Murray & Roberts - Consani Liquidation

Murray & Roberts - Consani Liquidation                                          
Murray & Roberts Holdings Limited                                               
(Incorporated in the Republic of South Africa)                                  
(Registration number 1948/029826/06)                                            
Share code: MUR  ISIN: ZAE000008983                                             
("Murray & Roberts")                                                            
Shareholders are advised that with the sanction of Murray & Roberts, the        
directors of Consani Engineering (Pty) Limited ("Consani"), a wholly-owned      
subsidiary within Murray & Roberts, have placed Consani into liquidation with   
immediate effect.                                                               
Apart from an exchange rate assisted result in the 2003 financial year, Consani 
has been under performance pressure for some time.  In spite of extensive       
restructuring over the past year, Consani has been unable to prove a robust     
business model for sustainable profitability. A thorough risk review of the     
business of Consani indicates that the SA Rand exchange rate to the US Dollar   
has the greatest impact on performance potential. The current expectation is    
that the SA Rand will not materially devalue against the US Dollar for some     
time. Customers have resisted increased prices and have responded by re-        
manufacturing their existing tank fleets to extend their useful life, and have  
actively sought Chinese manufacturers who have aggressively entered the market. 
Over 90% of Consani"s revenue is export sales.                                  
Based on these criteria the Board of Murray & Roberts has noted that Consani    
will not be able to continue as a viable business.                              
At 31 December 2004, Consani had fixed assets with a book value of R11,5        
million; debtors, stock and work in progress valued at R160 million and         
liabilities amounting to R216 million, of which R162 million is in loans from   
Murray & Roberts.                                                               
Murray & Roberts intends taking an impairment write-off on the loan account in  
the half-year results to 31 December 2004 as a non-operating expense.           
Consani"s trading loss for the half year will negatively impact headline        
earnings per share by approximately five cents per share.                       
Johannesburg                                                                    
28 January 2005                                                                 
Sponsor                                                                         
Merrill Lynch                                                                   
Date: 28/01/2005 12:33:09 PM Supplied by www.sharenet.co.za                     
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