AUDITED RESULTS - BELL

BELL EQUIPMENT LIMITED

AUDITED RESULTS FOR THE TEN MONTHS ENDED 31 DECEMBER 1997
CONSOLIDATED INCOME STATEMENT

                                                 10 MONTHS       12 MONTHS
R000                                             DEC 1997        FEB 1997
TURNOVER                                         849 220         821 311
OPERATING INCOME                                 34 155          64 205
NET FINANCE COSTS                                22 880          37 525
INCOME BEFORE TAXATION                           11 275          26 680
TAXATION                                         4 376           8 551
INCOME AFTER TAXATION                            6 899           18 129
ATTRIBUTABLE TO OUTSIDE SHAREHOLDERS             (296)           (831)
ATTRIBUTABLE TO SHAREHOLDERS                     6 603           17 298
SHARES IN ISSUE - 000

(WEIGHTED AVERAGE)                               63 243          63 217
EARNINGS PER SHARE (CENTS)                       10              27
DIVIDEND PER ORDINARY

SHARE (CENTS)                                    -               7

NET ASSET VALUE (CENTS)                          319             303
CONSOLIDATED BALANCE SHEET
CAPITAL EMPLOYED

STATED CAPITAL                                   41 641          41 611
NON-DISTRIBUTABLE RESERVES                       52 750          47 978
RETAINED INCOME                                  107 275         101 896
SHAREHOLDERS` EQUITY                             201 666         191 485
OUTSIDE SHAREHOLDERS                             5 245           4 540
NET BORROWINGS                                   243 980         125 755
DEFERRED TAX                                     8 861           8 902
TOTAL CAPITAL EMPLOYED                           459 752         330 682
PROPERTY, PLANT AND EQUIPMENT                    103 857         95 019
INVESTMENTS                                      1 999           4 586
INVENTORY                                        348 998         320 945
ACCOUNTS RECEIVABLE                              128 439         108 953
ACCOUNTS AND DIVIDENDS PAYABLE                   (128 587)       (194 040)
TAXATION                                         5 046          (4 781)
EMPLOYMENT OF CAPITAL                            459 752         330 682
ABBREVIATED CASH FLOW STATEMENT
CASH OPERATING INCOME BEFORE

WORKING CAPITAL CHANGES                          40 046          75 003
CASH INVESTED IN WORKING CAPITAL                 (108 565)       (27 137)
NET FINANCE COSTS PAID                           (24 117)        (38 387)
TAXATION PAID                                    (14 244)        (12 332)
NET CASH UTILISED                                (106 880)       (2 853)
DIVIDENDS PAID                                   (4 427)         (3 791)
INVESTED IN PROPERTY, PLANT AND

EQUIPMENT AND INVESTMENTS                        (8 890)         (25 645)
SHARE CAPITAL ISSUED                             30              149

NET BORROWINGS INCREASED                         (120 167)       (32 140)
NOTES
1. COMMENTARY ON RESULTS

IN THE LAST FEW MONTHS, YOUR COMPANY HAS BEEN TRADING AT A LOSS AS A RESULT OF
THE ASIAN CRISIS, WEAKER LOCAL DEMAND, A SIGNIFICANT INCREASE IN COMPETITION
AND THE REMOVAL OF THE GENERAL EXPORT INCENTIVE SCHEME. THIS HAS CONTRIBUTED TO
AN OVER-INVESTMENT IN INVENTORIES WITH A RESULTANT INCREASE IN INTEREST BEARING
DEBT TO UNACCEPTABLE LEVELS.

YOUR DIRECTORS HAVE IMPLEMENTED A WIDE-RANGING PLAN TO RETURN THE GROUP TO
PROFITABILITY AND TO REDUCE DEBT. ACTION STEPS INCLUDE:

 - RATIONALISATION OF THE GROUP OWNED WORLD-WIDE DISTRIBUTION NETWORK AND
EXPANSION OF THE INDEPENDENT DEALER NETWORK;
 - SIMPLIFYING THE PRODUCT RANGE;
 - DISPOSAL OF LOW YIELDING PROPERTY ASSETS;

 - ORGANISATION RESTRUCTURING AND A MOVE TOWARDS MULTI-DISCIPLINED PRODUCT
TEAMS;

 - MEASURES TO DRASTICALLY REDUCE OVERHEAD COSTS, WITHOUT RETRENCHMENTS OR A
REDUCTION IN THE LEVEL OF SERVICE TO CUSTOMERS; AND

 - IMPROVED TECHNIQUES FOR MORE EFFICIENT MANAGEMENT OF WORKING CAPITAL.
OVER THE NEXT TWO YEARS, IT IS EXPECTED THAT SAVINGS WILL BE GENERATED FROM OUR
WORLD CLASS ORGANISATION INITIATIVE.
2. DIVIDEND

IN VIEW OF THE POOR FINANCIAL RESULTS AND NEGATIVE CASH FLOW, THE BOARD OF
DIRECTORS HAS DECIDED NOT TO DECLARE A DIVIDEND FOR THE TEN-MONTH PERIOD.
3. CHANGE IN ACCOUNTING POLICY

AS ANNOUNCED WITH OUR HALF YEAR RESULTS TO 31 AUGUST 1997 THE GROUP CHANGED ITS
ACCOUNTING POLICY FOR THE EFFECT OF CHANGES IN FOREIGN EXCHANGE RATES. THIS
CHANGE WAS IN RESPONSE TO THE INTERNATIONAL ACCOUNTING STANDARD IAS 21 AND THE
SOUTH AFRICAN EXPOSURE DRAFT ED 109. COMPARATIVE FIGURES FOR FEBRUARY 1997 HAVE
ACCORDINGLY BEEN RESTATED.

THE CHANGE TO FEBRUARY 1997 HAS BEEN TO DECREASE INCOME AFTER TAXATION BY R12
812 000, DECREASE RETAINED INCOME BY R16 776 000, DECREASE INVENTORY BY R3 317
000 AND INCREASE PAYABLES BY R18 033 000.
ON BEHALF OF THE BOARD
H J BUTTERY                G W BELL
CHAIRMAN                   CHIEF EXECUTIVE
DIRECTORS

GW BELL, PA BELL, PC BELL, HJ BUTTERY, MA CAMPBELL, DI CAMPBELL (ALT), GP
HARRIS, RD MARCUS*, M MABUYAKHULU*, PJC HORNE*, DJJ VLOK* (*NON-EXECUTIVE
DIRECTORS)