After an absence of nearly 13 years, Intergraph Corporation has re-invested in South Africa by taking a 10% ownership stake in its distributor, Intergraph Systems Southern Africa. In an agreement reached this month, the Ikwezi Group, who own 60%, and Fintech, who now own 30%, welcomed the USA company's buy back of a stake in its southern African distributor.

"This decision by Intergraph Corporation not only confirms the confidence this large American company has in the South African market, but is also an indication of their confidence in the local management and our joint venture status with the Ikwezi Group", said Rex van Olst, Managing Director of Intergraph Systems.

In 1987, Intergraph, like many other US companies, disinvested in South Africa because of apartheid. At that time, Intergraph's subsidiary for southern Africa was sold to the Fintech Group who managed the company, renamed Intertech Systems and in 1999 sold a 60% stake in this company to the black economic empowerment (BEE) group, Ikwezi. Fintech retained a 40% stake in Intertech Systems.

Under Ikwezi's management control, the two operating divisions of Intertech Systems - Intergraph and the Internet service provider IBI - were established as separate companies. Both of these separate companies were held 60% by the Ikwezi Group and 40% by Fintech.

The Fintech Group will give up 10% of their holding in Intergraph Systems to Intergraph Corporation, leaving Fintech with 30%. The Ikwezi Group will retain its 60% stake in the company, thus assuring its continued status as a legitimate BEE company.

Intergraph Systems

(012) 653 3708

rvolst@intergraph.co.za

www.intergraph.co.za