AEL: ALLIED ELECTRONICS CORPORATION LIMITED - Altron Nexus / City Of Tshwane Municipal Broadband Network Judgement Altron Nexus / City Of Tshwane Municipal Broadband Network Judgement Allied Electronics Corporation Limited (Registration number: 1947/024583/06) (Incorporated in the Republic of South Africa) Share code: AEL ISIN: ZAE000191342 ("Altron" or "the company") ALTRON NEXUS / CITY OF TSHWANE MUNICIPAL BROADBAND NETWORK JUDGEMENT The Board wishes to inform shareholders that judgement was handed down in the Gauteng High Court in Pretoria relating to the application brought by the City of Tshwane ("CoT") to review and set aside the tender and award of the Altron Nexus / CoT Municipal Broadband Network contract. The contract was awarded to a special purpose vehicle ("SPV") in June 2015, in which Altron Nexus is involved as the primary network designer and architect, supplier of broadband equipment and related services, as well as being a minority shareholder of the SPV. The matter relates to a dispute between the SPV and CoT over the latter´s allegations that the tender award process was unlawful due to the internal processes and procedure at the CoT not having been followed correctly. Subsequent to being awarded, the project was put on hold by CoT, pending the outcome of the court case. The Court´s decision on 16 July 2019 was to set aside the awarding of the contract on the basis of internal processes not having been followed by the CoT in the awarding of the tender; in the decision of the Municipal Council to approve the terms and sign-off of the Build Operate and Transfer ("BOT") agreement entered into between CoT and the SPV; and the waiver by CoT of the fulfilment of suspensive conditions precedent relating to the BOT agreement. Altron Nexus has assessed the status of this matter and reasonably estimates the exposure of the business to amount to between R40 million and R60 million. This takes into account provisions taken against its claim against the SPV due to the uncertainties with regard to the legal challenge brought by CoT and the options available, including repossession and redeployment of equipment supplied to date. Altron is in the process of studying the judgement and its legal rights and will engage with the SPV, project funders and CoT and consider the next steps to take with regard to this matter, at which point the company will provide shareholders with an updated disclosure. Johannesburg 17 July 2019 Sponsor: Investec Bank Limited Date: 17/07/2019 08:07:00 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.