FirstRand - Cautionary Announcement

FirstRand - Cautionary Announcement                                             
FirstRand Limited                                                               
(Incorporated in the Republic of South Africa)                                  
Registration number 1966/010753/06                                              
Share code: FSR       ISIN: ZAE000014973                                        
("FirstRand")                                                                   
Further cautionary announcement relating to FirstRand"s 10% Black Economic      
Empowerment ("BEE") transaction                                                 
Shareholders are referred to the cautionary announcement dated 4 November 2004  
in which FirstRand outlined its proposed BEE transaction (the "BEE              
transaction"). Subject to the fulfilment of certain conditions precedent, the   
Kagiso Trust, Mineworkers Investment Trust, WDB Trust and the FirstRand         
Empowerment Foundation, together with black South African FirstRand staff and   
non-executive directors, will acquire 9,6% of FirstRand"s issued ordinary share 
capital. An additional 0,4% of FirstRand"s issued ordinary share capital is     
already held by black staff, bringing FirstRand"s total direct black ownership  
to 10%.                                                                         
The BEE transaction comprises two components, namely:                           
*    the broad-based BEE groups referred to above which will collectively hold  
6,5% of FirstRand"s issued ordinary share capital ("the third party BEE         
component"); and                                                                
*    black South African FirstRand staff, through staff trusts, and black non-  
executive directors will hold in aggregate 3,5% of FirstRand"s issued ordinary  
share capital ("the FirstRand staff BEE component").                            
FirstRand is pleased to announce that the necessary commitments and approvals   
from various financial institutions for the funding of the third party BEE      
component have been secured. The drafting of the necessary legal agreements for 
such funding has commenced.                                                     
FirstRand, through its subsidiary FirstRand Bank Limited, intends to fund the   
FirstRand staff BEE component itself out of available resources. Accordingly,   
the BEE transaction is likely to be implemented in the first quarter of 2005.   
A detailed terms announcement will be published once the documentation relating 
to the BEE transaction and the associated third party funding has been          
finalised. This announcement will include an analysis of the economic           
cost/dilution of the BEE transaction to FirstRand shareholders.                 
In the interim, shareholders are advised to continue to exercise caution when   
dealing in their FirstRand shares until the announcement referred to above is   
made.                                                                           
Sandton                                                                         
20 December 2004                                                                
Merchant bank and sponsor                                                       
   RMB Corporate Finance                                                        
   A division of FirstRand Bank Limited                                         
Lead sponsor                                                                    
   PricewaterhouseCoopers                                                       
   Corporate Finance (Pty) Ltd                                                  
  (Registration number 1970/003711/07)                                          
Financial adviser to Kagiso Trust, Mineworkers Investment Trust and WDB Trust   
   ROTHSCHILD                                                                   
Date: 20/12/2004 10:01:32 AM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department