Distribution of Circular to Shareholders

The announcement

Distribution of Circular to Shareholders

Datatec Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1994/005004/06)
ISIN: ZAE000017745
Share Code: JSE: DTC
            OTCQX: DTTLF
("Datatec" or "the Company")

DISTRIBUTION OF CIRCULAR TO SHAREHOLDERS

Shareholders of Datatec (“Shareholders”) are referred to the announcement regarding the Company’s
unaudited interim financial results for the period ended 31 August 2026 and the declaration of the cash dividend
with a scrip distribution alternative released on the Stock Exchange News Service (“SENS”) of the JSE Limited
(“JSE”) on Thursday, 29 October 2026, in terms of which the board of directors of the Company (“Board”)
notified Shareholders that it had resolved to declare a cash dividend of 250 ZAR cents (“Cash Dividend”) per
Datatec ordinary share (“Datatec Ordinary Shares”) held on the Record Date, being Friday, 4 December
2026 (“Record Date”). Shareholders were advised that they would be entitled to elect to receive a scrip
distribution of new, fully paid Datatec Ordinary Shares in proportion to their ordinary shareholding in Datatec
on the Record Date (“Scrip Distribution” or “Scrip Distribution Alternative”).

Terms of the Cash Dividend and the Scrip Distribution Alternative

Shareholders will be entitled to receive the Cash Dividend of 250 ZAR cents per Datatec Ordinary Share in
respect of their shareholding as at the close of trading on the JSE on the Record Date, in proportion to their
ordinary shareholding in Datatec and to the extent that such Shareholders have not elected to receive the
Scrip Distribution Alternative in respect of all or a part of their shareholding.

Shareholders will, however, be entitled to elect to receive a Scrip Distribution of new, fully paid Datatec
Ordinary Shares in respect of their shareholding in Datatec as at the Record Date, in respect of all or part of
their ordinary shareholding, instead of the Cash Dividend.

The number of Scrip Distribution shares to which each of the Shareholders will become entitled pursuant to
the Scrip Distribution (subject to their election thereto) will be determined by reference to such Shareholder's
ordinary shareholding in Datatec (at the close of trade on the JSE on the Record Date) in relation to the ratio
that 250 ZAR cents bears to the volume weighted average traded price (“VWAP”) of a Datatec Ordinary Share
traded on the JSE during the 30-day trading period ending on Monday, 23 November 2026, less the amount
of the Cash Dividend, provided that, where the application of this ratio gives rise to a fraction of an ordinary
share, rounding principles will be applied.

Details of the ratio will be announced on SENS in accordance with the timetable below.

Fractions

Where a Shareholder's entitlement to new Datatec Ordinary Shares calculated in accordance with the above
formula gives rise to a fraction of a new ordinary share, such fraction of a new ordinary share will be rounded
down to the nearest whole number, resulting in allocations of whole ordinary shares and a cash payment for
the fraction. The applicable cash payment will be determined with reference to the VWAP of a Datatec
Ordinary Share traded on the JSE on Wednesday, 2 December 2026, (being the day on which Datatec
Ordinary Shares begin trading "ex” the entitlement to receive the Cash Dividend or the Scrip Distribution
Alternative), discounted by 10%.

As at Friday, 30 October 2026, the total number of Datatec Ordinary Shares in issue was 337 576 428 of which
31 677 were held by the Company as treasury shares. Datatec's South African income tax reference number
is 9999/493/71/2.

Tax Implications

The Cash Dividend is likely to have tax implications for both resident and non-resident Shareholders.
Shareholders are therefore encouraged to consult their professional tax advisers, should they be in any doubt
as to the appropriate action to take. In terms of the Income Tax Act 58 of 1962 (“the Income Tax Act”), the
Cash Dividend will, unless exempt, be subject to Dividend Withholding Tax (“DWT”).

South African resident Shareholders that are liable for DWT will be subject to DWT at a rate of 20% of the
Cash Dividend and this amount will be withheld from the Cash Dividend with the result that they will receive a
net amount of 200 ZAR cents per share. Non-resident Shareholders may be subject to DWT at a rate of less
than 20%, depending on the applicability of any Double Tax Agreement between South Africa and their country
of tax residence.

The Scrip Distribution Alternative and cash paid for a fraction of a Datatec Ordinary Share will not be subject
to DWT in terms of the Income Tax Act. Recipients of the fractional amount may be subject to income tax or
capital gains tax, depending on their particular circumstances.

