SBR002 five-year three-month JIBAR + 0,15% due 15 September Features of the Retail Notes. * As at 16 August 2006.

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1 0,35% brokerage to trade Standard Bank Retail Deposit Notes SBR002 five-year three-month JIBAR + 0,15% due 15 September 2011 Retail Notes with Online Share Trading. 1 Introduction The Standard Bank of South Africa Limited ( Standard Bank ) intends issuing Standard Bank Retail Deposit Notes ( Retail Notes or Notes ) to the retail market. The Retail Notes are JSE listed Standard Bank deposits giving the depositor access to money market interest rates. This booklet summarises the features of the Retail Notes and should be read in conjunction with the terms and conditions of the Notes as described in section 8. All amounts received by Standard Bank for Retail Notes will be Standard Bank deposits and treated as such by Standard Bank. Standard Bank is one of South Africa s leading banking and financial services groups, ranked by both profit and market capitalisation with a FitchRatings Credit Rating of AA+(zaf). Standard Bank s most recent financial results are available at 2 Features of the Retail Notes The Retail Notes will be issued for a term of five years; The interest rate paid on the Retail Notes will be the three-month JIBAR, currently 8,113%* + 0,15%, paid quarterly in arrears (rate to be set on 15 September 2006); The Retail Notes will be listed on the JSE and BESA but shall only be tradable on the JSE; Standard Bank will make a market in the Notes; The Retail Notes have a minimum investment requirement of R in the primary offering. Once listed, the Notes may be traded in R100 denominations; Any person over 18 years or entity can invest; Interest earned may form part of an individual s tax interest exemption allowance; No brokerage is payable in the primary offering; There is no UST payable on trading Retail Notes; No upfront investment costs or annual management fees are levied. * As at 16 August To purchase or trade Retail Notes, a JSE broker account can be opened online with Online Share Trading, operated by Standard Financial Markets at or by contacting the Online Share Trading Helpline on or Index 1 Introduction 1 2 Features of the Retail Notes 1 3 Indicative term sheet 2 4 Interest 2 5 Maturity date and repayment 2 6 Pricing 3 7 Buying and selling Primary offering Secondary market Deposit limits 4 8 Terms and conditions 4 9 Taxation 4 10 Eligibility 4 11 Proof of ownership 4 12 Events of default 5 13 Risk factors Standard Bank credit risk Interest rate risk Liquidity risk 5 14 Contacts 5 15 Simple example 6 16 Glossary 7 1

2 3 Indicative term sheet Issuer: Description of Notes: Status of Notes: The Standard Bank of South Africa Limited Five-year, three-month JIBAR-linked Retail Deposit Notes Deposit with The Standard Bank of South Africa Limited Issue/listing date: 15 September 2006 Closing date of offer: 12 September 2006* Maturity Date: 15 September 2011 Specified Denomination: Minimum deposit amount at issue/primary offering: R100 R (100 Notes of R100 each) Interest Rate: Three-month JIBAR, currently 8,113%**, plus 0,15% NACQ Interest Payment Dates: Interest Periods: Listing: Trading: Market Maker: JSE and BESA Code: September, December, March and June from December 2006 Each period from, and including one interest payment date to, but excluding, the next interest payment date, commencing on 15 September 2006 JSE and BESA JSE Standard Bank SBR002 * Contact your broker to confirm their specific cut-off date. ** As at 16 August Interest Standard Bank Retail Notes pay a floating rate of interest that is referenced to the three-month JIBAR interest rate plus a spread of 0,15%. JIBAR is the abbreviation for Johannesburg inter bank agreed rate, the rate at which South African banks buy and sell shortterm money. JIBAR is a market rate that changes daily based on demand and supply dynamics and is published in the daily financial press. The graph below demonstrates the Standard Bank deposit rate 3 vs three-month JIBAR 4. 12,0% 11,0% 10,0% 9,0% 8,0% 7,0% 6,0% 5,0% 4,0% Jan-03 Mar-03 May-03 Jul-03 Sep-03 Nov-03 Jan-04 Mar-04 May-04 Deposit rate Jul-04 Sep-04 Nov-04 Jan-05 Mar-05 May-05 Jul-05 Sep-05 Nov-05 Jan-06 Mar-06 May-06 Jul-06 Three-month JIBAR If three-month JIBAR increases, the interest rate paid on the Retail Notes increases. If three-month JIBAR decreases, the interest rate paid on the Retail Notes decreases. The interest rate on the Retail Notes is adjusted/reset every three months. The rate is set on each interest payment date for the following three-month period. It is important to note that the interest rate determined on each interest payment date will be fixed for the interest period until the next interest payment date even though three-month JIBAR may change during that period. Interest payments will be made on the interest payment dates, being every three months, as well as on the maturity date. On the relevant interest payment date, the interest due will be paid into the JSE broker accounts of the depositors that were registered in the register on the predetermined record date. 5 Maturity date and repayment The Retail Notes will be issued for a term of five years. On the maturity date, the principal amount of the Notes will be paid by Standard Bank into the JSE broker accounts of the depositors that were registered in the register on the predetermined record date. 3 Standard Bank ordinary fixed deposits: 36 months to under 48 months for amounts between R and R Interest rate quoted per annum (NACQ). 4 Three-month JIBAR 3-year fixed equivalents quoted per annum (NACQ). 2

