LONRHO TO DEMERGE ITS AFRICAN NON-MINING BUSINESSES

LONRHO PLC ("LONRHO") ANNOUNCES ITS INTENTION TO DEMERGE TO SHAREHOLDERS ITS
AFRICAN NON-MINING BUSINESSES ("LONRHO AFRICA" ), SUBJECT, INTER ALIA, TO
SHAREHOLDER APPROVAL. THE DEMERGED COMPANY WILL BE NAMED LONRHO AFRICA PLC AND
WILL APPLY FOR A LISTING ON THE LONDON STOCK EXCHANGE.

LONRHO AFRICA'S OPERATIONS SPAN 14 SUB-SAHARAN AFRICAN COUNTRIES, AND ARE
FOCUSED ON FIVE CORE DIVISIONS, NAMELY MOTOR DISTRIBUTORSHIPS AND DEALERSHIPS,
AGRI-BUSINESS, DISTRIBUTION, HOTELS, AND PROPERTY AND CONSTRUCTION.

THE DEMERGED GROUP WILL BE MANAGED BY THE EXISTING LONRHO AFRICA MANAGEMENT
TEAM.

THE EXPECTED TIMETABLE FOR THE DEMERGER, WHICH WILL BE SUBJECT, INTER ALIA, TO
THE APPROVAL OF THE HIGH COURT, IS:

  PUBLICATION OF DEMERGER DOCUMENTATION      4TH MARCH, 1998
  LONRHO EXTRAORDINARY GENERAL MEETING

  TO APPROVE THE DEMERGER                    27TH MARCH, 1998

  FIRST DEALINGS IN LONRHO AFRICA SHARES     7TH MAY, 1998
ENQUIRIES

JOHN MCINTYRE   DEUTSCHE MORGAN GRENFELL     +44 171 545 8000

ANTHONY CARDEW  CARDEW & CO.                 +44 171 930 0777

THE CONTENTS OF THIS ANNOUNCEMENT, FOR WHICH LONRHO PLC IS RESPONSIBLE, HAVE
BEEN APPROVED BY MORGAN GRENFELL & CO. LIMITED ("DEUTSCHE MORGAN GRENFELL")
WHICH IS REGULATED BY THE SECURITIES AND FUTURES AUTHORITY, FOR THE PURPOSES OF
SECTION 57 OF THE FINANCIAL SERVICES ACT 1986.

DEUTSCHE MORGAN GRENFELL IS ACTING FOR LONRHO AND LONRHO AFRICA IN RELATION TO
THE DEMERGER AND FOR NO-ONE ELSE AND WILL NOT BE RESPONSIBLE TO ANYONE OTHER
THAN LONRHO AND LONRHO AFRICA FOR PROVIDING THE PROTECTIONS AFFORDED TO
CUSTOMERS OF DEUTSCHE MORGAN GRENFELL NOR FOR PROVIDING ADVICE IN RELATION TO
THE DEMERGER.