TRUWORTHS SAYS "DEED" PROPOSED OVER SPORTSGIRL

TRUWORTHS INTERNATIONAL LTD SAID TODAY ITS AUSTRALIAN SUBSIDIARY, TARRA VALLEY
PTY LTD,  HAD PROPOSED  A DEED OF COMPANY ARRANGEMENT THAT WOULD SIGNIFICANTLY
ENHANCE DIVIDENDS TO CREDITORS OF SPORTSGIRL SPORTSCRAFT GROUP (PTY) LTD, WHICH
WAS PLACED UNDER VOLUNTARY ADMINISTRATION LAST NOVEMBER.

SUCH AN ARRANGEMENT IS A NEGOTIATED COMPROMISE ON THE DIVIDEND ACCEPTED BY
UNSECURED CREDITORS IN FULL AND FINAL SETTLEMENT OF THEIR CLAIMS.

TRUWORTHS SAID THE PROPOSAL HAD BEEN MADE IN THE INTERESTS OF CREDITORS AS A
WHOLE ON COMMERCIAL GROUNDS. IT WAS AWAITING THE REACTION OF THE ADMINISTRATORS
TO THE PROPOSAL, BUT EXPECTED IT TO BE SUPPORTED. THE PROPOSAL WOULD BE DEALT
WITH IN THE ADMINISTRATORS' SECOND REPORT TO CREDITORS, WHICH WAS IMMINENT.
IN FEBRUARY, THE ADMINISTRATORS ADVISED THAT SPORTSGIRL CREDITORS COULD EXPECT
BETWEEN 12 AND 23 CENTS IN THE AUSTRALIAN DOLLAR IF NO DEED OF COMPANY
ARRANGEMENT WAS PROPOSED AND THE COMPANY WAS FORCED INTO LIQUIDATION.

THE APPOINTMENT OF THE VOLUNTARY ADMINISTRATORS IN NOVEMBER CAME AFTER
WORSE-THAN-EXPECTED RESULTS PROMPTED A REVIEW OF TRUWORTHS' INVESTMENT.
TRUWORTHS SAID IN ITS 1999 ANNUAL REPORT THAT FINANCIAL AND OPERATING CONTROLS
AT SPORTSGIRL WERE FOUND TO BE INADEQUATE DURING THE YEAR-END PROCESSES. IN
OCTOBER, TRUWORTHS ENGAGED HINDAL CORPORATE TO SEEK BUYERS FOR THE BUSINESS
WHILE AT THE SAME TIME TAKING STEPS TO OBTAIN FURTHER FUNDING. IN NOVEMBER, THE
DIRECTORS OF SPORTSGIRL APPOINTED THE VOLUNTARY ADMINISTRATORS AFTER BEING
INFORMED BY TRUWORTHS THAT FURTHER FUNDING WOULD NOT BE PROVIDED BY IT.
THE NET ASSETS OF SPORTSGIRL, AMOUNTING TO SOME R110 MILLION, WERE WRITTEN OFF
IN TRUWORTHS' INTERIM FINANCIAL STATEMENTS FOR THE PERIOD TO DECEMBER 31, 1999.
TRUWORTHS SAID ANY DIVIDEND DISTRIBUTED BY THE ADMINISTRATORS FROM PROCEEDS OF
THE SALE OF SPORTSGIRL BUSINESS UNITS - THE SPORTSGIRL CHAIN, DAVID LAWRENCE
STORES, SPORTSCRAFT OUTLETS AND THE AYWON MANUFACTURING ARM - WOULD BE RECORDED
AS AN EXCEPTIONAL ITEM.

THE SPORTSGIRL OUTLETS IN NEW ZEALAND DID NOT FIND A BUYER AND THE BUSINESS IS
BEING WOUND DOWN.
- ENDS -
ISSUED FOR TRUWORTHS INTERNATIONAL LTD
BY DE KOCK & KERKHOFF COMMUNICATION CONSULTANTS
INQUIRIES           MICHAEL MARK 021-460-7910

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