3 6 Pricing Each Retail Note will have a par value of R100 and will be listed on the JSE at par value. Theoretically the traded price of the Retail Note in the secondary market should reflect the present value of future interest and principal payments less any bid-offer spread. As the Retail Notes are JIBAR-linked, it is expected that they will pull to par (revert back to R100) on interest payment dates. The price of Retail Notes in the secondary market will be a function of the prevailing interest rates and demand and supply dynamics. Standard Bank will post a bid price, which will reflect the theoretical price less a spread to cover costs. Retail Notes will trade cum-interest between the primary offering settlement date and the first last date to trade and thereafter from one interest payment date to the next following last date to trade. Between last dates to trade and interest payment dates, that is books closed periods, the Retail Notes will trade ex-interest. The bid and offer prices will be displayed through all major sources that publish JSE trading prices. 7 Buying and selling 7.1 Primary offering In the primary offering, Retail Notes may be subscribed for through any JSE broker by giving the broker the necessary instructions. Potential depositors must comply with their brokers requirements with respect to the subscription process, particularly cut-off dates. No brokerage or UST is payable by the depositor in the primary offering. 7.2 Secondary market The Retail Notes will be listed on the JSE. At any time after the primary offering and before the maturity date, depositors may sell and potential depositors may buy Retail Notes through any JSE broker by giving the broker the necessary instructions. No UST is payable by the depositor in respect of secondary market trading of Retail Notes. Standard Bank will act as a market maker, ensuring that there will always be a bid price for the Notes, thus enabling depositors to sell their Notes. Accordingly, depositors will be able to sell their Retail Notes at any time notwithstanding the maturity date of the Notes. 3

4 7.3 Deposit limits In the primary offering, the minimum deposit amount that any depositor can invest in the Retail Notes is R (ten thousand rand). There is no maximum limit on the amount that a depositor can invest, as long as the amount is in multiples of R100 (one hundred rand). The Retail Notes will be tradable on the JSE in R100 (one hundred rand) denominations. 8 Terms and conditions The Retail Notes are issued under Standard Bank s Domestic Medium Term Note Programme (the Programme ). The Programme Memorandum issued in respect of the Programme, dated 20 October 2005, is to be read with an issue specific Pricing Supplement which sets out the details of this issue. Both the Programme Memorandum and draft Pricing Supplement in respect of Retail Note issues may be viewed at 9 Taxation The provisions of the Income Tax Act pertaining to interest 6 will apply to interest earned on the Retail Notes. Individuals may 6 Income Tax Act Section 10 (1) (i) (xv) (bb) receive an amount of interest tax-free, as part of the interest exemption allowance. Accordingly under the allowance: Individuals under the age of 65 (sixty five) an aggregate amount of R (sixteen thousand five hundred rand) of interest can be earned tax-free per annum. Individuals over the age of 65 (sixty five) an aggregate amount of R (twenty-four thousand five hundred rand) of interest can be earned tax-free per annum. Depositors are, however, advised to consult their own tax consultant for advice on tax implications of the Retail Notes based on their specific tax position. Retail Notes are not subject to UST with respect to either the primary offering or secondary market trading. 10 Eligibility All natural persons over the age of 18 years and legal entities in the form of private companies, public companies, trusts, investment organisations, stokvels and other like entities are eligible to purchase Retail Notes, provided they have a JSE broker account. 11 Proof of ownership Retail Notes will be issued and trade in uncertificated form and proof of ownership will be recorded in the register maintained by STRATE. Proof of ownership can be requested from your JSE broker in the form of a statement. 4