Distribution of Circular

The distribution of the circular referred to below, and the rights to receive the Scrip Distribution shares in
jurisdictions other than the Republic of South Africa, may be restricted by law and any failure to comply with
these restrictions may constitute a violation of the securities laws of such jurisdictions. Accordingly,
Shareholders will not be entitled to receive the Scrip Distribution shares, directly or indirectly, in those
jurisdictions and shall be deemed not to have elected the Scrip Distribution Alternative. Such non-resident
Shareholders should inform themselves about and observe any applicable legal requirements in such
jurisdictions. It is the responsibility of non-resident shareholders to satisfy themselves as to the full observance
of the laws and regulatory requirements of the relevant jurisdictions in respect of the Scrip Distribution
Alternative, including the obtaining of any governmental, exchange control or other consents or the making of
any filing which may be required, compliance with other necessary formalities and payment of any issue,
transfer or other taxes or other requisite payments due in such jurisdictions. Shareholders who have any doubts
as to their position, including, without limitation, their tax status, should consult an appropriate adviser in the
relevant jurisdictions without delay.

The Company has today, Thursday, 5 November 2026, distributed a circular (including a Form of Election
(grey) for certificated Shareholders) to Shareholders, detailing the terms of the Cash Dividend and the Scrip
Distribution Alternative ("Circular").

The      Circular  is   also     available,  in    English   only,   on     the  Company’s       website
https://www.datatec.com/circulars.php and during normal business hours at the Company's registered office
15th Floor, The Leonardo, 75 Maude Street, Sandown, 2196, Johannesburg, South Africa.

The salient dates pertaining to the Cash Dividend and the Scrip Distribution Alternative, also contained in the
Circular, are set out below:

 EVENT                                                                                                        2026

 Record Date for Shareholders to be registered in the Company’s securities register in
 order to be entitled to receive this Circular                                                   Friday, 30 October

 Distribution of Circular announced on SENS on                                                 Thursday, 5 November

 Circular and Form of Election (grey) distributed on                                           Thursday, 5 November

 Finalisation announcement released on SENS in respect of the ratio applicable to the
 Scrip Distribution Alternative, based on the 30-day VWAP “ex” the Cash Dividend
 ending on Monday, 23 November 2026, by 11h00 on                                               Tuesday, 24 November

 Last day to trade in order to be eligible for the Cash Dividend and the Scrip Distribution
 Alternative                                                                                    Tuesday, 1 December

 Datatec Ordinary Shares trade “ex” the Cash Dividend and the Scrip Distribution
 Alternative on                                                                               Wednesday, 2 December

 Listing and trading of maximum possible number of Shares on the JSE in terms of the
 Scrip Distribution Alternative from the commencement of trading on                           Wednesday, 2 December

 Announcement released on SENS in respect of the cash payment applicable to
 fractional entitlements, based on the VWAP of a Datatec Ordinary Share traded on
 the JSE on Wednesday, 2 December 2026, discounted by 10%, by 11h00 on                        Thursday, 3 December

 Last day to elect to receive the Scrip Distribution Alternative instead of the Cash
 Dividend, Form of Election (grey) to reach the Transfer Secretaries by 12h00 noon on           Friday, 4 December

 Record Date in respect of the Cash Dividend and the Scrip Distribution Alternative             Friday, 4 December

 Cash Dividend payments made, and CSDP/broker accounts credited/updated with
 Scrip Distribution Shares on                                                                   Monday, 7 December

 Announcement relating to the results of the Cash Dividend and the Scrip Distribution
 Alternative released on SENS on                                                                Monday, 7 December

 JSE listing of Datatec Ordinary Shares in respect of the Scrip Distribution Alternative
 adjusted to reflect the actual number of Datatec Ordinary Shares issued in terms of
 the Scrip Distribution Alternative at the commencement of business on or about                Tuesday, 8 December

All times provided in the Circular and as disclosed above are South African local times. The above dates and
times are subject to change. Any material change will be announced on SENS.

Share certificates may not be dematerialised or rematerialised between Wednesday, 2 December 2026 and
Friday, 4 December 2026, both days inclusive. If Datatec maintains a certificated register, then the register will
be closed from Wednesday, 2 December 2026 to Friday, 4 December 2026, both days inclusive.

Application to the Financial Surveillance Department of the South African Reserve Bank for the payment of
the Cash Dividend and the Scrip Distribution Alternative has been made and an announcement regarding the
approval will be made on SENS.

Johannesburg
Thursday, 5 November 2026

Sponsor
Pallidus Exchange Services Proprietary Limited

Legal Advisors
Bowmans
Date: 05/11/2026 02:00:00
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