TRUWORTHS TO WRITE OFF SPORTSGIRL ASSETS

13 JANUARY 1999
TRUWORTHS TO WRITE OFF SPORTSGIRL ASSETS

TRUWORTHS INTERNATIONAL LIMITED  (TRUWORTHS) SAID TODAY IT WOULD WRITE OFF THE
NET ASSETS OF ITS AUSTRALIAN SUBSIDIARY, SPORTSGIRL SPORTSCRAFT GROUP PTY LTD
(SPORTSGIRL), AMOUNTING TO APPROXIMATELY A$27 MILLION (R109 MILLION), IN ITS
INTERIM FINANCIAL STATEMENTS FOR THE PERIOD TO DECEMBER 31, 1999.

IT ALSO CONFIRMED THAT, IN ACCORDANCE  WITH GENERALLY ACCEPTED ACCOUNTING
PRACTICE, THE TRADING RESULTS OF SPORTSGIRL FOR THIS PERIOD, WOULD BE DISCLOSED
AS DISCONTINUING OPERATIONS. COMPARATIVE FIGURES WOULD BE RESTATED ACCORDINGLY.
TRUWORTHS SAID THE WRITE-OFF  OF ASSETS IN SPORTSGIRL, AS AN EXCEPTIONAL ITEM,
WOULD NOT AFFECT INTERIM HEADLINE EARNINGS PER SHARE. SPORTSGIRL  WAS PLACED IN
VOLUNTARY ADMINISTRATION LAST NOVEMBER AFTER WORSE-THAN-EXPECTED RESULTS
PROMPTED A REVIEW OF TRUWORTHS' INVESTMENT.

TRUWORTHS SAID ALTHOUGH PROCEEDS WERE EXPECTED FROM THE SALE OF SPORTSGIRL
BUSINESS UNITS,  THE WRITE-OFF WAS PROMPTED BY UNCERTAINTY OVER THE AMOUNT OF
THESE PROCEEDS AND THE CONSEQUENT NEED FOR PRUDENCE IN PRESENTING THE INTERIM
RESULTS. TO DATE, THE SALES OF THE SPORTSGIRL AND  DAVID LAWRENCE CHAINS HAVE
BEEN CONCLUDED, AND NEGOTIATIONS ARE CONTINUING FOR THE SALE OF THE SPORTSCRAFT
CHAIN, THE MANUFACTURING ARM, AYWON, AND THE NEW ZEALAND STORES.

TRUWORTHS SAID THE PROCEEDS FROM THE SALES WOULD BE SET OFF AGAINST THIS
WRITE-OFF IN THE RESULTS FOR THE YEAR TO JUNE 30, 2000, PROVIDED THE PROCEEDS
HAD BEEN RECEIVED BY THAT DATE.

THE COMPANY SAID APPROVALS WERE IN PLACE TO USE EXISTING LOCAL CASH RESOURCES
TO SETTLE  THE GUARANTEED FOREIGN BANK LOAN OF SPORTSGIRL. THIS AMOUNTED TO
APPROXIMATELY  A$42 MILLION (R169 MILLION).  NOTWITHSTANDING THIS, TRUWORTHS
WOULD STILL HAVE ADEQUATE RESOURCES FOR ITS WORKING CAPITAL REQUIREMENTS.
THE RAPID PROGRESS MADE WITH THE SPORTSGIRL DISPOSAL WAS ALLOWING GREATER
MANAGEMENT FOCUS ON THE SOUTH AFRICAN BUSINESS AND INTERNATIONAL FRANCHISE
OPERATIONS.

THE INTERIM REPORT IS SCHEDULED TO BE RELEASED ON FEBRUARY 17.
-ENDS -
ISSUED FOR TRUWORTHS INTERNATIONAL LTD
BY DE KOCK & KERKHOFF COMMUNICATION CONSULTANTS

INQUIRIES CHRIS DURHAM/WAYNE VAN DER MERWE 021-460-7502
                       MIKE KERKHOFF 021-424-5280