Specialised Outsourcing Limited
COMPANY ANNOUNCEMENT
With reference to a SENS announcement on 7 May 2001, Outsors advises
shareholders that it has now instituted legal proceedings against Umgeni
Water. This event is within the 30 day period prescribed as a condition to
the bank guarantee of some R40,6 million that has been previously furnished
by Umgeni Water to Outsors.
The Company now considers this matter to be sub judice, and it will be dealt
with through the legal process that has been initiated. Should the Company
be in a position to inform shareholders as to any progress, this will be
communicated via SENS and in the press.
The legal team of Outsors remain confident that the Company has a strong
case against Umgeni Water, and that the Company is unlikely to suffer any
loss as a consequence. The legal costs associated with this matter will be
borne by the Company and expensed as and when they arise.
Outsors continues to trade profitably, has not lost any major clients, nor
has it suffered any significant staff loss. Shareholders will also note the
recently announced appointment of Mr JB Zwart and Mr CD Stein as non-
executive directors. The cash resources of the Company remain intact at R135
million after having paid the 2000 dividend.
ends
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