NON FULFILMENT OF CONDITIONS PRECENDENT FOR THE ACQUISITION OF ICHOICES

Johannesburg, 16 April 2008
Shareholders are referred to the iChoices announcement released on SENS on 14 November 2007. The announcement stated that Kelly Group had entered into an agreement with MMC Holdings (Proprietary) Limited and Crestwell Trading 2 (Proprietary) Limited (“the Sellers”) to purchase the entire issued share capital of iChoices Call Centre Outsourcing (Proprietary) Limited (“iChoices”) (“the Acquisition”).

Due to certain factors affecting the business of iChoices, during the past year, it has not been possible to implement the Acquisition as originally envisaged.  After due consideration, and having carefully considered an alternative basis for implementing the Acquisition, the parties have not pursued the fulfilment of the remaining suspensive conditions and have, by mutual agreement, allowed the agreements in respect of the Acquisition to lapse.