NAMPAK LIMITED - PRESS RELEASE

(INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA)
(REGISTRATION NUMBER 68/08070/06)
("NAMPAK")
PRESS RELEASE

NAMPAK INVOLVED IN SIX MONTHS OF INDUSTRY RATIONALISATION AND RE-FOCUS
IN THE FIRST HALF OF THE FINANCIAL YEAR NAMPAK HAS TAKEN POSITIVE ACTION TO
ADDRESS THE OVERCAPACITY AND NEED FOR RATIONALISATION IN THE PACKAGING
INDUSTRY, AND TISSUE INDUSTRY.

CHAIRMAN, BRIAN CONNELLAN, SAYS THAT THE ACQUISITION OF CROWN CORK OF SOUTH
AFRICA, THE CONSOLIDATION OF THE TISSUE INTERESTS OF NAMPAK, SWAZI PAPER AND
DYNAMO, AND THE ACQUISITION OF THE ALPHA GROUP'S PAPER CEMENT SACKS

MANUFACTURING ACTIVITIES, REPRESENTED INVESTMENTS WITH AN AGGREGATE VALUE, BY
WAY OF CASH AND EXCHANGE OF ASSETS, IN EXCESS OF R1 BILLION.

CONNELLAN CONFIRMED THAT THE CROWN DEAL INCLUDED A FORMAL TECHNOLOGY AGREEMENT
WITH THIS INTERNATIONALLY RENOWNED GROUP.  HE ALSO INDICATED THAT THE NEW
COMPANY HOUSING THE MERGED TISSUE BUSINESSES HAS GIVEN THE EMPOWERMENT GROUP
DYNAMO A SIGNIFICANT EQUITY INTEREST IN THE RESTRUCTURED INDUSTRY.

MANAGING DIRECTOR, TREVOR EVANS, INDICATED THAT AS THE ACQUISITION STRATEGY
UNFOLDED, THE GROUP ALSO REFOCUSED ON ITS CORE ACTIVITIES. JIFFY PACKAGING
(PROTECTIVE PACKAGING PRODUCTS) WAS SOLD AND HEADS OF AGREEMENT HAVE BEEN
SIGNED FOR THE DISPOSAL OF TWO SMALL NON-CORE ACTIVITIES.

FOR THE HALF YEAR TURNOVER GREW BY 1% TO R3,752 BILLION.  OPERATING PROFIT
DECLINED BY 12% TO R366,8 MILLION, INDICATING THE DIFFICULT MARKET CONDITIONS.
GOOD CASH MANAGEMENT, STRICT CONTROL OVER CAPITAL EXPENDITURE, A SIGNIFICANTLY
LOWER TAX RATE AND IMPROVED RESULTS FROM THE AFRICA INVESTMENTS RESULTED IN
HEADLINE EARNINGS PER SHARE INCREASING BY 9% TO 55,6 CENTS PER SHARE.

DIVIDENDS WERE INCREASED BY 9% TO 16,1 CENTS A SHARE.

EVANS SAYS THAT THE PACKAGING SECTOR EXPERIENCED LOW LEVELS OF DEMAND

THROUGHOUT, RESULTING IN MARGINS BEING UNDER PRESSURE. A SIGNIFICANT TURNAROUND
IN THE PERFORMANCE OF BLOWMOCAN IN THE U.K. CUSHIONED THE DOWNTURN IN DOMESTIC
BUSINESS.

AS FAR AS PAPER AND PRINTING WAS CONCERNED, HE SAYS THE MARKET REMAINED VERY
COMPETITIVE WITH MARGINS ALSO UNDER EXTREME PRESSURE.  THE EFFECTS OF THE
TISSUE RESTRUCTURE WILL BE SEEN ONLY IN THE SECOND HALF OF THE YEAR.

CONNELLAN SAYS THAT CONTINUING INTEREST RATE CUTS SHOULD PROVIDE SOME

STIMULATION TO THE ECONOMY, RESULTING IN LIMITED VOLUME GROWTH IN THE NEXT SIX
MONTHS.  THE CONSIDERABLE INVESTMENT IN ACQUISITIONS AND MERGERS WILL PROVIDE
SOME SUPPORT TO THE GROUP'S RESULTS DURING THE FORTHCOMING PERIOD, AND POSITION
THE GROUP MORE STRONGLY FOR THE NEXT FEW YEARS.

GIVEN A SUCCESSFUL ELECTION IN JUNE, AND ASSUMING NO MAJOR DISRUPTIONS TO THE
ECONOMY, HE SAYS THAT EARNINGS FOR THE FULL YEAR ARE EXPECTED TO SHOW REAL
GROWTH OVER THOSE FOR 1998.
6 MAY 1999
PRODUCED AND RELEASED BY NAMPAK LTD.

FOR FURTHER INFORMATION PLEASE CONTACT BRIAN CONNELLAN OR TREVOR EVANS ON (011)
444-7418.