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Growth drivers

1 Infrastructure spend

Eskom rolling 5-year programme – increased to R150 billion – will benefit Powertech’s cable and transformer businesses
Mining industry demand improving – mainly coal and platinum
Building and construction industry expected to maintain overall growth with increasing demand for commercial development
Soccer World Cup projects (upgrading of stadiums, activity in hospitality industry, infrastructure etc.) and Gautrain opportunities
Telkom launches R30 billion capital expenditure programme
Launch of Neotel, second network operator and establishment of state-owned telecoms infrastructure entity, Infraco, offers more opportunities

Liberalisation of telecommunications industry continues
Broadband wireless Wimax licence opportunity for Altech
Altech acquires technology and distribution rights for USA-based CityNet Wireless
VoIP services from ISPs are increasing
Conversion to digital TV for 2010 – increased demand for set top boxes
Converged offer from Altech Autopage Cellular in mobile, data and fixed
Consolidation in local IT market offers opportunities for Bytes
Stronger powers to ICASA through Electronic Communications Act will result in less delaying tactics

Bank spending robust but competitive conditions prevail
EMV Chip Card roll-out scheduled for 3rd quarter of 2007 and will benefit Altech NamITech
Crime is driving the focus towards secure, back-loading ATM’s
Demand for end-to-end IT solutions in terms of terminals, loyalty programmes, transaction routing, settlement files and related MIS will benefit Bytes and Altech
Teradata system applications (data storage) is gaining traction
Group will be following footprint of banks into Africa

Bytes acquires Xclusive Solutions and Vantage Business Systems to become largest UK Xerox concessionaire
Altech NamITech West Africa expands to be regional provider of vouchers, smart cards and payment solutions
Altech Isis France fully operational
Altech Netstar globalises through Malaysia and other emerging market opportunities
Strong performance from Bytes Document Solutions and Bytes Communication Systems in Africa
Growth prospects in India through Altech UEC India – first orders received
Acquisition of Swanib Cables in Namibia
Much improved performance from Powertech Iberian cable operations
Expansion into African mobile broadband and wireless opportunities with CityNet alliance
Group exports grew to over R1 billion and Altron’s target is set at 25% of revenue from exports and foreign operations

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