MASSMART HOLDINGS LIMITED - UPDATE ON THE MAKRO WOODMEAD FIRE

PRESS RELEASE

The following developments have taken place since the company's last
announcement.

The fire smouldered during Monday 7th and Tuesday 8th May 2001, delaying the
forensic experts representing the South African police and the insurers.
Since then they have concluded their investigations into the cause of the
fire.  Final reports on the cause of the fire have yet to be received by the
company but Mr. Francois Bekker of the police forensic unit advised the
Citizen that an electrical short or a chemical ignition in the area of the
swimming pool chemicals could have started the fire.  There was no evidence
of arson.

The insurers have given permission for the building and its contents to be
demolished.  This will enable an evaluation of the damage to the foundations
and flooring.

Architects and a team of supporting professional consultants have been
retained to advise on the construction of the new building, which will be an
almost exact replica of the one destroyed.  The construction contract will
be awarded shortly, with a view to opening the store as soon as possible.
Internal investigations have produced evidence of regular maintenance and
testing of fire alarms and fire extinguishing systems by Makro employees and
designated external experts.   Most recently a full check of the sprinkler
system was conducted on the 25th April 2001 and a check of the smoke alarm
system was conducted on the 2nd May 2001, at which times both were found to
be fully operative.

Numerous meetings have been conducted with and between representatives of
the company, the fire department, the loss adjusters and the insurers.
On Tuesday 22nd May 2001, the final report by the loss adjusters was sent to
the insurers who are expected to immediately forward the report to
reinsurers in Europe and the United States.

A response from the insurers is expected within a week to 10 days.

The company has no reason to anticipate a repudiation of the claim, which
fully covers the loss of assets and the loss of profits caused by the fire.
As a precautionary measure, experts have been commissioned to evaluate the
fire protection equipment in all Makro stores.

Customers have been advised of how to process queries and returns, and have
been requested and encouraged to use alternative Makro outlets or contact
our tollfree number 0800113840