Media Release: 17 January 2002

In a Media release by the Insider Trading Directorate on 30 October 2001 it was reported that an insider trading investigation into certain transactions in the shares of Leisurenet Limited would be referred for legal action. The Insider Trading Act empowers the FSB to issue a civil summons against alleged offenders for up to three times the profit gained, or the losses avoided as a result of insider trading.

Because the remedy provided for in the Insider Trading Act is a civil action, the Act provides that the case may be settled like any other civil case. The Directorate now reports that it has accepted an offer of settlement from Mr M Y Kajee, who has agreed to pay an amount of R145 800 to the Directorate.

The settlement relates to share transactions conducted by Mr Kajee for his own account and for the account of Sekunjalo Investments Limited in his capacity as a director thereof.

As a result of the settlement, the FSB will not proceed with the issuing of a civil summons against Mr Kajee. The settlement is entered into on the basis that Mr Kajee admits liability, without admitting guilt to a criminal offence.

The FSB will, in due course publish advertisements inviting claims from persons that purchased shares in Leisurenet Limited on 6 October 2000.

The Insider Trading Act, 135 of 1998 provides for two different legal remedies. Firstly, the Directorate is empowered to institute civil action against individuals for up to four times the profit gained, or the losses avoided as a result of insider trading. The Act also empowers the Directorate to withdraw, abandon, compromise or settle such cases. This is the process that has been followed in the present matter, as well as the other settlements entered into in the past.

Secondly, the Act provides for a criminal prosecution in appropriate cases. The instigation of criminal proceedings is the prerogative of the Director of Public Prosecutions. It should be appreciated that the onus of proof in civil cases is “on a balance of probabilities”, whilst the onus of proof in criminal cases is ”beyond reasonable doubt”.

Financial Services Board

Mr Rob Barrow P O Box 35655

Chairperson: Insider Trading Directorate Menlo Park 0102

Tel: 012 428-8108

Office hours: 7:45 - 16:30