MURRAY & ROBERTS HOLDINGS LIMITED - PROFIT WARNING AND CAUTIONARY

(INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA)
(REGISTRATION NUMBER 05/29826/06)
("THE GROUP")
PROFIT WARNING AND CAUTIONARY ANNOUNCEMENT

SHAREHOLDERS ARE ADVISED THAT THE RESULTS OF THE GROUP'S TRADING FOR THE FIRST
QUARTER WERE BELOW BUDGET AND FORECASTS INDICATE THE LIKELIHOOD OF A LOSS BEING
RECORDED FOR THE HALF YEAR TO 31 DECEMBER 1998.

NOTWITHSTANDING THE ABOVE, SHAREHOLDERS SHOULD NOTE THAT MURRAY & ROBERTS
LIMITED HAS ADVANCED PLANS FOR SUBSTANTIAL RESTRUCTURING DESIGNED TO IMPLEMENT
THE PREVIOUSLY STATED INTENTION OF FOCUSING ON THE CORE OPERATIONS OF THE GROUP
WHICH CONTINUE TO TRADE SATISFACTORILY. THE GROUP'S LISTED SUBSIDIARY, UNITRANS
LIMITED, IS ON TRACK TO ACHIEVE ITS OBJECTIVES FOR THE YEAR. FURTHERMORE,
SHAREHOLDERS SHOULD NOTE THAT THE UNDERLYING NET ASSET VALUE OF THE GROUP IS
SUBSTANTIALLY ABOVE THE CURRENT MARKET PRICE.

IN THE LIGHT OF THE ABOVE, SHAREHOLDERS ARE URGED TO EXERCISE CAUTION IN
DEALING IN THEIR SHARES UNTIL A FURTHER ANNOUNCEMENT WHICH WILL BE MADE BEFORE
THE END OF JANUARY 1999.
BY ORDER OF THE BOARD
LJ LINDSAY
GROUP SECRETARY
14 DECEMBER 1998