SANLAM AND ABSA - ANNOUNCE FIRST STEP IN CO-OPERATION AGREEMENT

SANLAM AND ABSA - ANNOUNCE FIRST STEP IN CO-OPERATION AGREEMENT                 
ABSA Group Limited                                                              
JSE Share Code: ASA                                                             
ISIN: ZAE000013389                                                              
Sanlam Limited                                                                  
JSE Share Code SLM                                                              
ISIN: ZAE000028262                                                              
NEWS  RELEASE                                                                   
Date:     1 March 2004                                                          
SANLAM AND ABSA ANNOUNCE FIRST STEP IN CO-OPERATION AGREEMENT                   
Sanlam and Absa today announced the formation of a joint venture company that   
will offer home loans to Sanlam clients. This agreement follows the memorandum  
of understanding signed between Sanlam and Absa in September 2003, wherein it   
was envisaged that the two groups will develop business plans and structures to 
harness potential synergies through strategic business co-operation.            
The joint venture is based on Sanlam and Absa"s confidence in the future growth 
of the mortgage market and that a sustainable new home loan business could be   
built using the Sanlam brand, intermediaries and databases, together with Absa"s
mortgage and credit expertise and infrastructure.                               
Piet van der Walt, formerly of NBS and Nedcor, has been appointed managing      
director of the new company.                                                    
"As we said at the time of signing the memorandum, working closely with Absa    
would complement our existing product offering and will provide us with access  
to a number of key growth areas to continue to unlock shareholder value. The    
establishment of Sanlam Home Loans is in line with our strategy of improved     
client focus and follows careful planning to ensure positive financial outcomes 
for both groups," said Sanlam Group CEO, Dr Johan van Zyl.                      
Absa benefits directly from the agreement by earning income as the mortgage     
servicer and fees as the lead manager and arranger of the securitisation        
vehicles.  In addition, increased administration volumes give Absa the benefit  
of economies of scale.                                                          
Absa Group Chief Executive, Nallie Bosman, believes Sanlam Home Loans will pave 
the way for further joint ventures and co-operation in the banking arena.       
"Sanlam Home Loans is the first manifestation of Absa and Sanlam"s shared vision
to create profitable business solutions to meet customer needs.  It is an       
example of how Absa and Sanlam will in future leverage their strengths, working 
together to broaden both their market share, one step at a time," says Bosman.  
The intention is that Sanlam Home Loans (Pty) Ltd (SHL) will begin operations   
before the second half of the year..                                            
ISSUED JOINTLY BY SANLAM LIMITED AND ABSA GROUP LIMITED                         
For more information please contact:                                            
Piet van der Walt                                                               
Managing Director:  Sanlam Home Loans (Pty) Ltd                                 
Tel:  011 778 6000 or 082 802 1039                                              
Rachel Wall                                                                     
General Manager: Business Development & Planning: Absa Home Loans               
Tel:  011 350 4581 or 082 450 0850                                              
Anton Gildenhuys                                                                
Chief Executive:  Sanlam Client Solutions                                       
Tel:  021 947 6962   or 082 497 3976                                            
Date: 01/03/2004 02:00:03 PM Supplied by www.sharenet.co.za                     
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