STATEMENT ISSUED BY MURRAY & ROBERTS

MURRAY & ROBERTS HOLDINGS LIMITED
18 DECEMBER 2000

AWI CANADA (AWIC) HAS OBTAINED AN ORDER OF THE ONTARIO SUPERIOR COURT OF
JUSTICE UNDER THE COMPANIES' CREDITORS ARRANGEMENT ACT (CCAA).

THE STATEMENT ISSUED BY MURRAY & ROBERTS ON FRIDAY, 15 DECEMBER 2000 REGARDING
THIS MATTER, IS UPDATED AS FOLLOWS.

WE HAVE STATED PREVIOUSLY THAT MURRAY & ROBERTS HAS MADE A COMMITMENT TO
FINDING A STRATEGIC SOLUTION FOR ITS AWI GROUP (AWI). AT 30 JUNE 2000, AN
IMPAIRMENT WRITE-DOWN WAS TAKEN IN RESPECT OF AWI'S ASSET VALUE IN ANTICIPATION
OF A SALE WITHIN THE CURRENT FINANCIAL YEAR.

A SERIES OF RIGOROUS INTERVENTIONS TO SUPPORT AWI CANADA (AWIC) OVER AN
EXTENDED PERIOD HAVE PROVED UNSUCCESSFUL AND AWIC NOW PRESENTS AN OBSTACLE TO
THE PROCESS OF FINDING A STRATEGIC SOLUTION FOR AWI.

A SUDDEN DETERIORATION IN AWIC'S PERFORMANCE SINCE THE START-UP AFTER THE
SUMMER SHUT-DOWN IN AUGUST HAS RESULTED IN A DECISION NOT TO ADVANCE FURTHER
FUNDING TO SUPPORT AWIC'S CAPITAL AND OPERATING CASH REQUIREMENTS. THIS
DECISION IS INTENDED TO LIMIT ANY FURTHER FINANCIAL IMPACT ON MURRAY & ROBERTS.
AS A CONSEQUENCE OF THE DECISION, AWIC HAS SOUGHT AND OBTAINED AN ORDER OF THE
ONTARIO SUPERIOR COURT OF JUSTICE UNDER THE COMPANIES' CREDITORS ARRANGEMENT
ACT (CCAA). THE CCAA IS RECOGNISED IN CANADA AS A RESPONSIBLE PROCEDURE TO
RESOLVE MATTERS OF THIS NATURE.

THE ORDER STAYS LEGAL PROCEEDINGS AGAINST AWIC FOR AN INITIAL PERIOD OF 27 DAYS
AND AUTHORISES THE FILING OF A PLAN OF COMPROMISE OR ARRANGEMENT BY THE COMPANY
AND ITS CREDITORS. DELOITTE & TOUCHE HAS BEEN APPOINTED MONITOR UNDER THE CCAA
ORDER. THE ORDER PERMITS AWIC TO CONTINUE ITS OPERATIONS DURING THIS PROCESS.
AWIC SUPPLIES ALUMINIUM ALLOY WHEELS TO GENERAL MOTORS CORPORATION, VOLKSWAGEN
AND HONDA FOR VARIOUS CAR AND TRUCK MODELS IN THE NORTH AMERICAN MARKET.
AWIC PRESIDENT, ANDREW LINLEY SAID: "THE COURT ORDER DOES NOT HAVE ANY
IMMEDIATE IMPACT ON THE AWI CANADA'S ABILITY TO SERVICE ITS CUSTOMERS OR PAY
ITS EMPLOYEES.

"THE CO-OPERATION OF ALL STAKEHOLDERS IN THE DEVELOPMENT OF A NEW BUSINESS PLAN
IS ESSENTIAL TO CREATE VIABLE OPTIONS FOR THE BUSINESS AND AVOID THE POSSIBLE
CLOSURE OF THE BARRIE PLANT," LINLEY SAID.

MURRAY & ROBERTS CHIEF EXECUTIVE, BRIAN BRUCE SAID: "WE HAVE INVESTED

SIGNIFICANT RESOURCE AND EFFORT INTO THE CANADIAN WHEELS BUSINESS OVER THE PAST
18 MONTHS. IT HAS BECOME CLEAR THAT NO SUSTAINABLE PERFORMANCE WILL BE
FORTHCOMING FROM THE PLANT WITHOUT RESTRUCTURING AND THE SUPPORT OF CUSTOMERS
AND THE TRADE UNION. WE BELIEVE THAT WE HAVE NOW TAKEN RESPONSIBLE ACTION
REGARDING AWI CANADA THAT IS IN THE BEST INTERESTS OF OUR SHAREHOLDERS AND ALL
OTHER STAKEHOLDERS.

"OUR EXPECTATION IS THAT THE CCAA PROCESS WILL PROVIDE A STABLE ENVIRONMENT,
OVER A LIMITED TIME-FRAME, FOR THE COMPANY TO REORGANIZE ITSELF IN TERMS OF THE
ORDER OF THE COURT. WE WILL CONTINUE WITH OUR STRATEGY TO PURSUE A SALE OF THE
BUSINESS IN THE BEST INTERESTS OF ALL STAKEHOLDERS," HE SAID.

BRUCE ADDED THAT THE OTHER AWI PLANTS IN SOUTH AFRICA AND THE UNITED KINGDOM
ARE OPERATING SUCCESSFULLY AT FULL CAPACITY AND ON AN INTEGRATED BASIS.
ENDS