NAMPAK - PRESS RELEASE

NAMPAK LIMITED
(INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA)
(REGISTRATION NUMBER 1968/008070/06)
("NAMPAK")
PRESS RELEASE
ACQUISITIONS PROVIDE BOOST TO NAMPAK

THE WET WEATHER OVER MUCH OF SOUTH AFRICA DAMPENED DEMAND FOR NAMPAK'S BEVERAGE
PACKAGING AND, DESPITE THE DROP IN INTEREST RATES, NON-DURABLE CONSUMER
SPENDING REMAINED WEAK IN THE SIX MONTHS TO THE END OF MARCH 2000.

TURNOVER AND OPERATING PROFIT INCREASED BY 22% AND 27% RESPECTIVELY, DUE
LARGELY TO ACQUISITIONS IN SOUTH AFRICA AND THE ACQUISITION OF PLYSU IN THE
UNITED KINGDOM, TOGETHER WITH THE CONSOLIDATION OF THE AFRICAN BUSINESSES.
TREVOR EVANS, THE DEPUTY CHAIRMAN AND CEO SAID THAT THE INTEGRATION OF PLYSU
WITH BLOWMOCAN IS PROCEEDING WELL AND SIGNIFICANT SYNERGIES ARE EXPECTED FROM
THE MERGED ENTITY.  HE ALSO SAID THAT THIS WILL CREATE A SOLID PLATFORM FOR
FURTHER INTERNATIONAL EXPANSION.

THE TOP MANAGEMENT OF THE GROUP WAS RECENTLY RESTRUCTURED TO PROVIDE GREATER
FOCUS ON INTERNATIONAL GROWTH WHILST RETAINING A STRONG EMPHASIS ON SOUTH
AFRICA AND THE REST OF AFRICA.

GROUP OPERATING PROFIT ROSE BY 27% TO R464 MILLION, WITH THE OPERATING MARGIN
INCREASING MARGINALLY TO 10,1% FROM 9,8% IN 1999.  EVANS SAID THAT MARGINS
REMAINED UNDER PRESSURE DUE TO SUBSTANTIAL INCREASES IN THE PRICES OF RAW
MATERIALS, AS WELL AS INDUSTRY OVERCAPACITY LEADING TO A HIGHLY COMPETITIVE
ENVIRONMENT.

THE METALS SECTOR WAS PARTICULARLY HARD HIT BY THE WET WEATHER AND, EVEN WITH
THE EXTRA VOLUME FROM THE CROWN CORK ACQUISITION, OPERATING PROFIT WAS DOWN BY
16%, REFLECTING BOTH LOWER VOLUMES AND CONTINUING PRESSURE ON MARGINS.
TURNOVER IN THE PAPER SECTOR GREW AS A RESULT OF THE TISSUE BUSINESS

ACQUISITIONS AND THE ACQUISITION OF THE ALPHA GROUP'S SACK MANUFACTURING
OPERATION, AS WELL AS THE CONSOLIDATION OF THE MALAWIAN AND ZIMBABWEAN
OPERATIONS.  EVANS NOTED THAT OPERATING MARGIN INCREASED TO A PLEASING 8,0%
FROM 4,2% LAST YEAR AND EXPRESSED CONFIDENCE IN ACHIEVING FURTHER IMPROVEMENTS
IN THIS SECTOR.

MARGINS CAME UNDER PRESSURE IN THE PLASTICS SECTOR DUE TO THE INABILITY TO PASS
ON THE SUBSTANTIAL INCREASES IN THE PRICES OF RAW MATERIALS.

BOTH BLOWMOCAN AND PLYSU ALSO EXPERIENCED DIFFICULTY IN PASSING ON THE
SUBSTANTIAL POLYMER PRICE INCREASES.

EVANS SAID THAT THE PROSPECTS FOR THE NEXT SIX MONTHS WILL DEPEND TO A LARGE
DEGREE ON THE INCREASE IN SPENDING BY CONSUMERS ON NON-DURABLE GOODS.  HOWEVER,
THE BENEFITS FROM ACQUISITIONS MADE WILL CONTINUE TO HAVE A POSITIVE IMPACT AND
A SLIGHTLY HIGHER RATE OF GROWTH IN EARNINGS IS EXPECTED IN THE SECOND HALF OF
THE YEAR, HE CONCLUDED.
11 MAY 2000
PRODUCED AND RELEASED BY NAMPAK LIMITED

FOR FURTHER INFORMATION PLEASE CONTACT TREVOR EVANS ON
+27 11 719 6363