5 12 Events of default There are certain events of default contemplated in respect of the Notes such as Standard Bank s failure to pay interest on, or repay the principal amount of, the deposit. If these circumstances prevail, depositors have certain rights, further details of which are contained in the terms and conditions described in section Risk factors Retail Notes involve certain risks. Depositors, in consultation with their financial advisors, should carefully consider the following: 13.1 Standard Bank credit risk The risk of Standard Bank not being in a position to make payments of interest and/or principal as and when required or the occurrence of any other event of default. Standard Bank is a registered bank and is required by regulation to comply with various prudential requirements in order that it is in a position to make payments to depositors as and when required. Standard Bank has a National Long-term rating from FitchRatings of AA+(zaf) Interest rate risk The movement of market interest rates may impact the traded price of Retail Notes resulting in them trading above or below their issue price Liquidity risk The risk that a depositor will not be able to sell Retail Notes as and when desired and the cost of selling Retail Notes. Standard Bank has undertaken to make a market in the Retail Notes and will offer a bid price at all times on the JSE. Depositors will have to pay the relevant brokerage charges and a bid-offer spread. 14 Contacts For more information, contact your JSE broker. Online Share Trading may be contacted via or via the Helpline on or Additional information is also available at under Products and Services. 5

6 15 Simple example of a R Retail Note investment The worked examples below run through the most likely investment and trading scenarios. 1) Interest payment for the first interest period (3 months) The example below, demonstrates how interest is calculated on a R Retail Note investment for the first interest period (3 months). This assumes an investment in the Retail Note in the primary offering. Interest period 3 months: 15 September 2006 to 15 December 2006 = 91 days, the first interest period will be 91 days. Interest rate The three-month JIBAR rate will be set on the issue date and a spread of 0,15% will be added to the rate to determine the interest rate for the first period. Assuming three-month JIBAR on the 15th September 2006: 8,113%* + 0,15% = 8,263%. Interest earned Interest earned for the first interest period will be calculated according to the following formula: (91 days (interest period)/365 days) x (8,113+0,15%) x R = R206,01 Note: All subsequent interest payments will be calculated in a similar fashion to the example above. If the 3-month JIBAR increases, interest earned will increase. If the 3-month JIBAR decreases, interest earned will also decrease. 2) Interest payment and redemption at maturity Maturity date: 15 September 2011 The principal amount of R will be paid to the investor plus the interest earned in the three month period leading to maturity, calculated using the three-month JIBAR + 0,15% rate as set for the final interest period. If we assume the same interest payment as in example 1, the investor will get paid R10 206,01 i.e. R initial investment and R206,01 interest. 3) Investor selling the SBR002 prior to maturity In the event an investor wishes to sell SBR002 Retail Notes before the maturity date, the investor would receive the market price of the Retail Notes which should amount to approximately the principal amount of R plus interest earned up until the date of sale, less any brokerage and trading costs. The market price of the Retail Notes will be determined with reference to market interest rates. 4) Investor buying the SBR002 in the secondary market In the event the investor wishes to buy the SBR002 Retail Notes after the primary offering in the secondary market, the investor would pay an amount approximately equal to the principal amount of R plus interest earned up until the date of investment, less any brokerage and costs. * Three month JIBAR as at 16 August 2006 Interest gets paid into your brokerage account 6

