Group Five limited - Announcement

Group Five limited - Announcement                                               
Group Five Limited                                                              
(Registration Number: 1969/000032/06)                                           
(Incorporated in the Republic of South Africa)                                  
Share Code: GRF      ISIN Code: ZAE 000027405                                   
("the company or Group")                                                        
GROUP FIVE ANNOUNCEMENT                                                         
Group Five today (15 May 2002) made the following announcements:                
MANUFACTURING                                                                   
At the interim stage, Group Five reported that the problems in both Everite     
and AC Pipes remained a cause for concern in the short to medium term and       
that the Group would provide the market with an update in May 2002 on           
developments at its manufacturing business units, which contribute about 15%    
to the Group`s turnover.                                                        
Everite Building Products                                                       
The benefits of the single site project and refurbishment at Kliprivier are     
now becoming evident, with production improving on a weekly basis.  New         
operational management has been entrenched and has played a meaningful role     
in achieving higher levels of production efficiency.  Recent appointments       
have further strengthened the team.                                             
Vaal Sanitaryware                                                               
Vaal`s profitability continues to grow in line with that achieved at interim    
result time.                                                                    
AC Pipes                                                                        
As indicated in February, AC Pipes has been downsized and production has now    
stopped.  Whilst the company will continue to trade, operations have been       
drastically reduced and future cash flows are expected to be positive.          
Group Five Pipe                                                                 
The South African operation has been mothballed.  Going forward, the Group      
will focus on its Saudi Arabian operation, which shows strong growth            
potential.                                                                      
DPI Plastics                                                                    
Despite difficult trading conditions, the company continues to deliver          
expected bottom line performance.                                               
"We have now downsized or closed operations with limited potential and          
focused on turning around the other businesses, although it took longer than    
anticipated.  We have strong management in place in our continuing              
operations and look forward to improved performance in the future," said        
Group Five Ceo Mike Lomas.                                                      
RESIGNATION                                                                     
The Group also announced the Barry van Wyk, the MD of Infrastructural           
Development Services, has resigned from the Group and from the Board.  He       
will be leaving the Group at the end of June 2002 to start his own business.    
His services will still be available on a consulting basis thereafter.          
The business unit has a full order book, which will be managed by the           
remaining team who will report directly to the Group`s Executive Director of    
Finance, Howard Turner, until a successor is appointed.                         
15 May 2002                                                                     
Sponsor                                                                         
PricewaterhouseCoopers Corporate Finance (Pty) Ltd                              
Date: 15/05/2002 10:48:57 AM Produced by the SENS Department