AECI CAUTIONARY ANNOUNCEMENT

AECI LIMITED
(INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA)
(REGISTRATION NUMBER 04/02590/06)
("AECI")
CAUTIONARY ANNOUNCEMENT

AECI IS CURRENTLY INVOLVED IN NEGOTIATIONS WITH CHEMICAL SERVICES LIMITED
(CHEMSERVE) TO DISPOSE OF CERTAIN OF ITS SPECIALTY CHEMICAL BUSINESSES, WHICH,
IF SUCCESSFULLY CONCLUDED, COULD HAVE AN EFFECT ON THE PRICE AT WHICH AECI
SHARES TRADE ON THE JOHANNESBURG STOCK EXCHANGE.

THE ASSETS UNDER DISCUSSION ARE INDUSTRIAL URETHANES, KYNOCHEM, AECI AROMA AND
FINE CHEMICALS, WHICH ARE DIVISIONS OF AECI, AND AECI'S 80% INTEREST IN AECI
COATINGS (PROPRIETARY) LIMITED. THE AGGREGATE DISPOSAL CONSIDERATION IS
ESTIMATED TO EXCEED R300 MILLION WHICH WOULD BE SETTLED PARTLY IN CASH AND
PARTLY BY THE ISSUE OF CHEMSERVE SHARES.

AECI SHAREHOLDERS ARE ACCORDINGLY ADVISED TO EXERCISE CAUTION IN DEALING IN
THEIR SHARES UNTIL A FURTHER ANNOUNCEMENT IS MADE.
SANDTON
27 OCTOBER 2000
SPONSORING BROKER
CHASE
MEMBER OF THE JOHANNESBURG STOCK EXCHANGE