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Renewal of cautionary announcement

Shareholders are referred to the cautionary announcements dated 14 October 2011, 21 November 2011, 12 December 2011 and 27 January 2012 regarding a potential strategic venture ("Potential Strategic Venture") between Telkom and KT Corporation (collectively "the Companies"). On 27 January 2012 shareholders were advised that the investigation by the Companies into the areas of mutual strategic and business cooperation and envisaged benefits of the Potential Strategic Venture ("Diagnostic Review") was well progressed.

Shareholders are hereby advised that the Diagnostic Review has now been substantially completed. The Companies are cooperating to harmonise their respective findings and agree the terms of the Potential Strategic Venture. Discussions continue to be positive and collaborative with both Companies seeking to conclude a mutually beneficial transaction as soon as possible. As shareholders were previously advised, once the Diagnostic Review has been finalised and the terms of the Proposed Strategic Venture agreed, the Companies will present the proposed transaction to their respective boards of directors for approval before finalising the transaction agreements, engaging with key stakeholders and presenting the terms of the Proposed Strategic Venture to Telkom shareholders for approval.

Shareholders are once again advised that whilst discussions regarding the Potential Strategic Venture are ongoing, there is still no certainty that a formal transaction will be proposed or concluded. Accordingly, shareholders are advised to continue exercising caution when trading in the Company's securities until a further announcement is made.

09 March 2012

Lead financial advisor and transaction sponsor to Telkom
Deutsche Bank
UBS South Africa (Pty) Ltd