Denel notes the allegations raised by the suspended CEO of Denel Dynamics and has always maintained that it respects the confidentiality of internal disciplinary processes and does not discuss them in public. However, Denel firmly states that allegations raised that the Group CEO and the Chief Restructuring Officer were responsible for the unlawful sale of assets and key intellectual property for much less than its market value were fully investigated by an independent body, and found to be false and without merit.

The company further invited the suspended CEO to participate in processes concerning the other three grievances that he had lodged. He refused to participate, and the company decided not to entertain his claims any further.

Denel and its management team are progressing well with its bold steps of streamlining and refocusing its operations and are fully committed to implement its strategy and turnaround plan which is supported by the shareholder and Government. The focus of this is to build a sustainable business and return Denel to profitability.

Ends

For further information, contact:

Pam Malinda

Cell: +27 (0) 82 686 2198

Tel: +27 (0) 12 671 2970

email: pamm@denel.co.za

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