PGFP PSGPSG/PGFP - PSG Group Limited/PSG Financial Services Limited - UpdateAnnouncement regarding the introduction of Dividends TaxPSG Group LimitedIncorporated in the Republic of South AfricaRegistration number: 1970/008484/06JSE share code: PSGISIN number: ZAE000013017PSG Financial Services Limited(Incorporated in the Republic of South Africa)Registration number: 1919/000478/06JSE share code: PGFPISIN number: ZAE000096079("PSG" or "the Company")UPDATE ANNOUNCEMENT REGARDING THE INTRODUCTION OF DIVIDENDS TAXShareholders in PSG's cumulative, non-redeemable, non-participating preferenceshares ("PSG Preference Shares") are referred to the SENS announcement dated 25January 2012. In accordance with the PSG Preference Share Terms, the Companywill adjust the Dividend Rate in the event that an amendment to the Income TaxAct results in both a cost saving to the Company and the Preference Dividendsbeing taxable in the hands of the PSG Preference Shareholders. Such adjustmentwill, however, be limited to the extent that the Company incurs less cost inservicing the PSG Preference Shares.Shareholders are hereby advised that the PSG board of directors have resolvedthat the PSG Preference Shares Dividend Rate be increased from 75% to 83.33% ofthe prime interest rate with effect from 1 April 2012, being an increase of11.11%, and which was calculated in terms of the formula as per the announcementdated 25 January 2012 when the widely anticipated Dividends Tax rate was 10%.PSG believes that the increase in the PSG Preference Shares Dividend Rate isfair, albeit that the aforementioned increase is marginally more than the 10%STC saving obtained by the Company.Shareholders should note that in terms of the relevant PSG Preference ShareTerms, should there in future be any changes to Tax Legislation which result inadditional tax being levied on dividends received by the PSG PreferenceShareholders, there will be no obligation on the Company to adjust the PSGPreference Shares Dividend Rate, unless such changes to Tax Legislationsimultaneously result in a cost saving to the Company in servicing such shares.Stellenbosch4 April 2012SponsorPSG CapitalDate: 04/04/2012 17:06:38 Produced by the JSE SENS Department.The SENS service is an information dissemination service administered by theJSE Limited ('JSE'). The JSE does not, whether expressly, tacitly orimplicitly, represent, warrant or in any way guarantee the truth, accuracy orcompleteness of the information published on SENS. The JSE, their officers,employees and agents accept no liability for (or in respect of) any direct,indirect, incidental or consequential loss or damage of any kind or nature,howsoever arising, from the use of SENS or the use of, or reliance on,information disseminated through SENS.