1. Sentech Presentation to the Portfolio Committee on Communications 2 November 2004

2. Sentech team Dr Sebiletso Mokone-Matabane Gladwin Marumo AK Mohamed Johan Raath Dingane Dube Matime Nchabaleng Thabo Komane Marc D’Oliveira

3. Sentech Highlights Broadcasting International Business Multimedia

4. Spreading the footprint Sentech’s broadcasting signal distribution network remains a valuable national asset Very high service levels 5 new television transmitters (SABC 1 & 2) –Cala4 April 03 –Tolwe16 May 03 –Straalhoek25 May 03 –Hectorspruit26 March 04 –Sterkspruit26 March 04 Sentech installs transmitters on customer request.

5. Regional Broadcasting Sentech ready to support regional television

8. Towards digitisation Test television transmissions in Johannesburg successful Test radio transmission in Pretoria successful Plans ready (spectrum utilisation) Multiple sources for decoders (set-top-boxes) achieved. Local manufacture of set top boxes –UEC already locally manufactured –Korean manufacturer ready to start a factory here. South Africa will pay the best possible prices for the units.

9. International business objectives achieved Carrying international traffic for the mobile operators –Low margin, high volume business Developing business relationships in a number of African countries –Loveworld and Spirit Word African channels to over 500,000 viewers –94 TV Transmitters installed for Nigerian Television Authority NEPAD –NEPAD channel operational –Trained broadcasting technicians and engineers from Botswana, Kenya, Lesotho, Namibia, Nigeria, Swaziland and Tanzania Taking active role in East African Submarine Cable initiative

10. Multimedia business objectives achieved My Wireless launched in three regions Connectivity partner for Gauteng OnLine Increased teleradiology connectivity for Eastern Cape First phase of MyWireless completed –Deployment of a leading-edge technology –Ongoing system and network improvements

11. Multimedia milestones Gauteng OnLine –Phase 1/2 1100 schools –Computer laboratory per school –Sentech is connectivity provider as well as long- term strategic partner –Sentech provides email addresses to each learner Sentech committed to ensuring that every Province is able to bridge the digital divide

12. Multimedia milestones Teleradiology successes still continuing Sentech provides the connectivity between the radiologists in the Clinix hospital in Dobsonville and the following hospitals in the Eastern Cape –Frontier –SS Guido –Cecile Makiwane –Keiskamma Patients Xrays diagnosed in real-time Sentech ready to increase the coverage at the request of the Provincial DOH’s.

13. Multimedia Milestones Sentech is the primary connectivity provider for Mindset –Carrying educational content to teachers and learners –Strategic relationship will continue as part of Sentech’s commitment to being the delivery partner for education Sentech is the primary connectivity provider for Mindset for health –Sentech provides the delivery mechanisms for the health channel

14. Multimedia Milestones Working with the USA to bridge the digital divide at schools and through community centres Still providing the fastest Email in Gauteng to Siyabonga telecentre in Orange Farm

15. The year ahead Grow the Multimedia business Prepare the company for digitisation Enhance broadcasting Continue as the State’s delivery partner –Education, Health and e-Government

16. IP Decoder 3G modem 3G Mobile VSAT Other Pt to M-Pt Applications Access DVB Decoder / DAB Decoder DVB PCI Card Video / Audio & Enhanced Services Video &IP Streaming GSM & DVB-H / DAB Video & Audio streaming Video & Audio streaming High Speed Internet Internet & VoIP Internet TV & Radio Distribution VoIP (voice) Gateway Video Backhaul Multicast IP Content Streaming Application Services DVB Platform TDMA / Docsis High Speed Internet WiFI High Speed Internet High Speed Internet Sentech Core Networks NSN Core Sentech’s Integrated Platform Transport

17. Sentech and Convergence Sentech welcomes the Ministers determination of 3 September 2004 –Some changes to Act required to turn restrictions into enablers. –VANS should not provide own facilities or provide switched voice (total deregulation) –Review Sentech licence conditions –Review position of PTN’s eg SITA Sentech is the first fully converged communication company in South Africa Sentech needs unrestricted voice. Sentech will be seamlessly carrying and integrating voice, data, image and delivering solutions to South Africa

18. Job Creation and Poverty Alleviation Sentech has fully restructured to embrace a converged future –Training –Re-skilling –Recruiting Sentech is not retrenching to reskill –Building the skills of our people –Employment equity focus Sentech School of Technology –Building Sentech skills –Building Africa’s skills

19. ISSET-SETA Signed agreement with ISSET-SETA 48 learners to start January 2005 85% African/Coloured/Indian 60% Female 4% People with disabilities

20. My Wireless brings Real Empowerment Opportunities. Network roll-out –Site acquisition –Site/network build –BEE paramount –Job creation

21. The Marketing Empowerment Opportunities Sentech expects to directly sell about 20% of services 80% will be through channel partners –Value Added Partners –Solution partners –Value Added Resellers Major BEE opportunities –Already involved with BEE companies –Lasting and significant job creation in ICT –Grow the cake through empowerment

22. Cash Flows for the 2004 Financial Year Cash utilised in operation-R 20 Mil –Cash generated by operations R34 Mil –Net finance costs -R54 Mil Cash utilised in investing activities-R148 Mil –Assets acquired -R94 Mil –Intangible asset acquired -R50 Mil Cash generated from financing activitiesR156 Mil –Interest bearing borrowingsR106 Mil –Non interest bearing borrowings R 50 Mil Net cash movement-R 12 Mil

23. Financial highlights

24. Thank you