7 16 Glossary accrued interest BESA bid price bid-offer spread books closed period credit rating cum-interest Domestic Medium Term Note Programme events of default ex-interest floating rate Income Tax Act The deposits evidenced by the Retail Notes accrue daily interest on the principal amount. The interest earned since the last interest payment date is typically referred to as the accrued interest. This interest earned is included in the theoretical price of Retail Notes because if a Retail Note is bought in the market, the buyer will receive the interest on the interest payment date and the seller needs to be compensated for the interest accrued to the date of sale of the Note. Bond Exchange of South Africa, licensed as a securites exchange under the Securities Services Act. Is the price at which a buyer or the market maker is willing to buy Retail Notes. This price will be displayed in the JSE trading system and will be the price at which a noteholder is able to sell Retail Notes in the market. This is the difference between the best bid price and best offer price in the market and is a function of the cost to buy and sell securities on the JSE. Is the period for which a Retail Note trades ex-interest. If a Retail Note is bought during this period, the noteholder will not be recorded as the registered holder for the purposes of the upcoming interest payment and hence will not receive that interest payment. A rating by a rating agency such as FitchRatings that rates the ability of a company to meet its financial obligations. This means that accrued interest is included in the traded price. Retail Notes traded cum-interest are entitled to an interest payment on the following interest payment date. This is a programme established by Standard Bank to facilitate multiple note issues. The documentation includes the terms and conditions of various securities that Standard Bank can issue and the process governing such issuance. This is a legal term, contained in the terms and conditions of the Notes that defines when the issuer is in breach of its obligations under the Notes, such as non-payment under the Notes. This means that accrued interest is not included in the traded price. Retail Notes traded ex-interest are not entitled to an interest payment on the following interest payment date. This is an interest rate that varies over the term of the Retail Note and adjusts based on movements of the underlying interest rate, being three-month JIBAR. The Income Tax Act No. 58 of 1962, as amended. interest exemption allowance This is the tax-free allowance for interest income according to the Income Tax Act. JSE JSE broker account last date to trade market maker/ make a market maturity date minimum deposit amount NACQ offer price par value Pricing Supplement The JSE Limited, licensed as a securities exchange under the Securities Services Act. An account opened with a JSE broker that enables an individual or legal entity to trade securities on the JSE in compliance with the Financial Intelligence Centre Act. This is the last day to trade in Notes in order to be recorded in the Register as a noteholder and accordingly to be entitled to receive interest on the next interest payment date. Standard Bank will act as a market maker in the Retail Notes. This means that Standard Bank will always provide investors with the facility to liquidate an investment in Retail Notes by quoting a bid price on the JSE. Is the date upon which the principal deposit amount in respect of a Retail Note is repaid. This is the minimum rand amount of Retail Notes that a depositor can subscribe for in the primary offering. Nominal annual compounded quarterly. Is the price at which a seller or the market maker is willing to sell Retail Notes. This price will be displayed in the JSE trading system and will be the price at which Retail Notes can be bought in the market. Is the specified denomination of one Retail Note and is the value used to calculate interest. Par value is typically 100% of the nominal or principal value. Contains the specific terms and conditions of a Retail Note and should be read in conjunction with the Programme Memorandum. If there is an inconsistency between the Pricing Supplement and the Programme Memorandum, the Pricing Supplement takes precedent. 7

8 primary offering Programme Memorandum record date register(s) secondary market STRATE three month JIBAR uncertificated UST Is the initial offer of Retail Notes to the market. Is a legal document which, in conjunction with the Pricing Supplement prepared in respect of a specific Note issue, contains the terms and conditions of that Note. Is the date by which a depositor must be recorded in the register in order to be entitled to receive interest. The electronic register maintained by STRATE, evidencing ownership of Retail Notes. The buying and selling of Retail Notes on the JSE subsequent to the primary offering. The Central Securities Depositary that maintains the securities register and facilitates the trading and settlement of JSE listed securities. Is the three-month Johannesburg interbank agreed rate, the average interest rate at which banks buy and sell three-month money. This rate is calculated daily by SAFEX as the average rate quoted by the various banks. The three-month JIBAR rate can be viewed on SAFEX Money Market Information page on Reuters 0#SFXMM:. A security in respect of which ownership is evidenced by recordal in an electronic register maintained by STRATE as opposed to by issue of a certificate. Uncertificated Securities Tax, the tax paid on the buying of certain securities on the JSE. The Standard Bank of South Africa Limited ( SBSA ) has made every effort to ensure the accuracy and completeness of the information contained in this document. The information is not intended as advice and no warranty express or implied is made as to the accuracy, correctness or completeness of the information, which is subject to change at any time after publication without notice. Should the information lead you to consider entering into any transaction in relation to a financial product of any sort whatsoever including but not limited to deposits with SBSA ( the product ) you must take note of the following: There are intrinsic risks involved in transacting in any products. No guarantee is provided for the investment value in a product. Any forecasts based on hypothetical data are not guaranteed and are for illustrative purposes only. Returns may vary as a result of their dependence on the performance of underlying assets and other variable market factors. Past performances are not necessarily indicative of future performances. Unless a financial needs analysis has been conducted to assess the appropriateness of the product, investment or structure to your unique particular circumstances, SBSA cautions you that there may be limitations on the appropriateness of the information for your purposes and you should take particular care to consider the implications of entering into the transaction, either on your own or with the assistance of an investment professional. There may be various tax implications to consider when investing in the product and you must be aware of these implications before investing. SBSA does not accept liability for the tax treatment by any court or by any authorities in any jurisdiction in relation to any transaction based on the information. It is strongly recommended that individual tax advice be sought before entering into any such transaction. Authorised financial services provider The Standard Bank of South Africa Limited (Reg. No. 1962/000738/06). SBSA /06 8