Telkom use only Memorandum of Understanding by and between Telkom SA (Ltd)
(“The Company”)
and
Communication Workers Union
(“CWU”)

1. The Company will engage Organised Labour at the Company Forum during the period 2 May 2006 to 31 July 2006 on the establishment of the Coalition of Telkom Unions (CTU), or a similar body, in terms of the provisions of the Labour Relations Act, no 66 of 1995, as amended.

2. The Company will engage Organised Labour at the Company Forum during the period 1 August 2006 to 30 September 2006 on the issue of an Agency Shop as provided for in terms of the provisions of the Labour Relations Act, no 66 of 1995, as amended.

3. CWU will submit a motivation to the Company to improve the allocation of shares to employees in the Bargaining Unit, prior to the next allocation of shares in terms of the Telkom Conditional Share Plan (TCSP).

4. Special arrangements will be made to pay only the salary increases, as per the Collective Agreement on Substantive Matters, to CWU members on Wednesday, 3 May 2006.

5. Special 2hour report back meetings on the Collective Agreement on Substantive Matters will be granted. The normal arrangements for such report back meetings will apply.

CWU Shopstewards will be given training sessions on the Collective Agreement on Substantive Matters on the basis of ten (10) Shopstewards, nominated from each of the following areas:

7. For the strike/lockout period (18 to 25 April 2006), the Company will
deduct unpaid absences from duty (“no work, no pay” principle) up to a
maximum of four (4) days on payday, 23 June 2006, after employees in the
bargaining unit have received their gainsharing bonuses, and up to a
maximum of two (2) days on payday, 25 July 2006.

For TELKOM: For CWU:
_________________________ _________________________
(duly authorised representative) (duly authorised representative)

Witnesses:
1. _______________________ 2. _______________________
DATE: 26 April 2006 PLACE: PRETORIA