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• Letter to Shareholders Nov 2001
• 23 June 1999
• 27 Sept 1999
• 3 Nov 1999

Dear Shareholder, It is pleasing to report that Reunert has had a good year increasing headline earnings per share by 25% to 176 cents per share and the dividend payout by 20% to 91 cents. Reunert's strategy of focusing on its core businesses, with the objective of maximising returns to shareholders, has proved successful.

Growth in Circuit Breaker Industries (CBI) and Nashua was particularly strong. Acquisitions enabled CBI to considerably broaden its product range. In the field of low-voltage electrical engineering, this company is now the undisputed leader in South Africa. Exports remain a high priority and, although good progress was achieved during the year, further improvements will be planned in the years ahead.

The acquisition of all the franchisee interests in Nashua Cellular and the subsequent merger with NedTel Cellular has proved to be highly successful.

The expanded business has gained the necessary critical mass to become the biggest independent corporate contract service provider in South Africa's cellular telephony industry. In order to exploit the strong Nashua brand, Nashua NedTel Communications has been renamed Nashua Mobile and is well positioned to benefit from the recent introduction of Cell C, the third cellular telephony network operator.

Nashua itself continues to focus on the office automation business systems market and this has resulted in strong gains in both margin and market share. The ability to leverage off strong brands and a common customer base positions these two independent, but synergistic, businesses, for continuing strong growth.

Our telecommunications interests have enjoyed a particularly good year. Siemens Telecommunications (Sietel) was awarded the contract for the supply to Cell C of its entire infrastructure. Penetration into the markets of a number of African countries continues, further entrenching the dominance of Sietel throughout the continent.

"Reunert's strategy of focusing on its core businesses, with the objective of maximising returns to shareholders has proved successful."

Eskom Enterprises recently announced that Siemens would be its technology partner in the rollout of its national fibre optic communication backbone for South Africa's second fixed-line telecommunications network.

With its stated objective of becoming less dependent on defence, the group has continued transforming itself into a leading South African electronics and low-voltage electrical engineering enterprise. Defence technology and services currently contribute only 8% of profit before interest and taxation, and this trend is expected to continue in future.

Training and development of all staff remains a high priority. The Reunert College continues to provide a bridging year between school and university for historically disadvantaged students, with its curriculum focusing on mathematics, science, English and accounting. Since 1993, this bridging initiative has enabled almost 500 students to undertake tertiary education courses that may otherwise not have been available to them. This strong commitment to developing South Africa's human capital is vital to the future socioeconomic development of both the group and the country.

Reunert is fully committed to the empowerment of historically disadvantaged groups in order for them to participate successfully in South Africa's mainstream economy. To this end a further 20% of Reunert Defence Logistics was sold to Kgorong Investment Holdings. Kgorong now owns 30% of the equity in this successful company.

We remain committed to upholding the principles of good corporate governance. The non-executive directors are each uniquely qualified to contribute to Reunert's growth and governance. Mr Martin Shaw recently joined the board and I welcome him. The board now has more non-executive directors than executive directors. Apart from the audit and remuneration committees, which consist entirely of non-executive directors, greater emphasis is being placed on risk management within the group.

Should the world economy fail to recover quickly from its current deep recession, South Africa is likely to be negatively affected. Signs of recession are already apparent and this could inhibit growth in the local economy.

I am, however, confident that Reunert, with its strong cash resources, is well positioned to take advantage of any growth opportunities that may present themselves. Growth in earnings is expected to continue, although at a lower level than was achieved in the last two financial years.

Our continued success is in no small way dependent on our dedicated staff and management team. I have little doubt that they will, under the outstanding leadership of Gerrit Pretorius, continue to meet the demands of our shareholders as well as they did during 2001. On your behalf I thank them.

I also thank my fellow directors for their support and contribution to the success of the group during the year under review. I remain confident about the future of both Reunert and South Africa and look forward to another year of continuing growth and business optimisation.

Yours sincerely

Derek Cooper
Chairman
Sandton
19 November 2001

PS: I am delighted to inform you that it has just come to my attention that Reunert has acquired all the shares held by Nedcor in Nashua Mobile in a deal which valued the company at R630 million.

Reunert now owns 95% of this company with the remainder held by Metropolitan Life. The transaction is earnings enhancing.

