Blue Label Telecoms - Reviewed interim results for the half year ended 30 November 2008

Acquisition of Subsidiaries

Shares in the following subsidiaries were acquired in the six month period ended 30 November 2008:

	Effective date of acquisition	% acquired
Blue Label Mexico S.A. de C.V.	18 July 2008	70
Content Connect Australia (Proprietary) Limited	19 August 2008	50,5
Answers Direct Marketing (Proprietary) Limited	1 August 2008	80
Datacel Data Services (Proprietary) Limited*	1 August 2008	81
Celebia Holdings Limited	23 June 2008	100

* Fair valuation of assets is still to be finalised
Details of the total net assets acquired and the resulting goodwill as at acquisition are as follows:

		Total
		R’000
	Total purchase consideration	30 464
	Fair value of net assets acquired	21 672
	Goodwill	8 792

The assets and liabilities acquired through the acquisitions are as follows:

		Acquirer’s
	Provisional	provisional
	fair value	carrying
	at	amount on
	acquistion	acquistion
	date	date
	R’000	R’000
Cash and cash equivalents	31 513	31 513
Property, plant and equipment	161	161
Intangible assets	1 964	1 964
Goodwill	800	800
Receivables	25	25
Borrowings	(3 311)	(3 311)
Payables	(68)	(68)
Provisional fair value of subsidiaries acquired	31 084	31 084
Minority interests	(9 412)
Provisional fair value of net assets acquired	21 672
Cash and cash equivalents in subsidiaries acquired		31 513
Total purchase consideration		(30 464)
Less purchase consideration still due		1 735
Cash inflow on acquisition		2 784