METROPOLITAN, NAIL AND SANLAM DISCONTINUE MERGER TALKS

MONDAY, 18 SEPTEMBER 2000

METROPOLITAN, NAIL AND SANLAM TODAY ANNOUNCED THAT THEY HAVE DISCONTINUED
DISCUSSIONS REGARDING A PROPOSAL TO MERGE THEIR FINANCIAL SERVICES ACTIVITIES.
THE PARTIES DISCLOSED IN JUNE THAT THEY WERE ENGAGED IN SUCH TALKS.

IN A JOINT STATEMENT THEY SAID THAT THE DUE DILIGENCE INVESTIGATIONS PERFORMED
ON METROPOLITAN (IN WHICH NAIL HAS A 51% SHAREHOLDING) AND SANLAM WERE
SATISFACTORY.  HOWEVER, THE COMMERCIAL BENEFITS OF THE MERGER ON THE BASIS
ENVISAGED BY THE COMPANIES WERE NOT AS COMPELLING AS INITIALLY EXPECTED.
THE DECISION NOT TO PROCEED HAS FURTHER BEEN INFLUENCED BY THE SUDDEN SERIOUS
ILLNESS OF SANLAM'S EXECUTIVE CHAIRMAN, MARINUS DALING, WHICH HAS INCREASED THE
RISKS FOR A SUCCESSFUL IMPLEMENTATION OF THE MERGER.

THE THREE PARTIES CONFIRMED THAT THE DECISION TO END THE DISCUSSIONS WAS
MUTUAL, AND THAT A VERY GOOD RELATIONSHIP CONTINUES TO EXIST BETWEEN THEM AFTER
THIS PERIOD OF DELIBERATIONS.

INDIVIDUALLY THEY REMAIN FIRMLY COMMITTED TO THE VISION OF FURTHER DEVELOPING
INTO TRULY SOUTH AFRICAN FINANCIAL SERVICES COMPANIES, WITH STRONG EMPOWERMENT
CHARACTERISTICS.
ENQUIRIES:

METROPOLITAN  :  PETER DOYLE, GROUP MANAGING DIRECTOR, TEL (021) 940-5681
NAIL          :  ADV. DIKGANG MOSENEKE, ACTING CHAIRMAN AND CHIEF EXECUTIVE,
                 TEL. (011) 463-1744

SANLAM        :  GEORGE RUDMAN, ACTING CHIEF EXECUTIVE TEL. (021) 947-3323
JOINTLY ISSUED BY:  SUE SNOW, METROPOLITAN (021) 940-6119, NONIE MOKOSE,
NAIL (011) 463-1744 AND FRANS VAN RENSBURG, SANLAM (021) 947-4893