Dear Shareholder You will be aware, from media coverage over the last few weeks, of the dispute between Reunert and a consortium comprising BOE and Altron about their demand for certain sensitive information from Reunert. We would like to update you on the current situation. Brait and the Consortium, at separate times, made proposals for possible offers to acquire the assets and liabilities (not the shares) of Reunert. Because the proposals were not for the shares, the Board of Directors is empowered to evaluate them and make a decision. The acceptance of a proposal would then have been subject to approval by shareholders at a general meeting. The Board is of the view that the proposed prices for the possible offers were far too low – and this was confirmed by a valuation done by an independent merchant bank. Both proposals were therefore rejected and the parties informed that if offers were to be made at the proposed prices they would not be accepted. We are resisting the Consortium’s attempts to gain access to sensitive information, principally for four reasons:

1. Our legal advice is that they have no right to such information.
2. The equivalent price of R10,07 per share (R10,25 less the dividend of 18 cents), as the Consortium indicated it might offer for the assets and liabilities, was rejected by the Board as being too low.
3. A member of the Consortium, Altron, is a direct competitor in almost every field in which Reunert operates. More than 70% of Reunert’s sales are generated in competition with Altron. In our opinion, access by Altron to the information being sought would be extremely damaging and prejudicial to Reunert and its shareholders.
4. Although the Consortium’s possible offer was rejected as far back as 12 April 1999, nothing further has emanated from the Consortium other than the attempt to gain access to the information they are seeking. So, not only is there no offer of any kind from the Consortium, but there is not even an indication of any intention to improve upon what was rejected.

Should a serious offer from anybody be received at a price considered adequate and on acceptable conditions, the Board would give due consideration to such offer and make appropriate recommendation to you, our shareholders. As our half-year results indicated, Reunert is stronger than ever, having emerged from a difficult restructuring and refocusing period. The cash generation and robust growth in earnings per share is already being recognised by the market. The Board has developed a strategy which it is confident will unlock considerable value. This strategy is now being evaluated and fine-tuned with the help of one of South Africa’s foremost merchant banks. As soon as this plan has been evaluated and agreed to by the Board it will be presented to our shareholders for approval. I trust that this letter has clarified the situation and we will continue to keep you informed.

Gerrit Pretorius Chief Executive Reunert Limited	Derek Cooper Chairman Reunert Limited

Dear Shareholder In our letter to you on 23 June 1999 we undertook to keep you informed of our progress in the restructuring of your company. We received a favourable decision from the High Court setting aside the Securities Regulation Panel’s ruling that we should make available to the BOE/Altron consortium information which in our opinion would have been detrimental to shareholders’ interests. Reunert today announced that it is to pay a special dividend of approximately R500 million, equivalent to R2,50 per share. This will be payable to shareholders registered on the books of the company on 15 October 1999. Dividend cheques will be posted on or about 29 October 1999. This decision follows the recently announced sale of OMC, the military vehicle business, as well as the disposal of various other non-core operations. Reunert is now clearly focused into two areas: Electrical Engineering and Electronics. With the proceeds of these sales and further cash generation from existing operations the board considers it appropriate, after taking into consideration future acquisition and operating requirements, to declare a special dividend to shareholders. Reunert is proceeding with restructuring the group and details will be provided after the board meeting on 16 November. We are still confident that the forecast earnings for the current year will be achieved and that the strength of the group will be reflected in these results. Best regards

Gerrit Pretorius Chief Executive Reunert Limited	Derek Cooper Chairman Reunert Limited

Dear Shareholder Reunert has taken a further significant step in the reorganisation and focusing of the group, with the sale of its 50% share of Alstom South Africa to its French parent, Alstom Holdings for R225 million. Alstom is a world leader in the energy and transport infrastructure markets and, in South Africa, is engaged in power generation, transmission, distribution and traction in a joint venture with Reunert. With South African markets opening up to global competition, Alstom Holdings has decided that this structure no longer fits their world strategy of operating through subsidiaries. Reunert has now disposed of all businesses which do not fall within its core competency and now focuses on electronics and low voltage electrical engineering, namely Nashua, Panasonic, Reutech Electronics and Circuit Breaker Industries, which are all wholly owned, and African Cables, ATC, Sietel and RC&C Finance, Reunert’s financial services company, which are partly owned. The board has reassessed the group’s structure in light of its latest disposal and no longer feels that it is value enhancing to divide Reunert into two operating entities. The proceeds from the sale of Alstom will be used to fund organic growth and strategic acquisitions within our focused areas, and Reunert will remain a single, strongly managed and capitalised company. Reunert has reached the end of a process, which was started over two years ago when the company reached the low point of its 110-year existence. It has been a time during which some tough decisions had to be taken on business that did not fit into our long-term strategy. The board and management have to act in the best interests of shareholders. We believe that we have done so and would like to thank you for your support over this time. Yours sincerely

Gerrit Pretorius Chief Executive Reunert Limited	Derek Cooper Chairman Reunert Limited