PRESS RELEASES

Red Banner Holdings formed with acquisition of Cydro Solutions (Cydro.com)
- RED BANNER EBUSINESS INTEGRATION MOVES TO COMPLETE TRANSFORMATION WITH ACQUSITION OF CYDRO.COM

         CAPE TOWN -- (BUSINESS WIRE)-- Jun. 21, 2003--

The combination of Red Banner eBusiness Integration and Cydro Solutions (CYDRO.COM) Creates Leading Provider of Business-Class Web Hosting Solutions in the Small and Medium Enterprise Market

Cape Town, June 21, 2003 -- Red Banner eBusiness Integration (Pty) Ltd. and Dotcom Trading 754 (Pty) Ltd trading as Cydro Solutions/CYDRO.COM today announced that the boards of directors for both companies have approved a definitive group formation agreement. The combination of Red Banner and Cydro.com creates a leading provider of business-class hosting solutions to the small and medium enterprise (SME) market, with the broadest portfolio of managed hosting and value-added services in the industry. Red Banner also announced plans to integrate its self-developed corporate web content management system, People Server as a product for the "new" Red Banner ISP which will offer the R50,000 single user product at only R2000 to the SME market.

The new Red Banner company will be named Red Banner ISP (www.redbannerisp.com), and will be headquartered in Johannesburg, South Africa. 

"Today's announcement marks a major step toward completion of a process we began more a year ago to transform Red Banner eBusiness Integration from a web content management company to an Internet-centric computing company with hosting as a core strategic business," said Red Banner Director and Chief Executive Officer André Webb. "Hosting will serve as the foundation for many opportunities as SMEs increasingly outsource IT. This merger strategically positions us to take advantage of all the aspects of the Third Wave of computing, as the real power of computing moves from the desktop to the network." Cydro.com director, Simone Bester, said, "Combining forces with Red Banner eBusiness is clearly a win for both companies, securing our spot among the leaders in ebusiness and business ISP's moving forward, as the SA hosting market continues to take flight.

Together, we can deliver a wide range of e-business processes to SMEs through one of the most diversified and expanded portfolios of managed hosting and value-added services in the industry.

Acquisition Terms
Under the agreement, Red Banner Holdings will be formed and acquire majority shareholding of 51% in both Red Banner eBusiness Integration and 51% in Red Banner ISP.

The formation of Red Banner ISP will:
* Provide the most complete portfolio of hosting services in the industry, with the most hosted collaboration applications, database server and e-commerce applications, data transfer, email communications services, server extensions, sms messaging and professional services across the board. 
* Provide business-class hosting services to small and medium business customers, through both direct and partner channels

Management
The newly formed group of companies under the umbrella of a holding company will be led by top executives from Red Banner eBusiness Integration and Cydro Solutions. Upon completion of the merger, Webb will become Director of the new holding company Red Banner Group (Pty) Ltd., remain the Managing Director of Red Banner eBusiness Integration and become a director in Red Banner ISP, and Bester will become director of Red Banner Holdings Limited and remain the Managing Director of Red Banner ISP. 

Approval Process
The merger is subject to the approvals of Red Banner eBusiness Integration and Cydro.com shareholders. The companies anticipate that the acquisition will close in August 2003. Kirkman Lanfear Chartered Accountants acted as financial advisor to Red Banner e Business Integration and Afmill Investments acted as financial advisor to Cydro.com. 

Red Banner ISP today unveiled plans to positioning the company as a hosting and online application services company with an in-house developed content management system. "We've been in a transformation process for two years, and have discussed for some time our belief that our best opportunity for returning shareholder value is in the fast growing hosting business," said Bester. "With the recent drastic downturn in the economy and the software industry, we have decided to focus our resources on growth opportunities in the hosting business." 

About Red Banner

Red Banner ISP strives to be the partner of choice for small, medium and enterprise businesses to achieve successful IT integration by providing the knowledge, services and tools to build, manage and promote their businesses through IT. Red Banner focus it's software solutions to the marketing, multi-media, pre-press publishing, advertising and film industries, including universities and government departments. For more information about Red Banner, please visit www.redbanner.biz.

About Cydro.com

Cydro Solutions is a market leader in Internet website hosting, and outperforms it's competitors in many areas. Cydro.com servers are world class and each hosting account receives a world-class, feature-rich Client Panel which allows clients to set up databases, email accounts and more. In short; Cydro Solutions dotcom businesses! For more information about Red Banner, please visit www.redbanner.biz 


         CONTACT: 
         Red Banner PRO, South Africa
         Andro Engelbrecht, 
         International: +27 .11 887 1049
         South Africa: 0861 10 21 57
         info@redbanner.biz 
         www.redbanner.biz

         Source: Red Banner Group (Pty) Ltd.

Copyright ©2004   Red Banner Group (Pty) Ltd.   All rights reserved.