Firstrand Limited - Announcement

FIRSTRAND LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1966/010753/06)
Share code: FSR
ISIN: ZAE 000014973
Acquisition of NBS Home Loan Book
Introduction

RMB Corporate Finance is authorised to announce that agreement has been
reached in terms of which FirstRand Bank Limited ("FirstRand") will acquire
from BoE Limited ("BoE") a retail residential mortgage book (the "Home Loan
Book") ("the transaction").
Rationale for the transaction

The retail division of FirstRand has been underrepresented in its share of
the South African residential mortgage market, and for this reason, the
acquisition provides an excellent strategic fit and satisfies the objective
of increasing representation in this market segment.  The transaction will
increase FirstRand's home loan market share from 10% to approximately 16%,
which is closer to FirstRand's natural market share of around 20%.

FNB HomeLoans, the unit established three years ago to focus on this market
segment, has during this period substantially improved its new business
volumes, service levels and non-performing loans position and is well poised
to absorb the transaction.  Whilst organic growth has been successful, the
transaction provides a significant opportunity for FNB HomeLoans to leverage
off its existing infrastructure and expertise.

FirstRand group's positioning as an integrated financial services provider
will enable it to effectively utilise the acquired customer base.

NBS will continue to use their considerable experience and relationships in
the mortgage market to establish a mortgage origination business which will
generate new home loan business for FNB HomeLoans on a non-exclusive basis.
Description of the assets being acquired

As at 28 February 2002, the Home Loan Book amounted to approximately R11,9
billion, including R679 million relating to securitised home loans purchased
from Saambou Holdings Limited.

FirstRand has only acquired the Home Loan Book and has not acquired NBS, a
division of BoE Bank Limited, as a going concern nor has it acquired NBS'
properties in possession.

The mortgages are primarily in metropolitan South Africa, spread

geographically in the following principal areas: 39% in Gauteng, 27% in
KwaZulu-Natal and 19% in the Western Cape.

FirstRand has agreed to purchase the related Home Owners Comprehensive
insurance portfolio from BoE.
Salient terms of the transaction

The total purchase consideration will be R11,9 billion in cash. The

consideration will be settled by an initial payment of R5,0 billion,

followed by a maximum of seven further monthly instalments of approximately
R1,0 billion each per month until the full purchase consideration has been
paid. FirstRand will pay interest on the outstanding amounts from the
effective date at a rate of interest of 0.2% over the South African Repo
rate.

The purchase consideration will be adjusted for cash movements up to the
effective date.
The effective date and condition precedent

The transaction has received the necessary regulatory approvals.  The only
remaining condition to be fulfilled is completion of legal documentation,
which is expected to be finalised within days.  BoE has agreed to assist in
the administration and collections of the Home Loans Book to ensure an
efficient handover to FirstRand and to minimise disruption for clients.
Sandton
14 March 2002
Merchant bank and sponsor to FirstRand  Attorneys
Limited
Rand Mertchant Bank
A division of FirstRand Bank Limited
Corporate Finance