Firstrand disappointed as court fails to protect privacy of clients

FirstRand notes today's decision from the Cape Town High Court with regard to the Groups application to prevent Noseweek from publishing the names of certain of our customers.

FirstRand respects the decision of the Court, but is disappointed on behalf of the clients whom the Group was seeking to protect.  FirstRand regrets that it was forced to go to Court to deal with this issue.  Its actions should not be interpreted as an attempt to suppress the rights of the media but to protect our clients rights to privacy and protect them from defamation.

With regards to the various structures mentioned by Noseweek in Court and in its publications, FirstRand confirms that positive legal opinions were obtained at the time the structures were implemented.  Individual customers also obtained their own independent legal opinions.  A positive legal opinion on the so-called "Duisberg structure" was read out in court yesterday.

Loop structures were offered by numerous financial institutions in South Africa.  However on 30th September 2003 the South African Reserve Bank issued Exchange Control Circular D405 to all authorized dealers directing as to how these structures should be dealt with in terms of the amnesty process.  The Group bought this directive to the attention of its clients.  To the best of our knowledge those who believed themselves to be affected unwound their structures in accordance with the directive.