This distribution is 0.25 cents up on Redefine's distribution for the previous quarter of 8 cents per linked unit. It further exceeds Redefine's first quarter distribution of 7.5 cents per linked unit. Distributions for the threequarters to date total 23,75 cents per linked unit.

Redefine's CEO Brian Azizollahoff is confident about the hybrid fund's distribution for its financial year ending 31 August 2004

"The distribution of 23, 75 cents per linked unit to date positions Redefine to exceed its forecast distribution of not less than 31 cents per linked unit for its financial year," said Azizollahoff.

Redefine Income Fund has ensured distributions above expectations through effective asset management and reacting to changing market conditions. As a hybrid fund, Redefine can ensure the optimum balance between listed securities and fixed property to maximise returns. Redefine's current focus is on fixed property investment.

"Redefine is reducing its holdings in listed securities, which are trading at a premium to net asset value, and investing the proceeds directly into high yielding fixed properties," said Brian Azizollahof, CEO of Redefine.

Redefine's investment criteria for physical property include enhancing its existing portfolio of premium properties with quality tenants. This is seen by its recent purchase of the refurbished 14 270m2 90 Rivonia Road, Sandton, entirely occupied by Alexander Forbes Group on a new 7-year triple net lease.

Recent acquisitions, including 90 Rivonia Road, has also seen Redefine Income Fund secure the longest lease expiry profile on the listed property sector of the JSE Securities Exchange South Africa.

According to analyst Leon Allison of First South Securities (Pty) Ltd, over 40% of Redefine's directly owned property portfolio has leases expiring in 2008 and beyond. This means that income from a substantial portion of Redefine's assets is guaranteed for the next four years, and in numerous cases, even longer.

"In addition to the length of its lease expiry profile, the quality of Redefine's tenants and properties means it also has a sound lease profile," said Allison.

This bodes well for Redefine's strategy to ensure both robust distributions in the short term and growth in the medium to long term.

The payment of Redefine's third quarter distribution will be made on Monday, 26 July 2004.

Redefine Income Fund

Brian Azizollahoff

Tel: 011 283 0000

Cell: 083 255 2351

Or

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Sandy Davey

Tel: 011 880 2213

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