LONRHO - DIVIDEND ANNOUNCEMENT

LONRHO PUBLIC LIMITED COMPANY
(INCORPORATED IN ENGLAND)

(REGISTERED IN THE REPUBLIC OF SOUTH AFRICA UNDER REGISTRATION NUMBER
69/00015/10)
DIVIDEND ANNOUNCEMENT

THE BOARD HAS DECLARED A FINAL DIVIDEND OF 3P (1997: 3P) PER SHARE, 1.25P OF
WHICH IS AN ENHANCED FOREIGN INCOME DIVIDEND ("FID"). BECAUSE THE ADVANCE
CORPORATION TAX PAID ON A FID CAN BE RECLAIMED BY THE COMPANY, THE CASH SAVED
WILL BE PASSED ON TO SHAREHOLDERS BY ENHANCING THE AMOUNT OF THE FID BY 25 PER
CENT TO 1.25P PER SHARE, WHICH IS THE EQUIVALENT GROSS VALUE OF A 1P

CONVENTIONAL DIVIDEND. FOR INCOME TAX PURPOSES THE FID IS TREATED AS HAVING
SUFFERED INCOME TAX AT THE LOWER RATE OF 20 PER CENT, BUT THIS INCOME TAX IS
NOT REPAYABLE TO SHAREHOLDERS.

THE TOTAL DISTRIBUTION IS EXPECTED TO AMOUNT TO #41 MILLION (1997: #41 MILLION)
THE FINAL DIVIDEND WILL BE PAID ON 6 APRIL 1998 TO SHAREHOLDERS ON THE
REGISTERS AT 6 FEBRUARY 1998. LEGISLATION PREVENTS SHAREHOLDERS BEING OFFERED
THE OPPORTUNITY TO ELECT TO RECEIVE SHARES IN LIEU OF CASH IN RESPECT OF A FID,
BUT THE OPPORTUNITY WILL BE OFFERED IN RESPECT OF THE 1.75P ELEMENT OF THE
DIVIDEND THAT IS NOT A FID. DETAILS WILL BE SENT TO SHAREHOLDERS IN FEBRUARY.
DIVIDENDS TO BE PAID FROM THE SOUTH AFRICAN TRANSFER OFFICE WILL BE PAID IN
SOUTH AFRICAN CURRENCY AT THE RATE OF EXCHANGE RULING ON 6 FEBRUARY 1998.
THE COMPANY'S SHARES WILL BE LISTED EX DIVIDEND IN LONDON AND JOHANNESBURG ON 2
FEBRUARY 1998 AND 9 FEBRUARY 1998 RESPECTIVELY.
4 GROSVENOR PLACE
LONDON SW1X 7DL
ENGLAND
22 JANUARY 1998

LOCAL OFFICE:                   LOCAL TRANSFER SECRETARIES:

FIRST FLOOR                     MERCANTILE REGISTRARS LIMITED

19 GIRTON ROAD                  SIXTH FLOOR, 94 PRESIDENT STREET
PARKTOWN                        JOHANNESBURG 2001

JOHANNESBURG 2193               (PO BOX 1053, JOHANNESBURG 2000)
(PO BOX 1146, JOHANNESBURG 2000)