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AEL: ALLIED ELECTRONICS CORPORATION LIMITED - Cash payment arising from fractional entitlements applicable to the Bytes Technology Group plc convertible notes Cash payment arising from fractional entitlements applicable to the Bytes Technology Group plc convertible notes ALLIED ELECTRONICS CORPORATION LIMITED (Incorporated in the Republic of South Africa) (Registration number: 1947/024583/06) Share code: AEL ISIN: ZAE000191342 ("Altron" or "the Company") NOT FOR DISTRIBUTION, PUBLICATION OR RELEASE, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN, INTO OR WITHIN THE UNITED STATES OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION, PUBLICATION OR RELEASE OF THIS ANNOUNCEMENT WOULD BE UNLAWFUL. CASH PAYMENT ARISING FROM FRACTIONAL ENTITLEMENTS APPLICABLE TO THE BYTES TECHNOLOGY GROUP PLC CONVERTIBLE NOTES Altron Shareholders are referred to the Circular to Altron Shareholders, distributed on Tuesday, 3 November 2020 containing the details of the demerger of Bytes Technology Group Limited (now named Bytes Technology Limited) from Altron, consisting of the Distribution, the Offer, the Disposal, the Redemption, the Conversion ("Demerger") and the admission of the entire issued and to be issued ordinary shares of Bytes Technology Group plc to the premium listing segment of the Official List of the FCA and to trading on the London Stock Exchange plc ("LSE")'s main market for listed securities and the Main Board of the JSE Limited ("JSE") by way of secondary inward listing (together "Admission"). Capitalised terms not defined herein have the same meaning given to them in the Circular. Following Altron Shareholders´ approval of the Demerger at the General Meeting held on 1 December 2020, and the issue of a Compliance Certificate for the Distribution by the TRP, the Distribution will be effected on the settlement date for the Distribution, being Thursday, 10 December 2020. Altron Ordinary Shareholders will be entitled to the beneficial interest in 0.5 Convertible Notes for every 1 Altron Ordinary Share held on the Record Date ("the Entitlement Ratio") for the Distribution, being Wednesday, 9 December 2020. The application of the Entitlement Ratio in respect of Convertible Notes is subject to rounding down of fractional entitlements, in accordance with the standard Johannesburg Stock Exchange ("JSE") rounding convention. Fractional entitlements to Distributed Convertible Notes will be aggregated and redeemed and the proceeds distributed pro rata to those entitled to such fractional entitlements of Distributed Convertible Notes. Upon redemption and conversion of the Distributed Convertible Notes, if the number of Convertible Notes which fall to be redeemed for an Altron Ordinary Shareholder and the corresponding number of Convertible Notes that fall to be converted into Converted Shares for that Altron Ordinary Shareholder (whether pursuant to an election or under the Default Ratio) do not represent whole numbers, the number of Convertible Notes to be redeemed will be rounded up to the nearest whole number, and as a consequence the number of Convertible Notes to be converted will be rounded down to the nearest whole number, such that the remaining number of Convertible Notes to be converted represents a whole number (the "Rounding Convention"). The cash payment arising from fractional entitlements arising upon the distribution will be determined with reference to the price per Bytes Technology Group plc share realised in the Offer ("Offer Price"). The Offer Price range has been set by Bytes Technology Group plc at 240.0 pence to 290.0 pence per Bytes Technology Group plc share ("Offer Price Range"). The GBP cash entitlement will be converted into South African Rand on the 21 December 2020. Fractional entitlements arising from an election or from application of the Default Ratio will be resolved through the Rounding Convention. Altron will be liable for the dividends tax arising on the Distribution and as such there will be no additional tax consequences for Altron Shareholders arising due to fractional entitlements. Example of fractional entitlement: This example assumes that an Altron Ordinary Shareholder holds 101 Altron Ordinary Shares on the Record Date for the Distribution and that no election is made resulting in the Convertible Notes being redeemed for cash and converted into Converted Shares in the Default Ratio. Step 1: Convertible Note entitlement and arising fractional entitlement Convertible Notes distribution entitlement = (101 x 0.5) = 50.5 Convertible Notes The Altron Ordinary Shareholder will receive: 50 whole Convertible Notes in respect of the 101 Ordinary Shares held and a cash payment for the fractional entitlement of 0.5 Convertible Notes multiplied by the Offer Price Range to be converted with reference to the GBP/ZAR exchange rate on 21 December 2020. Step 2: Redemption/conversion of Convertible Notes assuming no election is made and the Default Ratio is applied The number of Converted Shares an Altron Ordinary Shareholder receives due to a 75% share conversion: 75% x 50 Convertible Notes = 37.5. The Rounding Convention is then applied and the Altron Ordinary Shareholder will receive: 37 Bytes Technology Group plc shares in respect of the 50 Convertible Notes, and a cash payment of 13 Convertible Notes multiplied by the Offer Price Range to be converted with reference to the GBP/ZAR exchange rate on 21 December 2020. Johannesburg 2 December 2020 Financial Advisor and Transaction Sponsor Rand Merchant Bank, a division of FirstRand Bank Limited Legal Advisor DLA Piper IMPORTANT NOTICE This announcement is an advertisement and does not constitute a prospectus in connection with an offering of securities. These materials may not be published, distributed or transmitted by any means or media, directly or indirectly, in whole or in part, in, into or within the United States. These materials do not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States. Securities may not be offered or sold in the United States absent (i) registration under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or (ii) an available exemption from registration under the Securities Act. The securities mentioned herein have not been, and will not be, registered under the Securities Act and will not be offered to the public in the United States. The announcement does not constitute an offer for the sale of or subscription for, or the solicitation of an offer to buy and subscribe for, securities to the public as defined in the South African Companies Act, 2008 (the "SA Companies Act") and will not be distributed to any person in South Africa in any manner which could be construed as an offer to the public in terms of Chapter 4 of the SA Companies Act. These materials do not, nor are they intended to, constitute a prospectus prepared and registered under the SA Companies Act. Nothing in these materials should be viewed, or construed, as "advice" as that term is used in the Financial Markets Act, 2012 and/or the Financial Advisory and Intermediary Services Act, 2001. This announcement and any offer if subsequently made is and will only be addressed to and is and will only be directed at persons in South Africa who fall within one of the categories listed in section 96(1)(a) and/or (b) of the SA Companies Act. This announcement may include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements may be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "plans", "projects", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. Forward-looking statements may and often do differ materially from actual results. Any forward-looking statements reflect Altron's current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to Altron and/or Bytes Technology Group plc's business, results of operations, financial position, liquidity, prospects, growth and strategies. Forward-looking statements speak only as of the date they are made. No representation or warranty is made that any forward-looking statement will come to pass. Date: 02-12-2020 12:32:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.