Illovo Sugar - Sale of Umfolozi sugar mill to a BEE company

Illovo Sugar - Sale of Umfolozi sugar mill to a BEE company                     
ILLOVO SUGAR LIMITED                                                            
(Incorporated in the Republic of South Africa)                                  
Company Registration number 1906/000622/06                                      
Share code ILV : ISIN  ZAE000003547                                             
("Illovo Sugar")                                                                
Sale of Umfolozi sugar mill to a BEE company                                    
1 Introduction                                                                  
Further to the announcement of 23 September 2004, shareholders are advised that 
Illovo Sugar has entered into a sale agreement with Umvoti Transport            
(Proprietary) Limited, a broad-based Black economic empowerment ("BEE") company 
("Umvoti"), in terms of which Illovo Sugar will, subject to the approval of the 
Competition Authority, sell its interests in the Umfolozi sugar mill            
("Umfolozi"), ("the transaction") with effect from midnight on 31 March 2005.   
The transaction will secure further BEE participation in the South African sugar
milling industry.                                                               
2 Financial effects                                                             
The transaction will have a favourable effect on Illovo Sugar"s headline        
earnings.  The impact of the transaction on net assets and net tangible assets  
per share is not significant.                                                   
3 Information on Umfolozi                                                       
Umfolozi is located on the north coast of KwaZulu-Natal, adjacent to Mtubatuba. 
Annually the mill crushes approximately 1.3 million tons of cane and produces   
around 150 000 tons of sugar, constituting some 6% of South Africa"s annual     
sugar production and 8% of the annual sugar output of the Illovo Sugar group.   
Currently Umfolozi employs 244 people in its sugar milling operations.          
Mount Edgecombe                                                                 
11 February 2004                                                                
Sponsor                                                                         
Cazenove                                                                        
Date: 11/02/2005 02:46:42 PM Supplied by www.sharenet.co.za                     
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