Illovo Sugar Limited - Further cautionary announcement

Illovo Sugar Limited - Further 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 announcements published on 14 February  
2006 and 10 March 2006, relating to two separate proposals to purchase a        
majority, but not all, of the shares of the company.                            
Illovo shareholders are advised that the first proposal has been received from  
Associated British Foods plc, a company which is listed on the London Stock     
Exchange and which owns 100% of British Sugar plc, and contemplates a cash offer
for 51% of Illovo"s shares.                                                     
The second proposal has been received from Tereos, Union de Cooperatives        
Agricoles ("Tereos"), a European agro-industrial cooperative group, and         
contemplates the transfer of Tereos" sugar assets in Brazil and Mozambique to   
Illovo, the consideration for which will be discharged by way of an issue of    
Illovo shares. The sale of the sugar assets will be made in conjunction with a  
partial offer to Illovo shareholders which, if implemented, would result in     
Tereos owning at least 51%, but not more than 75%, of Illovo"s shares.          
Both proposals envisage Illovo retaining its listing on the JSE Limited.        
Illovo is considering both proposals and accordingly Illovo shareholders are    
advised to continue to exercise caution when dealing in the company"s shares    
until a further announcement is made.                                           
Mount Edgecombe                                                                 
15 March 2006                                                                   
Investment bank                                                                 
Standard Bank                                                                   
Sponsor                                                                         
J.P. Morgan Equities Limited                                                    
Date: 15/03/2006 09:00:02 AM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department