CAUTIONARY ANNOUNCEMENT

The Board of Directors of the Mauritius Union Assurance Company Ltd. hereby announces that it has accepted an offer from Capital Leasing Limited for the disposal of its 100% subsidiary MUA Leasing Co. Ltd. A share purchase agreement is currently being negotiated, and it is envisaged that completion date will be on or around 15 February 2006.

The agreed price is Rs.100m, and the disposal is a disclosable transaction under Listing Rule 13.13 of the Stock Exchange. Accordingly, a circular outlining relevant details of the proposed transaction will be forwarded shortly to the shareholders of the Mauritius Union Assurance Company Ltd. a summary of which will be published in the press.

The transaction is subject to regulatory approvals.

Accordingly, shareholders of the Mauritius Union Assurance Company Ltd. and the investing public are advised to exercise caution and to seek professional advice when dealing its shares.

By order of the Board

Corporate & Secretarial Services Centre Ltd

Secretary

30 January 2006

This Cautionary Announcement is issued pursuant to Listing Rule 11.3

The Board of Directors of MUA accepts full responsibility for the accuracy of the information contained in the announcement.