17 September 2014

At the annual general meeting of Datatec Limited (JSE and LSE: DTC), held at 12h00 today, 17 September 2014, votes were registered for 90% of the Company's issued shares. All the ordinary and special resolutions, as proposed in the notice to the annual general meeting, were passed with the requisite majority.

> Click here to view the voting statistics from the AGM (PDF 350kb)

The special resolutions will, where necessary, be lodged for registration with the Companies and Intellectual Property Commission in due course.

The Board of Directors of Datatec (the 'Board') wishes to inform shareholders of its resolution to henceforth replace the cash distribution by way of capital reduction with a dividend to be declared from distributable reserves (the 'Dividend'). The Board has evaluated the effects on the Company and shareholders and come to the conclusion to preserve contributed tax capital by changing to declaration of Dividends in future. The Board has further resolved to amend the Dividend payment mechanism by the introduction of a bonus share issue of new, fully paid, ordinary Datatec shares ('New Shares') in proportion to shareholders' shareholding in Datatec (the 'Capitalisation Share Issue'). Shareholders will be entitled, in respect of all or part of their shareholding, to elect to receive a cash dividend alternative in lieu of all or part of the New Shares to which they would have been entitled ("Cash Dividend Alternative"). The rationale for the Capitalisation Share Issue is to afford shareholders the opportunity to increase their shareholding in Datatec and retain the Company's flexibility on liquidity management. The Dividend, Capitalisation Share Issue and the Cash Dividend Alternative may have tax implications for shareholders.

The Board wishes to reiterate that the Group's dividend policy of paying an annual dividend, which will provide cover of at least three times relative to underlying earnings, remains unchanged.

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