THE YORK TIMBER ORGANISATION LIMITED - MEDIA RELEASE

THE YORK TIMBER ORGANISATION LIMITED - MEDIA RELEASE                            
YORKCOR BACKS PAHARPUR IN BID FOR KOMATILAND FORESTRY PACKAGE                   
26 July 2002                                                                    
In his address to shareholders at Yorkcor`s 87th annual general meeting held in 
Pretoria today, chairman Solly Tucker announced that the company would be       
joining forces with Paharpur Cooling Towers of India in its bid for the valuable
Komatiland forestry package, 75% of which is up for privatisation.              
Paharpur currently enjoys reserve bidder status, advised Tucker. The company had
launched legal proceedings to strike down the award of the preferred bidder on  
the basis of alleged improper conduct on the part of key players in the process.
Since then the government has interrupted the privatisation process to determine
"the import of the recent media allegations of bribery and/or corruption        
pertaining to the preferred bidder and the chairman of the Bid Evaluation       
Committee."                                                                     
Tucker disclosed that after consultation with Yorkcor yesterday, Paharpur       
responded positively to the government`s request to extend the validity period  
of its offer until 21 August 2002.                                              
Tucker reminded shareholders that Yorkcor has been active in the privatisation  
process for the state`s forestry assets in Mpumalanga and Limpopo province, now 
known as the Komatiland package. Yorkcor had originally teamed up with the      
Lisbon listed timber products group, Sonae Industries, and black empowerment    
group Madiba Forestry Consortium, headed by Mathews Phosa, former premier of    
Mpumalanga, and Nthato Motlana, currently national chairman of the South African
Lumber Miller`s Association. The consortium received government approval for    
participation in 1999. Preferred bidder status was ultimately awarded to African
Forestry Corporation which subsequently changed its name to Zama Resources.     
The black empowerment group which is participating in Paharpur`s initiative is  
Sefateng, which represents a large body of former exiles and combatants in the  
struggle for democracy prior to 1994. 24% of the equity has been earmarked for  
this influential grouping led by Sipho Mseleku.                                 
Tucker said that the Komatiland forestry package represents a crucial resource  
sustaining irreplaceable jobs in rural areas, whilst the precious asset itself  
is deteriorating in the face of so many unanswered questions. For more than     
seven years the sawmilling industry has been struggling, particularly with its  
international competitiveness, through being hamstrung by costly uncertainties  
concerning resource.                                                            
Clearly Yorkcor had an interest in facilitating an early end to the             
uncertainness, said Tucker. "In recent days belated allegations have emerged in 
the media casting doubt on the integrity of Pahalpur`s bid. On the basis of full
and frank disclosures by our new associates, we have reason to believe that     
there is no substance in these diversionary attempts. We do not believe that    
vested interests should be allowed to frustrate a legitimate outcome," said     
Tucker.                                                                         
As previously reported to shareholders, Yorkcor itself had launched litigation  
to enforce orders of the High Court and the Supreme Court of Appeal which       
underpinned its sawlog entitlements.  A further cautionary announcement had been
released recently to advise that negotiations were continuing to reach agreement
for the amount of compensation payable for the termination of one of Yorkcor`s  
evergreen contracts in 2006. The government had agreed that compensation was    
due, with only the quantum to be determined, if not by agreement then by        
arbitration.                                                                    
Tucker said that Yorkcor`s interim report for the half-year to 30 June 2002     
would be issued shortly.                                                        
Ends                                                                            
ISSUED FOR:                   Yorkcor Limited                                   
CONTACT:                      Solly Tucker 012 804 9730  Cell: 082 579 0717     
FAX NO:                       012 804 8611                                      
E-MAIL:                       Sol@yorkcor.co.za                                 
ISSUED BY:                    TISH STEWART PR ASSOCIATES                        
CONTACT:                      Tish Stewart   011 325 4195   Cell:  082 443 6399 
FAX NO:                       011 325-4199                                      
E-MAIL:                       Tish@tspr.co.za                                   
DATE:                         26 July 2002                                      
Date: 26/07/2002 02:21:34 PM Supplied by www.sharenet.co.za                     
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