TRANSPACO ANNOUNCEMENT

TRANSPACO LIMITED
(registration number 1951/000799/06)
("Transpaco")
ANNOUNCEMENT

Despite difficult trading conditions being experienced by the packaging
industry, all Transpaco's divisions except Plastafrica Wynberg and Perana
Plastics (which have incurred losses) continue to trade profitably.

In conjunction with Transpaco's auditors Ernst & Young, the investigation
into the incorrect accounting of values for certain assets and liabilities
in Plastafrica Wynberg referred to in the announcement of 30 March 2001 has
been completed.  It has been determined that the director responsible for
that division misstated certain assets and liabilities.  The necessary
adjustments to rectify the misstatements have been made.  The adjustments
total R13,5 million of which R4,8 million relates to years prior to the
current financial year.  Of the remaining R8,7 million, R6,0 million applies
to the six months ended 31 December 2000 and R2,7 million applies to the
three months ended 31 March 2001.

Transpaco has now ascertained that stock valued at R1 258 000 by the former
management of Perana Plastics at the date of acquisition is unrealisable.  A
further amount of R349 000 relating to prior year development costs have
been written off as the project did not materialise.

The effect of the adjustments and write-offs on Transpaco's income statement
and balance sheet reflecting the earnings and net asset value per share are
as follows -
INCOME STATEMENT

                                        Year ended        Six Months ended
                                        30 June 2000      31 December 2000
R'000                               Announced  Restated  Announced  Restated
Flexible division (Including

Plastafrica Wynberg)                7 393      2 610     3 611      (2 412)
Other divisions                     15 971     14 364    6 409      6 409
Income before taxation              23 364     16 974    10 020     3 997
Taxation                            6 818      5 571     2 385      1 401
Income after taxation               16 546     11 403    7 635      2 596
Exceptional item                    14 468     14 468    -          -
Net income                          31 014     25 871    7 635      2 596
Number of ordinary shares in issue
on which earnings per share are

based (000's)                       32 711     32 711    31 410     31 410
Earnings per share

- Basic (cents)                     94         79        24         8
- Headline (cents)                  50         34        24         8
ABRIDGED BALANCE SHEET

                                    30 June 2000         31 December 2000
R'000                               Announced  Restated  Announced  Restated
ASSETS

     Non-current assets             57 087     56 505    64 008     64 187
     Current assets                 85 584     79 976    117 323    105 692
TOTAL ASSETS                        142 671    136 481   181 331    169 879
EQUITY AND LIABILITIES

     Shareholders funds             71 919     66 776    75 129     64 947
     Non-current liabilities        17 509     17 509    24 099     23 657
     Current liabilities            53 243     52 196    82 103     81 275
TOTAL EQUITY AND LIABILITIES        142 671    136 481   181 331    169 879
Number of ordinary shares in issue

(000's)                             32 711     32 711    30 109     30 109
Net asset value per share (cents)   220        204       249        215
CASH FLOW        There are no material cash flow changes.

In order to restore the profitability of Plastafrica Wynberg and Perana
Plastics, the following corrective action has been implemented -
-  restructure of their operations

-  appointment of new management and key personnel
-  extensive cost reductions
-  review of pricing structure
-  consolidation of facilities

The losses of Plastafrica Wynberg and Perana Plastics together with the
adjustments and write-offs referred to above will result in the group's
consolidated profit for the year ending 30 June 2001 being substantially
less than for the preceding financial year.  However, the profitable

divisions within Transpaco, together with the corrective action at

Plastafrica Wynberg and Perana Plastics, should result in a material

improvement in the earnings per share for the financial year 1 July 2001 to
30 June 2002.