Faritec gets its bailout

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Faritec rises after near-death experience

New boss is confident of another R6...

Faritec seeks to raise R60m

Profits to be 80-90% higher.

Shoden and Management Consortium to partially underwrite offer.

Shareholders are referred to the previous cautionary announcements (the last of which was dated 3 March 2010) in relation to the fund raising being undertaken by the company and are advised that:

Shoden Data Systems (Pty) Ltd ("Shoden") and certain members of the Faritec (JSE:FRT) management team (the "Management Consortium") have committed to contributing R30 million of fresh equity into the company by partially underwriting a R60 million rights offer, subject to a number of conditions;

these conditions include the implementation of a scheme of arrangement (pursuant to section 311 of the Companies Act) (the "scheme") between Faritec Enterprise Solutions (Pty) Ltd and its creditors, in terms of which the various classes of creditors will be asked to either convert their debt to Faritec equity or compromise their debt. Shoden and other creditors to the value of R25 million have already indicated their willingness to convert debt into equity;

on receipt of sufficient irrevocable undertakings from creditors to support the scheme, Shoden and the Management Consortium have agreed to immediately advance R30 million to Faritec as a bridging loan pending the implementation of the rights offer.

The objective of the scheme and the rights issue is to strengthen the Company`s balance sheet by converting debt to equity and injecting fresh equity to support the completion of the Group`s restructuring. If the scheme and the rights offer are implemented, the Board is of the opinion that Faritec will be well positioned to recover strongly.

The Company will now formally engage with creditors to finalise the terms of the scheme. Although the implementation of a scheme and the rights issue could take approximately 12 weeks, this will be expedited by obtaining irrevocable undertakings from creditors to vote in favour of the scheme. Faritec anticipates being in a position to announce the precise terms of the scheme and the levels of support from creditors within a week of the date of this announcement and shareholders are advised to continue to exercise caution when dealing in their Faritec securities until a further announcement.