DISPOSAL ANNOUNCEMENT - CULLINAN

CULLINAN HOLDINGS LIMITED
(INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA)
(REGISTRATION NUMBER 01/01808/06)
("CULLINAN")
DISPOSAL ANNOUNCEMENT
1. INTRODUCTION

STANDARD CORPORATE AND MERCHANT BANK IS AUTHORISED TO ANNOUNCE THAT FURTHER TO
THE CAUTIONARY ANNOUNCEMENT DATED 4 DECEMBER 1997, WHEREIN IT WAS ANNOUNCED
THAT CULLINAN HAD CONCLUDED AN AGREEMENT TO DISPOSE OF ALL OF THE SHARES IN ITS
WHOLLY-OWNED SUBSIDIARY, PROXIMA INFORMATION XCHANGE (PROPRIETARY) LIMITED
("PIX") TO

M-WEB CONNECT (PROPRIETARY) LIMITED, WITH EFFECT FROM 1 DECEMBER 1997 ("THE
DISPOSAL"), THE FINANCIAL EFFECTS OF THE DISPOSAL ARE PRESENTED BELOW.
2. NATURE OF THE BUSINESS

PIX IS AN INTERNET SERVICE PROVIDER, OPERATING IN THE DIAL-UP AND LEASED LINE
MARKETS.
3. RATIONALE FOR THE DISPOSAL

THE BOARD OF DIRECTORS BELIEVED THAT IT WAS APPROPRIATE FOR CULLINAN TO FOCUS
ON ITS CORE BRANDED CONSUMER PRODUCTS AND OUTDOOR/LEISURE BUSINESSES AND THAT A
MEANINGFUL STAKE IN THE COMMUNICATIONS/INTERNET INDUSTRY COULD NOT BE ACHIEVED
AT ACCEPTABLE COST, THEREFORE THE DECISION WAS MADE TO DISPOSE OF PIX.
4. FINANCIAL EFFECTS

THE TABLE BELOW SETS OUT THE PRO-FORMA FINANCIAL EFFECTS OF THE DISPOSAL ON THE
LOSS PER SHARE ("EPS") AND NET ASSET VALUE PER SHARE ("NAV") OF CULLINAN BASED
ON THE FOLLOWING:
PIX WAS DISPOSED OF AT A PROFIT OF R13,8 MILLION;

PIX ONLY FORMED PART OF CULLINAN WITH EFFECT FROM 30 SEPTEMBER 1997 AND
THEREFORE PIX DID NOT CONSTITUTE A PART OF CULLINAN DURING THE TRADING PERIOD
ENDED 30 SEPTEMBER 1997 AND THE DISPOSAL HAS NO EFFECT ON THE REPORTED EPS FOR
THE 15 MONTH PERIOD ENDED 30 SEPTEMBER 1997;

THE  BEFORE THE DISPOSAL  NAV REFLECTS THE AUDITED NAV OF CULLINAN AS AT 30
SEPTEMBER 1997, BASED ON A TOTAL NUMBER OF 620 526 128 SHARES IN ISSUE, WHICH
NAV INCLUDED PIX; AND

THE  AFTER THE DISPOSAL  NAV REFLECTS THE NAV OF CULLINAN ASSUMING THAT THE
DISPOSAL WAS EFFECTED ON

30 SEPTEMBER 1997 AND THAT THE PROFIT ON DISPOSAL OF R13,8 MILLION HAD BEEN
REALISED..
                    BEFORE THE       AFTER THE

                    DISPOSAL         DISPOSAL     CHANGE    PERCENTAGE
                    (CENTS)          (CENTS)      (CENTS)   CHANGE

NAV                 13,3             15,5         2,2       16,5
5. PROSPECTS

THE CULLINAN BALANCE SHEET IS NOW STRONG AND AT PRESENT THE COMPANY HAS NO
GEARING AS THERE IS CASH ON DEPOSIT OF APPROXIMATELY R10 MILLION. THIS IS
OBVIOUSLY A MASSIVE TRANSFORMATION OF THE COMPANY FROM A GEARING LEVEL OF IN
EXCESS OF 100% AT THE SAME TIME LAST YEAR. THIS STABLE FINANCIAL BASE WILL NOW
BE USED TO MAKE ACQUISITIONS SUITED TO THE CORE OUTDOOR LIVING AND BRANDED
CONSUMER PRODUCTS PROFILE OF THE NEW CULLINAN.

ALL CULLINAN OPERATING BUSINESSES ARE NOW PROFITABLE AND THE COMPANY EXPECTS TO
MAKE SIGNIFICANT OPERATING PROFITS FOR THE HALF YEAR ENDING 31 MARCH 1998 AS
WELL AS THE EXCEPTIONAL DISPOSAL PROFIT REFLECTED IN THIS ANNOUNCEMENT.
JOHANNESBURG
19 JANUARY 1998
MERCHANT BANK
SCMB
SPONSORING BROKER
STANDARD EQUITIES