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Standard and Poor's Upgrades Telkom SA Limited's Rating

Standard and Poor's yesterday upgraded Telkom's foreign currency long-term corporate credit rating to BBB from BBB-, with a stable outlook. The upgrade reflects Telkom's sustained strong cash generation, materially reduced leverage, conservative financial policy, and improved operating performance.

Standard and Poor's believes to find increasing competition manageable in the near term given its market dominance and current exposure to the mobile and value added data service providers.

Standard and Poor's expects Telkom's focus on continued operating efficiencies, sustained cash generation, and conservative balance sheet management to be sufficient to mitigate the risks associated with the developing regulatory and competitive environment.

Standard and Poor's does not factor any South African Government's support into Telkom's rating.

Debt affected by the review is the EUR 500 million, 7.125% Eurobonds due on 12 April 2005.

Johannesburg
17 November 2004
Special note regarding forward-looking statements