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22 January 2009

Telkom acquires full control of Multi-Links

Telkom's expansion of its footprint on the African continent took another step forward today with the acquisition of the remaining 25% of Multi-Links, a Nigerian private telecommunications operator.

In May 2007 Telkom acquired 75% of Multi-Links.

Multi-Links has a Universal Access License that allows it to provide fixed, mobile, fixed-wireless, international and data services in one of the fastest-growing telecommunications markets in Africa. It also owns an ISP license.

Multi-Links is Nigeria's pioneer national Private Telecommunications Operator (PTO) and was the first telecommunications operator in Nigeria to introduce Code Division Multiple Access (CDMA) technology, a digital fixed-mobile technology that enables the provision of more efficient and cost-effective wireless solutions.

Our 100% ownership of Multi-Links, therefore, not only meets Telkom's broader investment criteria but also provides us with the opportunity to expand our mobile capability, said Telkom CEO, Reuben September.

Multi-Link's mobile subscriber growth since its 75% acquisition by Telkom nearly two years ago has been impressive. Since September 2007, the company has grown its customer base from 262 431 to more than 1.7 million subscribers as at 30 September 2008. At the same time, Multi-links has effected network and capacity improvements that will bolster its ability to provide quality data products, especially to the corporate market.

September added that the transaction advances Telkom's goal of becoming Africa's leading ICT solutions provider.

We remain focused on pursuing growth by diversifying our revenue streams into African markets with high growth potential," stated September. "With its low penetration and pent up demand for voice and data services, Nigeria is such a market and we have seen Multi-Links make significant progress over the past year. The prospects for the company are strong and by capitalising on Telkom's access to international data connectivity and the quality of such connectivity, Multi-Links is well positioned to service corporate, wholesale and retail customers in Nigeria," said September.

He added that the Multi-Links deal demonstrates Telkom's determination to expand domestically as well as beyond South Africa's borders into areas of growth, healthy returns and value creation for the Company's shareholders.

We are investing in and enhancing our long-term future by accelerating our drive towards becoming the preferred telecommunications provider and partner in Africa as Telkom's expertise allows us to provide the full spectrum of ICT solutions on the continent including voice, mobile, data, video and internet services," stated September.

The value of the 25% purchase from Kenston Investment Ltd is USD130 million, the price having being determined by an independent expert. All conditions precedent have been met.

For further enquiries, please contact:

Pynee Chetty

Senior Specialist: Media Relations

Group Communication

Tel:+27 12 642 1716

Mobile: +27 81 389 7874

Email: chettpr2@telkom.co.za

 OR

Leigh-Ann Francis

Specialist: Media Relations

Group Communication

Tel: +27 12 642 1728

Mobile: +27 81 391 4780

Email: francilm@telkom.co.za

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ABOUT TELKOM:

Telkom is a leading communications services provider in South Africa. We had consolidated operating revenue of R16.8 billion and normalised profit after tax of R1, 683 million for the period ended 30 September 2015. Total assets amounted to R41.9 billion and equity attributable to the owners of Telkom to R23.5 billion as of 30 September 2015. The group generated normalised free cash flow of R1.4 billion for the period ended 30 September 2015.

As of 30 September 2015, we had approximately 3.3 million telephone access lines in service and 1,030,441 ports connected via MSAN access. We offer business, residential and payphone customers a wide range of services and products, including:

  • fixed-line retail voice services using PSTN (Public Switched Telephone Network) lines, including ISDN (Integrated Services Digital Network) lines, and the sale of subscription based value-added voice services and calling plans;
  • fixed-line customer premises equipment rental and sales services both voice and data needs and these include PABX, Computers, Routers, Modems, Telephone handsets and other ancillary equipment;
  • interconnection services, including terminating and transiting traffic from South African mobile operators, as well as from international operators and transiting traffic from mobile to international destinations;
  • fixed-line data services, including domestic and international data transmission services, such as point-to-point leased lines, ADSL (Asymmetrical Digital Subscriber Line) services, packet-based services, managed data networking services and internet access and related information technology services;
  • Data Centre Operations includes e-commerce, application service provider, hosting, data storage, e-mail and security services;
  • W-CDMA (Wideband Code Division Multiple Access), a 3G next generation network, including fixed voice services, data services and nomadic voice services;
  • mobile communication services, including voice services, data services and handset sales through our mobile navbar-brand called Telkom Mobile;
  •  information and communication services including cloud services, infrastructure services, workspace services, global service integration management and hardware and network equipment sales locally, in seven African countries, the UK and Dubai through Business Connexion Group; and
  • other services including directory services, through Trudon (Pty) Ltd, wireless data services, through Swiftnet (Pty) Ltd.

Convergence is one of our key strategic initiatives in building a sustainable future for Telkom.  We will lead the provision of converged services in South Africa in support of our mission statement: Seamlessly connecting people to a better life.