:    Dr H K Davies (Chairman)#,
                 C G Venter (Chief Executive Officer),
                 Dr E N Banda#, Dr J E W Carstens,
                 P M O Curle*, M L Leoka#, R Naidoo#,                     HE AL
                 D C Radley#, Dr H A Serebro#,                        F T       TR
                                                                  O
                 R E Venter#, Dr W P Venter#,
                                                                                 O
                                                       A M MBER




                                                                                     N




                 P L Wilmot#
                                                                                     GROUP




                 * British # Non-Executive
                                                          E




   Secretaries: Altech Management
                Services (Pty) Limited

								
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