LONHRO PLC - ANNOUNCEMENT

LONRHO PLC
3 JULY 1998

FOLLOWING THE DEMERGER OF LONRHO AFRICA, STEPHEN WALLS HAS RETIRED AS A
NON-EXECUTIVE DIRECTOR OF LONRHO PLC WITH EFFECT FROM 3 JULY 1998. HE REMAINS A
NON-EXECUTIVE DIRECTOR OF LONRHO AFRICA WHICH, AS A RESULT OF THE DEMERGER, IS
A COMPANY COMPLETELY INDEPENDENT OF LONRHO PLC.
SIR JOHN CRAVEN, CHAIRMAN OF LONRHO PLC, SAID:

"STEPHEN WALLS JOINED THE BOARD AT A PARTICULARLY DIFFICULT TIME IN ITS
HISTORY. IN ADDITION TO HIS RESPONSIBILITIES AS A NON-EXECUTIVE DIRECTOR, HE
SERVED AS CHAIRMAN OF THE AUDIT COMMITTEE AND, MORE RECENTLY, PLAYED AN ACTIVE
ROLE IN CO-ORDINATING THE DETAILED AND COMPLEX WORK NECESSARY TO ALLOW THE
DEMERGER OF LONRHO AFRICA TO PROCEED AND WE ARE MOST GRATEFUL TO HIM FOR HIS
COMMITTED AND LOYAL SERVICE."

PETER HARPER, WHO HAS SERVED ON THE BOARD SINCE OCTOBER 1993, WILL REPLACE MR
WALLS AS CHAIRMAN OF THE AUDIT COMMITTEE, HAS BEEN APPOINTED DEPUTY CHAIRMAN OF
THE COMPANY AND NOMINATED AS THE "SENIOR NON-EXECUTIVE DIRECTOR" THUS BRINGING
LONRHO PLC INTO COMPLIANCE WITH THE RECOMMENDATIONS OF THE COMMITTEE ON
CORPORATE GOVERNANCE ("THE HAMPEL COMMITTEE").

TERENCE WILKINSON, AN EXECUTIVE DIRECTOR, HAS BEEN APPOINTED CHIEF OPERATING
OFFICER OF THE MINING ACTIVITIES OF LONRHO PLC (EXCLUDING LONRHO'S INVESTMENT
IN ASHANTI). LONRHO RECENTLY ANNOUNCED THE DISPOSAL OF PRINCESS HOTELS, WHICH
WILL BE PUT TO SHAREHOLDERS ON 16 JULY, THUS EFFECTIVELY COMPLETING THE
TRANSFORMATION OF LONRHO PLC FROM A BROADLY BASED CONGLOMERATE TO AN ACTIVELY
MANAGED MINING GROUP.