Lonrho
(London)

Lonrho: Water Sector Update

SPONSOR WIRE

Lonrho Plc's bottled water division, Lonrho Spring's BVI, is pleased to announce substantial progress in its scheduled development of a pan African water business.

Since acquiring the technology and brand name of Swissta Holdings in May 2007, the company has subsequently become the market leader in Mozambique, is doubling the size of the plant in Kinshasa, DRC and is developing new water bottling plants in Luanda in Angola; Lubumbashi in the DRC; and Johannesburg in South Africa. Further projects undergoing feasibility studies include Libya, Nigeria, Ethiopia, Sudan, Kenya and Zimbabwe.

The sub Saharan water bottle market is estimated to be $ 2 billion and growing at 25% per annum

Project Updates :

Angola: Lonrho Springs Angola Lda has been established and registered, applications submitted to ANIP and a site acquired for the new plant in Caxito.

Hydrological surveys and water quality analysis has been completed. Angolan project managers Sul Engineering have been contracted and the site development and buildings have commenced construction. Equipment design and specifications are completed and tenders have been opened. Angolan brands have been designed and registered.

Mozambique: The existing water bottling plant has been relocated in April to a new larger facility with a greater water output. Having become the market leader in Mozambique, the company has expanded its product range and is supplying a greater variety of sizes of product, from pouches through to 20ltrs for which it has developed and distributes Swissta cooling dispensers. In April the company launched a range of flavored waters and sparkling waters onto the market.

DRC (Kinshasa): The size of the existing plant is currently being doubled to meet demand. New machinery for the expansion has been designed, specified, ordered and will be in production in June 2008.

DRC (Lubumbashi): Lonrho Springs DRC Sprl has been established and registered drilling and subsequent hydrological surveys and water quality analysis have been completed. The site development and buildings have commenced construction.

Equipment design and specifications are completed and tenders have been opened.

A local brand has been designed and registered.

South Africa: Site design and construction plans are completed and plant specifications and volumes have been agreed. Annual production quantities have been forecast and extraction permits applied for to increase existing production volumes. A new brand has been designed and developed for the premium water bottled market in the Gauteng region, which will concentrate on the reusableglass bottle restaurant, corporate and consume on site markets.

LONRHO ENQUIRIES

Lonrho Plc +44 (0)20 7016 5105

David Lenigas, Executive Chairman +44 (0)7881 825 378

Geoffrey White, Chief Executive Officer +44 (0)7717 307 308

Emma de Borchgrave, Executive Director +44 (0)7867 785 177

Pelham PR

Charles Vivian +44 (0) 20 7743 6672

+44 (0) 7977 297903

James MacFarlane +44 (0) 20 7743 6375

+44 (0) 7841 672831

Collins Stewart Europe : NOMAD to Lonrho

Hugh Field / Simon Alston +44 (0) 20 7523 8350

NOTES TO EDITORS

About LONRHO:

Lonrho Plc is an expanding conglomerate that is rapidly growing a successful business throughout Africa. The Company's shares are traded on the London AIM stock exchange (LONR). Lonrho is strategically focused on the development of business opportunities in infrastructure, transportation, support services,hotels and natural resources. The Company has over 20,000 shareholders and substantial institutional backing to support its mandate to build a profitable business that plays a fundamental role in the development of the African economy.

Since 2006, the Company has invested in or acquired control of:

  • Hotel Cardoso - www.hotelcardoso.co.mz (retained)
  • Lonrho Mining - www.lonrhomining.com
  • Luba Freeport - www.lubafreeport.com
  • Fly540 - www.fly540.com
  • Swissta Holdings - www.swissta.com
  • SA Independent Liner Services - www.saliners.com
  • Bytes and Pieces
  • Kwikbuild - www.e-kwikbuild.co.za
  • LonZim - www.lonzim.co.uk

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