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DIMENSION DATA

		18.2% Dimension Data Holdings plc (Dimension Data) is a leading global technology company that provides solutions and services that enable businesses to plan, build, support, optimise and manage their IT infrastructures. The company is listed on the London Stock Exchange (LSE) and has a secondary listing on the JSE Limited.

Dimension Data’s expertise lies in the technology areas of networking, security, Data Centres and Storage (DCS), contact centres and Microsoft environments. The company applies its skills in consulting, integration and managed services to create customised client solutions. It is a global leader in the field of simplifying and consolidating IT infrastructures through Internet Protocol (IP) convergence.

With expected revenues in excess of US$3.5 billion in the current financial year and close to 10 000 employees in over 35 countries, Dimension Data has a global footprint that supports highly personalised regional execution, while leveraging the domain experience and depth of a global business.

In December 2002, R&V Technology Holdings Limited (R&V), a wholly owned subsidiary of VenFin, subscribed to a US$100 million seven-year convertible bond issued by Dimension Data. RFS Finance Limited, a wholly owned subsidiary of VenFin, subsequently acquired 93 970 485 shares in the open market, representing a shareholding of 7% in Dimension Data. In April 2006, R&V elected to convert the US$100 million convertible bond into 188 121 978 ordinary Dimension Data shares. On conversion, the additional shares amounted to 12.2% of the enlarged issued share capital of Dimension Data, bringing VenFin’s total equity interest in Dimension Data to 18.2%.

Overview of the six months to 31 March 2007

Dimension Data reported another period of excellent progress in the first half of 2007. Revenue growth was robust at 22% and returns improved significantly, with operating profit up by 50% to US$55 million. Earnings per share doubled to 1.8c. The company’s growth in revenue was fuelled by solid demand and performance across all its lines of business.

In Dimension Data’s most significant line of business, Network Integration (46% of group revenues), revenue growth of 21% was supported by a strong demand for core network upgrades, particularly among the multinational and global accounts.

Strong performances were also reported from the other global lines of business: Converged Communications, Security, Customer Interactive Solutions (CIS), DCS and Microsoft Solutions. The Solutions business now accounts for 32% of revenue, up from 30% in the comparative period, and provides exposure to highgrowth markets where Dimension Data is well positioned to compete. The 64% growth in Converged Communications was driven by continued strong demand for IP Telephony solutions. Security convergence onto the network underpinned a 16% increase in Security revenues and good progress was made in the DCS businesses, where revenues increased by 19%.

Growth of 25% in Dimension Data’s regional lines of business (22% of revenues) was underpinned by an exceptionally strong demand for the group’s pan-African mobile infrastructure services and a good performance from Internet Solutions, following strong growth in its Virtual Private Network offerings, pan- African networking and hosting services.

Dimension Data enjoyed solid growth in both services and product turnover. Momentum in product revenue growth was aided by enhanced product delivery, which remains a key component of its integrated solution offering. Growth in Services revenues accelerated during the period, with an enhanced ability to attach services to product sales and the Global Services Alliance, with Cisco helping to drive growth.

Good double-digit growth was achieved in four of the five regions in which the company operates, with particularly strong growth reported from Africa (48%), Europe (22%) and Australia (18%). Operating margins improved in all regions and a pleasing turnaround was reported from Europe. A slightly stronger gross margin, reflecting firmer product margins and stable service margins, combined with an ongoing focus on costs, improved the operating margin to 3.1% from 2.5% in the prior period.

Good progress was made in reducing the company’s effective tax rate further; down to 29% from 36% in the first half of 2006.

Group cash and cash equivalents totalled US$352 million at the end of the reporting period (2006: US$342 million), reflecting business growth as well as improved working capital management.

BEE

The black economic empowerment equity transaction concluded by Dimension Data’s South African subsidiary in 2004 continues to deliver pleasing results and a further 4.9% was vested for the year to September 2006, which brought the total amount vested to 9.2%.

 

The future

Dimension Data’s strategy of investing in both its lines of business and services is delivering results. The group will continue to invest to ensure that they capture the market opportunity early on and thereafter build returns through scale and efficiency gains as markets move to maturity. The group plans to continue to invest in service offerings, systems and processes to drive operational excellence and standardisation. Whilst the growth strategy remains primarily organic, they will make selective acquisitions to secure future growth from important new markets.

Dimension Data remains ideally positioned to benefit from significant market trends, including the continued adoption of IP-based infrastructure and the implementation of the converged network. There will be a continued focus on driving improved profitability ratios through efficiency and scale benefits, which will be combined with a close focus on the overhead base. Dimension Data remains optimistic about its ability to deliver long-term value to our shareholders.