1TIME HOLDINGS LIMITED - Notice of appliaction for business rescue and renewal of cautionary announc

The board of directors of 1time ("the Board") is of the view that the Company's operating subsidiaries, being 1time Airline Proprietary Limited and Jetworx Aircraft Services Proprietary Limited ("the subsidiaries"), are currently financially distressed, as contemplated in Chapter 6 of the Companies Act, 71 of 2008 ("the Companies Act"). However, the Board is also of the view that there appears to be a reasonable prospect of rescuing these subsidiaries from their current difficulties and is in the process of preparing a comprehensive business rescue plan.

Based on this view, the Board resolved that the subsidiaries begin business rescue proceedings and be placed under supervision in terms of Section 129 of the Companies Act. The Board is of the opinion that the implementation of business rescue will afford the executive directors the opportunity to develop and implement the business rescue plan in a manner that will optimise the likelihood of the subsidiaries continuing to exist as going concerns.

The resolutions were filed with the Companies and Intellectual Property Commission on Tuesday, 21 August 2012. The filing date is therefore the effective date of commencement of the business rescue proceedings as contemplated in terms of Section 132(1)(a)(i) of the Companies Act.

Accordingly, 1time Airline Proprietary Limited and Jetworx Aircraft Services Proprietary Limited are now formally in business rescue. It is anticipated that following the imminent appointment of a business rescue practitioner for each subsidiary, such subsidiary will operate under the relevant practitioner's temporary supervision for the next few months. The practitioner's function will be to assist the subsidiary to devise a business rescue plan that will be accepted by the stakeholders.

The business rescue process will allow 1time to continue to operate while it prepares and implements a plan of reorganisation - to focus on its more profitable routes and to reorganise the business financially and strategically so that it can operate efficiently and sustainably while aiming to return to profitability and to emerge as a healthier company.

The subsidiaries are in the process of giving notice of the resolution and the effective date, in the manner prescribed to every affected person.

Further to the cautionary announcement dated 30 March 2012, and subsequent renewal of cautionary announcements, the last of which was dated 10 August 2012, shareholders are advised that the full impact of the above application is still to be determined and may have a material effect on the price of the Company's securities.

Accordingly, shareholders are advised to exercise caution when dealing in the Company's securities until further information is provided.