In a year marked by turbulence in global financial markets, revenue and operating profit declined by 6% to R10,3 billion and 28% to
R1,1 billion respectively. However, Reunert managed to improve its already strong financial position with cash holdings, excluding RC&C Finance, at the end of the period amounting to R1,6 billion reflecting effective management of working capital.

Headline earnings was unchanged at R1,2 billion while normalised earnings declined by 21% to R892 million. The noncash, mark-to-market accounting gain of an option that Reunert holds to sell its 40% interest in the South African operation of Nokia Siemens Networks mainly accounted for the difference.

Reutech had a very good year. Fuelled by exports at favourable exchange rates, revenue was up by 40% to R874 million while operating profit increased by 55% to R212 million.

Our radios, radars and fuses are now supplied to many countries around the globe. The mining surveillance radar, a safety product that we have developed, is being sold or leased to most multinational mining companies in increasing numbers.

Although prospects are good there is a risk that orders may not be received early enough for the full benefit to be realised in the new financial year.

Revenue and operating profit in the Nashua group, comprising Nashua, Nashua Mobile, Nashua Electronics and RC&C Finance declined 1% to R6,4 billion and 27% to R481 million respectively.

Nashua, the office automation business, increased market share in a tough market. The strengthening rand, necessitating price decreases, exerted pressure on revenue and margin.

Nashua Mobile, the cellular service provider business, continued to grow its base of high value customers, although churn increased from 12,8% to 13,6%. Bad debts as a percentage of revenue improved from 1,3% to 1,2%. During the year, three new outlets were opened essentially completing our roll-out of franchised stores.

Nashua Electronics exited the consumer electronics business after more than 40 years. The associated cost was in excess of R60 million. The activities in business systems were retained as was the online shop. We are confident that the restructured business, with estimated annual sales of R450 million, will be profitable and capable of strong growth.

RC&C Finance had a poor year. Bad debts escalated and resulted in significantly reduced earnings. Rates have been adjusted to reflect increased risk. Credit vetting has been tightened, resulting in a steady decline in the book. In the new year this business should be an improved contributor.

Prospects for the Nashua group are closely tied to the prosperity of the consumer. By eliminating non-performing activities, the group is well positioned to benefit from any uptick in the economy.

CBI-electric, our electrical engineering business, had a disappointing year. The low-voltage and energy-cable businesses, with their direct exposure to infrastructure development, experienced volume declines of up to 60%. The result was a slump in revenue to
R3,0 billion and operating profit to R393 million.

Order books remain low but appear to have stabilised. Extensive restructuring was undertaken to size businesses appropriately. We continued our programme of capital expenditure to improve plant efficiencies.

The telecommunications cable joint venture with Altron had a good year. Both revenue and operating profit were up mainly due to increased demand for copper telecommunications cable. Fibre demand was subdued.

The medium-voltage business experienced strong growth, albeit off a low base. Our offering of quality product, coupled to short lead times and attractive pricing, is steadily gaining market share.

CBI-electric's fortunes are linked to a recovery in global commodity prices and a continuation of development of the local infrastructure. We have sufficient capacity to supply what is needed and the ability to react quickly to any change in demand.

Our investment in Nokia Siemens Networks in South Africa suffered a decline in revenue and profit. On a comparable basis, Reunert's attributable before tax earnings from NSN decreased by 31% from R139 million to R97 million. Lack of demand and competitive pressures, which are unlikely to abate, were the cause.

DIRECTORATE

Mr TS Munday was appointed chairman with effect 1 June 2009. We welcome Ms KW Mzondeki and Mr R van Rooyen who have joined the Reunert board on 1 November 2009. Mr KS Fuller and Mr MJ Shaw have reached retirement age and will retire at the forthcoming annual general meeting. Mr SD Jagoe has indicated that he will resign at the next board meeting to pursue his own consulting business overseas. We thank all three of them for their valued contributions and wish them well in the future.

PROSPECTS

Looking forward, it is our view that the economy has stabilised, although we do not expect any meaningful recovery in the short term. Actions taken to adjust to the lower volumes of the past year should have a positive impact on earnings.

The forecast financial information has not been reviewed or reported on by Reunert's auditors.

CASH DIVIDEND

Shareholders may not dematerialise or rematerialise their share certificates between Monday, 18 January 2010 and Friday, 22 January 2010, both days inclusive.

On behalf of the board

Directors: T S Munday (Chairman)*, G Pretorius (Chief Executive), B P Connellan*, K S Fuller*, B P Gallagher, S D Jagoe*,
K J Makwetla*, T J Motsohi*, K W Mzondeki*, G J Oosthuizen, N D Orleyn**, D J Rawlinson, M J Shaw*, Dr J C van der Horst*,
R Van Rooyen*

*Independent non-executive    **Non-executive

Registered office: Lincoln Wood Office Park, 6 – 10 Woodlands Drive, Woodmead, Sandton.
PO Box 784391, Sandton, 2146. Telephone +27 11 517 9000

Transfer secretaries: Computershare Investor Services (Pty) Limited, 70 Marshall Street, Johannesburg, 2001.
P O Box 61051, Marshalltown, 2107

Sponsor: Rand Merchant Bank (A division of FirstRand Bank Limited),

Secretaries' certification: In terms of Section 268 G(d) of the Companies Act, I certify that, to the best of my knowledge and belief, the Company has lodged with the Registrar of Companies for the year ended 30 September 2009 all such returns as are required by a public company in terms of the Companies Act and that all such returns are true, correct and up to date.

J A F Simmonds
For Reunert Management Services Limited
Company Secretaries

Enquiries: Carina de Klerk +27 11 517 9000 or e-mail invest@reunert.co.za