Sanlam Private Investments / Merrill Lynch - Acquisition By Sanlam Private

Investments
SANLAM PRIVATE INVESTMENTS
  (Incorporated in the Republic of South Africa)
  (Registration number 2000/023234/07)
  ("Sanlam Private Investments")
MERRILL LYNCH     SMITH BORKUM HARE
  Merrill Lynch South Africa (Pty) Ltd
  Registered sponsor and

  Member of the JSE Securities Exchange South Africa
  Registration number 1995/001805/07
  ("Merrill Lynch South Africa")

Announcement relating to the acquisition by Sanlam Private Investments
of the Johannesburg and Durban Private Client asset management

and stockbroking business of Merrill Lynch South Africa ("the transaction")
Introduction

   Shareholders and clients are advised that Sanlam Private Investments, a
wholly-owned subsidiary of Sanlam Investment Management (Proprietary)
Limited ("Sanlam Investment Management"), and Merrill Lynch South Africa
have entered into an agreement whereby Sanlam Private Investments will
acquire the Johannesburg and Durban operations of the Merrill Lynch South
Africa Private Client asset management and stockbroking business ("Merrill
Lynch Private Clients").
Rationale for the transaction

   In line with Sanlam Limited's ("Sanlam") vision of being the leader in
wealth creation, Sanlam Investment Management has, as one of its core
strategies, the aim of building a substantial presence in the South African
high net-worth individual market. Utilising the existing asset management
skills and distribution capabilities of Sanlam, Sanlam Private Investments
is positioned to create significant shareholder value in the retail asset
management market.

   Merrill Lynch Private Clients (formerly part of Davis Borkum Hare) has
been active in the private client asset management and stockbroking market
for more than 60 years and has more than 5 600 clients with approximately R8-
billion of funds under management and administration in their Johannesburg
and Durban offices.

   Through acquisition and organic growth, Sanlam Private Investments has
increased its funds under management and administration to R2,3-billion over
the past number of years. Subsequent to the transaction, Sanlam Private
Investments will have a combined managed asset base in excess of R10-
billion, positioning Sanlam Private Investments as one of the leading
private client asset management and stockbroking businesses in South Africa
as measured in terms of funds under management. Having reached the critical
mass level required to leverage off the current infrastructure, Sanlam
Private Investments will be able to generate substantial income from this
business going forward.
Conclusion

   Strategically, Sanlam Private Investments and Merrill Lynch Private
Clients form an excellent fit.  Given the size and quality of the Merrill
Lynch Private Clients asset base and Sanlam Private Investments' geographic
branch presence and distribution capability, the combined entity will be
able to service high net-worth individuals throughout South Africa, offering
a wide range of retail investment products.

   To ensure continuity of service, Merrill Lynch Private Clients' Financial
Consultants will join Sanlam Private Investments on closing of the
transaction.

   Whilst the combined entity is expected to deliver meaningful earnings in
the medium to long term, it is anticipated that the transaction will not
have any immediate effect of significance on the earnings or net asset value
of Sanlam or Sanlam Investment Management.
Conditions precedent

   The implementation of the transaction is subject to the approvals of the
Competition Authorities and the South African Reserve Bank.
   Cape Town
   27 November 2001
Corporate advisors to Sanlam Private Investments
  Gensec Bank Limited
  (Registration number 1996/004744/06)
Attorneys to Sanlam Private Investments
  Werksmans Incorporated
Attorneys to Merrill Lynch South Africa
  Bowman Gilfillan Inc.
  Registration number 1998/021409/21