Altech, the JSE listed R3 billion electronics giant, has announced the sale of its 50% shareholding in African Defence Systems (Pty)Ltd (ADS) to Thomson-CSF, the French-based leader in defence electronics.

The multi million rand deal for the change of ownership took place on February 19th 1999, and gives Thomson-CSF sole ownership of ADS following their initial 50% equity purchase in March 1998.

Craig Venter, Chief Executive Officer of the Altech Group confirmed that "the sale of Altech's equity in ADS was in line with the local and international decline in defence budgets and the related consolidated process of the industry". He said "the decision to exit the business was also due to ADS no longer forming part of Altech''s core business activities and future strategic direction". Mr Venter emphasised that Altech's chosen strategic direction would enable the group to continue its focus on globalisation of its electronic, telecommunications and information technology initiatives.

Pierre Moynot, Chief Executive of ADS said "Thomson-CSF is excited about the deal and believe that it will provide ADS with the ability to grow in its chosen field within the defence electronics environment". He added that Thomson-CSF reaffirms its strategic intention to have Black Empowerment Groups as co-shareholders of ADS .

Issued by

Shauneen Beukes Altech Public Relations Manager
Tel (011) 804-2220
Fax. (011) 802-8462
Cell 083 227 4057
E-Mail sbeukes@altech.altron.co.za

Further Information

Colyn Levin Altech Executive Commercial
Tel (011) 804-2220
Fax (011) 802-8462
Cell 082 891 3168

Pierre Moynot Chief Executive ADS
Tel (011) 313-9000
Fax (011) 802-8462
Cell 083 455 2602

With acknowledgements to Altech News.