NCR matter update Lewis Group Limited Registration number 2004/009817/06 JSE share code: LEW ISIN: ZAE00058236 With regard to the matter between the National Credit Regulator and Lewis Stores (Pty) Ltd in relation to the issues of Club fees and Extended warranties. Shareholders are referred to the announcements released on SENS of 5 June 2017 and the 30th of April 2018 regarding the favourable judgment for Lewis by the National Consumer Tribunal (NCT) in the matter between the National Credit Regulator ("NCR") and Lewis Stores (Pty) Ltd ("Lewis"), which the NCR initiated in 2016 in relation to the issues of club fees and extended warranties. In a majority judgment, the NCT found that: • The National Credit Act ("Act") does not prevent credit providers from offering the services of a club to consumers, provided these services are not part of the "cost of credit". It was found that the club fees charged by Lewis do not form part of the cost of credit of any credit agreement between Lewis and its customers; • The Act provides that Lewis may include the cost of an extended warranty as part of its fees and charges in its credit agreements with consumers and does not prescribe the terms and conditions of the extended warranty offered by Lewis to its customers. On 28 June 2017, the NCR filed a notice of appeal to the ruling in the High Court of South Africa (Gauteng Division) and on 30 April 2018, the High Court handed down judgment in Lewis' favour with regard to the appeal by the NCR. The matter was dismissed with costs against the NCR. Following the dismissal, the NCR petitioned the Supreme Court of Appeal (“SCA”) for leave to appeal the matter. Special leave to appeal has been granted by the SCA. The NCR now has one month within which to lodge a notice of appeal. A copy of the court order can be requested from Ms Diane Rafferty by email on diane.rafferty@lewisgroup.co.za. Cape Town 02 August 2018 Sponsor: UBS South Africa Proprietary Limited Date: 02/08/2018 01:22:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.