LONRHO PLC - PROPOSED SALE OF PRINCESS HOTELS FOR US$540 MILLION

LONRHO PUBLIC LIMITED COMPANY

PROPOSED SALE OF PRINCESS HOTELS FOR US$540 MILLION

ON 11TH JUNE, 1998 LONRHO PUBLIC LIMITED COMPANY ("LONRHO") ANNOUNCED THAT IT
HAD ENTERED INTO A CONDITIONAL AGREEMENT TO SELL PRINCESS HOTELS TO CANADIAN
PACIFIC HOTELS & RESORTS INC. FOR A TOTAL GROSS CONSIDERATION OF US$540
MILLION. LONRHO IS TODAY ISSUING A CIRCULAR TO SHAREHOLDERS. INCLUDED IN THE
CIRCULAR IS NOTICE OF AN EXTRAORDINARY GENERAL MEETING TO BE HELD ON 16TH JULY,
1998 TO APPROVE THE DISPOSAL.
PRESS ENQUIRIES:

LONRHO                       NICHOLAS MORRELL         +44 171 201 6000
DEUTSCHE MORGAN GRENFELL     JOHN MCINTYRE            +44 171 545 8000
MORGAN GRENFELL & CO. LIMITED ("DEUTSCHE MORGAN GRENFELL"), WHICH IS REGULATED
IN THE UNITED KINGDOM BY THE SECURITIES AND FUTURES AUTHORITY LIMITED, IS
ACTING FOR LONRHO IN CONNECTION WITH THE MATTERS DESCRIBED HEREIN AND IS NOT
ACTING FOR ANY OTHER PERSON AND WILL NOT BE RESPONSIBLE TO ANYONE OTHER THAN
LONRHO FOR PROVIDING THE PROTECTIONS AFFORDED TO ITS CUSTOMERS OR FOR PROVIDING
ADVICE IN RELATION TO THE MATTERS DESCRIBED HEREIN.