COURT OF APPEAL UPHOLDS YORKCOR'S CLAIMS AGAINST GOVERNMENT

PRESS RELEASE

THE SUPREME COURT OF APPEAL HAS DISMISSED AN APPEAL BY THE GOVERNMENT FROM THE
PRETORIA HIGH COURT, AWARDING DAMAGES TO YORKCOR OPERATING SUBSIDIARY YORK
TIMBERS LIMITED, FOR BREACHES OF ITS "EVERGREEN" SAWLOG CONTRACT, WITH INTEREST
AND COSTS. THE AMOUNT INVOLVED EXCEEDS R5 MILLION.

IN A SEPARATE APPEAL, THE GOVERNMENT WAS ORDERED TO OFFER YORK TIMBERS, FOR
SALE AND DELIVERY, THE ENTIRE VOLUME OF LOGS AVAILABLE FROM NORMAL

SILVICULTURAL OPERATIONS IN THREE CONTRACT PLANTATIONS OVER A PERIOD OF FIVE
YEARS TO 31 DECEMBER 1999. THE JUDGMENT STATES, "TIME HAS OVERTAKEN THE ISSUE
IN SO FAR AS THAT PARTICULAR FIVE-YEAR PERIOD IS CONCERNED, BUT THE ISSUE HAS
NOT BECOME ACADEMIC BECAUSE IT WILL ARISE REPEATEDLY WHENEVER A FURTHER
FIVE-YEAR CYCLE IS DUE TO COMMENCE."  THE ORDER REQUIRES THAT THE OFFER SPECIFY
THE VOLUME IN CUBIC METRES.

THE LEGAL ACTION WAS INSTITUTED IN 1994 WHEN THE GOVERNMENT SOUGHT TO HAVE THIS
LONG-TERM SAWLOG CONTRACT DECLARED VOID FOR VAGUENESS. THE HIGH COURT REJECTED
THE GOVERNMENT'S CLAIM AND REFUSED LEAVE TO APPEAL. YORKCOR THEN

COUNTER-CLAIMED DAMAGES AND AN ORDER FOR SPECIFIC PERFORMANCE WAS GRANTED, TO
MAKE THE OFFER OF THE ENTIRE VOLUME AVAILABLE, SUBJECT TO A FIXED MINIMUM.
ISSUED FOR  :  THE YORK TIMBER ORGANISATION LIMITED (YORKCOR)

CONTACT     :  SOLLY TUCKER   (012) 804 9730    CELL 083 456 9900
FAX NO.     :  (012) 804 8611
ISSUED BY   :  TISH STEWART PR ASSOCIATES

CONTACT     :  TISH STEWART  (011) 325 4195  CELL 082 443 6399
FAX NO.     :  (011) 325-4199
E-MAIL      :  TISH@TSPR.CO.ZA
DATE        :  18 JANUARY 2001