Illovo Sugar Limited - Cautionary Announcement

Illovo Sugar Limited - Cautionary Announcement                                  
ILLOVO SUGAR LIMITED                                                            
(Incorporated in the Republic of South Africa)                                  
Company registration number 1906/000622/06                                      
Share Code: ILV  &  ISIN: ZAE000003547                                          
("Illovo" or "the company")                                                     
FURTHER CAUTIONARY ANNOUNCEMENT                                                 
Illovo shareholders are referred to the announcement published on 14 February   
2006 relating to a proposal to purchase a majority, but not all, of the shares  
of the company. This proposal contemplates a cash offer.                        
Further, Illovo shareholders are advised that a proposal has been received from 
a second potential offeror, which contemplates a sale of various sugar assets to
Illovo, the consideration for which will be discharged by way of an issue of    
Illovo shares and which, in conjunction with a partial offer to Illovo          
shareholders, will result in the offeror owning a majority but not all of the   
shares of the company.                                                          
Illovo shareholders are advised that both these proposals have been received    
from significant European sugar companies.                                      
Accordingly, shareholders should continue to exercise caution when dealing in   
the company"s shares until a further announcement is made.                      
Mount Edgecombe                                                                 
10 March 2006                                                                   
Investment bank                                                                 
Standard Bank                                                                   
Sponsor                                                                         
J.P. Morgan Equities Limited                                                    
Date: 10/03/2006 11:00:02 AM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department