Notice is hereby given that an Appropriation Meeting will be held in the boardroom of Cliffe Dekker (Attorneys) 11^th floor, NBS Waldorf

80 St George’s Mall, Cape Town at 19h30 on

 Tuesday 19 April 2005

For the purpose of conducting the following appropriations:

Members wishing to participate in a Sale by Proxy must submit a duly completed and signed form to the Chairman PRIOR to the commencement of the bidding.

MEMBERS IN ARREAR WITH THEIR PAYMENTS DO NOT QUALIFY TO PARTICIPATE IN APPROPRIATIONS.

APPROPRIATION RESULTS OF LAST MEETING

Please phone (021) 930 2601 to arrange secure in-door parking

The Secretary

Southern Cross Terminating Mutual

Building Society

P O Box 15812

PANORAMA

7506

APPOINTMENT OF PROXY

Dear Sir,

I,…………………………………………………………being a member

of Section………….Registered No……………………….hereby appoint :

………………………………………………………………………………….

as my duly Authorised Representative to bid on my behalf at the

Appropriation Meeting to be held on:  19 APRIL 2005

I authorise a ceiling bid of R………………..per share  (in words:

claiming ……………………shares  (Loan Value ………………………)

......................................

Member’s Signature

.................................

                                 Signature of Authorised representative

DATE: ………………………                          

Members in arrear with their payments may not participate in Appropriations.

FOR THE BENEFIT OF NEW MEMBERS:

Secure in-door parking is available for the duration of the meeting.

It is imperative that you advise the Secretary of your vehicle registration number so that parking may be booked on your behalf.

Usually, certain bays on the 4^th floor are used for the Society’s members.  If you find the lift foyer door locked, there is a wall-mounted intercom which will enable you to request Security to open the door for you.  The meeting is held in the main boardroom on the 11^th Floor.

The entrance to the parking garage is in Burg street.  You need to request Security to open the gates for you by using the wall-mounted intercom.

SALES  (The alternative system to waiting for one's number to be drawn by Ballot)

At an appropriation by Sale members offer to pay back more (a premium) than what they borrow. An auction takes place with members bidding against each other (either in person or by PROXY) and the member making the highest bid becomes entitled to a loan to the value of the number of shares he owns in a particular holding. The minimum BID for each share is decided by the Board and members are advised accordingly.

Loans obtained by Sale are repayable at the rate of R1,30 per share  per month over a period of approximately 13 years.

Appropriations are held until the holder of every shareholding has become entitled to a loan, thereafter the Section commences its process of termination.  Members qualify to

participate in appropriations immediately after joining the Society - there is no waiting period.  Members are notified by post of all appropriation meetings in order that they may attend and participate.

PREMIUMS The amount bid by the successful member at a Sale is referred to as the PREMIUM the total amount of which is payable in equal instalments over a period of 150 months together with the loan repayments.

A member is not necessarily committed to paying the full original premium, because, if his number is subsequently drawn in a Ballot, 100% (Section M) of the balance outstanding on premium at the date his number is drawn is waived.

Premiums on appropriations by Sale provide the main source of the Society's administration costs.