HOLDING STATEMENT - MEC ART TRANSACTION ALLEGATIONS

Monday 21 May 2012

This morning's press article in The Star brought this issue to McDonald's South Africa's attention for the first time. McDonald's operates along ethical lines placing great emphasis on good Corporate Governance.

After an internal investigationthis morning, McDonald's South Africa confirms that the alleged transaction did take place. The franchisee of the particular restaurant, in his capacity as a businessman, was empathetic to the needs of a friend, the artist, offering the assistance of using the credit card facility in his restaurant to process the transaction, as the artist does not have credit card facilities with which to receive payments.

"No sale transaction was processed through the McDonald's system. In hindsight, the franchisee agrees that this was an innocent error of judgment", said Sechaba Motsieloa, Corporate Affairs Director at McDonald's South Africa.

"Nevertheless, it is not in line with McDonald's South Africa's Corporate Governance standards and actions such as this are not acceptable", concluded Motsieloa.

Statement isued by Sechaba Motsieloa, McDonald's South Africa May 21 2012

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