ILLOVO SUGAR LIMITED - SALE OF GLEDHOW SUGAR MILL, REFINERY AND CANE GROWING

ILLOVO SUGAR LIMITED - SALE OF GLEDHOW SUGAR MILL, REFINERY AND CANE GROWING    
ESTATES TO A BEE COMPANY AND WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT              
ILLOVO SUGAR LIMITED                                                            
(Incorporated in the Republic of South Africa)                                  
Company registration number 1906/000622/06                                      
Share Code: ILV                                                                 
ISIN: ZAE000003547                                                              
("Illovo Sugar" or "the group")                                                 
SALE OF GLEDHOW SUGAR MILL, REFINERY AND CANE GROWING ESTATES TO A BEE COMPANY  
AND WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT                                       
1.0  Introduction                                                               
Illovo Sugar announced the sale of its Gledhow sugar operations to a broad-based
BEE company on 17 May 2004 ("the transaction").                                 
As explained in the announcement, the financial effects of the transaction were 
not provided due to the imminent release of the group"s results for the year    
ended 31 March 2004.                                                            
2.0  Financial effects                                                          
The group"s final results having been published on 19 May 2004, the financial   
effects of the transaction, based on the group"s audited results for the year   
ended 31 March 2004, are set out below:                                         
                              Before     Adjusted    After      % change        
                              (cents per (cents per  (cents per                 
                              share)     share)      share)                     
Pro forma effect on the net                                                     
assets and net tangible                                                         
assets of the group           387,1      53,8        440,9      +14%            
1. The net asset and net tangible asset value per share in the "After" column is
calculated as if the transaction had occurred on 31 March 2004.                 
The impact of the transaction on the historical earnings and headline earnings  
per share of the group is not significant.  The value of net assets subject to  
the transaction is R 121,3 million.                                             
3.0  Withdrawal of cautionary announcement                                      
The financial effects of the transaction having now been provided, the          
cautionary announcement included in the announcement of 17 May 2004 is hereby   
withdrawn.                                                                      
4.0  Condition precedent                                                        
As advised in the earlier announcement, the transaction is subject to the       
approval of the Competition Authority, and shareholders will be advised once    
this condition precedent is fulfilled.                                          
Mount Edgecombe                                                                 
19 May 2004                                                                     
Sponsor                                                                         
Cazenove                                                                        
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