Datatec announces disposal of 76% interest in UUNET SA to WorldCom INC

Johannesburg, 14 Nov 2000

Datatec today announced that agreement has been reached in principle for the disposal of its 76% interest in UUNET SA (Proprietary) Limited to WorldCom Inc.

Datatec further advised shareholders to exercise caution when dealing in their shares because the transaction is subject to the finalisation of formal agreements and the approval of the South African Reserve Bank, the South African Competition Commission and other relevant regulatory bodies.

Datatec`s board representative on the UUNET SA board, Mendel Karpul, says the agreement represents a major step forward as the provider of corporate network and Internet services positions itself for telecommunications deregulation.

"In our interim results announcement last week, Datatec announced its intention to list UUNET SA and indicated that the business may be sold at some point in the future. I am pleased to say that we have reached a breakthrough in our protracted negotiations with WorldCom and are now in a position to announce the sale," says Karpul.

Jens Montanana, Executive Chairman of Datatec says: "We have indicated during the past two reporting periods that we intended to sell or list our stake in UUNET SA so as to realize the full value for our shareholders of this business.

"While it has taken a long period of negotiation to come to fruition, the resolution of this deal at this time will be equally good for UUNET SA and Datatec. On the one hand it will wholly align the business with WorldCom Inc, the global parent company for which Internet Service Provision is a core competence. On the other hand, it will contribute directly to streamlining Datatec`s globally focused networking distribution and e-services operations and eliminate the Group`s net borrowings, providing us with cash resources to pursue and settle acquisitions."

"The sale of UUNET SA should be seen as the first step in our plan to allow the full value of every operating entity in the Group to be reflected through its listing, sale or realignment. We look forward to the next step in our plan - the forthcoming Westcon Group listing."

Datatec

Datatec Ltd, South Africa`s most global company, is a rapidly expanding global networking and e-services group listed on the JSE. At group level Datatec is an active technology holding company with a core competence in the timely identification, acquisition and integration of high-tech businesses and technologies in the global networking, Internet and e-business spaces. Datatec`s divisions, subsidiaries and associate companies encompass the worldwide provision of advanced networking products to the channel as well as a range of Internet and e-business services and solutions. The company employs more than 4000 people around the world, has operations on six continents and has just achieved revenues of over R9.5bn for the first half of their 2001 financial year. International operations now contribute in excess of 94% to both the group`s revenues and profits.

For more information please see our web site at www.datatec.co.za

UUNET SA

The principle that guides the day-to-day running of UUNET SA is simply stated. As one of the leading corporate network service providers in Southern Africa its goal is to provide its customers with the most reliable, best supported and most cost-effective network service possible, both nationally and internationally. Over the years the business has developed technology that allows it to offer its customers the highest levels of networking manageability, scalability and control. The flexibility of their systems enables their highly skilled and experienced personnel to configure custom-networking solutions quickly and efficiently. UUNET SA is a joint equity partnership between Datatec Ltd. and WorldCom Inc, a global leader in Internet communication solutions offering a comprehensive range of Internet services to business customers worldwide. UUNET SA`s ability to draw on the extensive knowledge and experience of both of its parent companies, coupled with its major investments in the latest technology, enables it to give its customers networking connectivity that rivals the best available anywhere in the world. O:Nov15POUUNET SA Press Release.doc