PINNACLE TECHNOLOGY HOLDINGS LIMITED - CAUTIONARY ANNOUNCEMENT PERTAINING TO A  
SPECIFIC ISSUE OF SHARES FOR CASH TO A BLACK ECONOMIC EMPOWERMENT ("BEE") ENTITY
Pinnacle Technology Holdings Limited                                            
(Incorporated in the Republic of South Africa)                                  
(Registration number 1986/000334/06)                                            
("Pinnacle" or "the company")                                                   
Share Code : PMC                                                                
ISIN ZAE000022570                                                               
CAUTIONARY ANNOUNCEMENT PERTAINING TO A SPECIFIC ISSUE OF SHARES FOR CASH TO A  
BLACK ECONOMIC EMPOWERMENT ("BEE") ENTITY                                       
Pinnacle is in advanced discussions with a BEE entity, Rokunda Investment       
Holdings (Proprietary) Limited ("Rokunda"), in terms of which Rokunda intends   
to subscribe, by way of a specific issue of shares for cash, for an effective   
26% shareholding in the company.                                                
The shares will be issued at a negotiated discount to the prevailing market     
price.                                                                          
Pinnacle shareholders are advised to exercise caution when dealing in their     
shares on the JSE Securities Exchange South Africa, until such time as a        
further announcement is made in this regard.                                    
Midrand                                                                         
27 January 2004                                                                 
Sponsor                                                                         
Grant Thornton Kessel Feinstein                                                 
Corporate Finance (Pty) Ltd                                                     
(Registration number 2000/003541/07)