Acquisition of Gateway

Vodacom acquired Gateway on 30 December 2008 for an enterprise value of US$675 million (R6 406 million)[1] plus a make whole payment in relation to Gateway's high yield bond of approximately US$26.9 million (R237 million)[2]. Gateway employs approximately 350 employees in 17 countries throughout Africa and Europe. For the year ended 31 December 2007, Gateway's revenue was US$257 million (R2 439 million)[3].

Gateway is Africa's largest independent provider of interconnection services via satellite and terrestrial network infrastructure for both African and international telecommunications companies. Gateway also provides an extensive range of high quality, end-to-end connectivity solutions to multinational corporations operating across Africa.

The acquisition of Gateway is in line with Vodacom's growth strategy and offers significant synergy potential and multiple strategic benefits including:

		accelerating the Group's international expansion by broadening its international presence in key markets throughout Africa, especially Nigeria;
		creating a platform for future expansion and positioning the Group as partner of choice for multinational customers and international telecommunications providers seeking African connectivity; and
		strengthening of the total communications strategy by complementing the Group's business services strategy in South Africa and allowing roll-out of existing products and services, in addition to new offerings, across the African continent and enabling the marketing of converged fixed and mobile offerings across Africa to Gateway's blue chip customer base.

1. Translated using a convenience rate at R9.49/US$1 at 30 December 2008.
2. Translated using a convenience rate at R9.49/US$ at 30 December 2008.
3. Translated using a convenience rate at R9.49/US$1 at 30 December 2008.