Lonrho PLC - Lonrho Springs Update

Wed Dec 12, 2007 4:44am EST

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RNS Number:7240J
Lonrho PLC
12 December 2007


12th December 2007

                                   LONRHO PLC
                           (Lonrho or the 'Company')

   Lonrho expands it's African water bottling division and announces a US$ 9
              million project to serve the booming Angolan market

Lonrho (AIM: LONR), the conglomerate with a structured portfolio of African
investments, is pleased to announce that it's water division, Lonrho Springs,
has signed an agreement to develop a major new water bottling plant in Luanda,
Angola.

Following an extensive market review and analysis of the projected future
bottled water requirements in the country, Lonrho is establishing a new Angolan
subsidiary, Lonrho Springs Angola Lda, ( LOSA ) that will develop the project
and operate the business.

The new factory and buildings of 1,500m2 will be developed close to Caxito, in
the Bengo state, 35km from Luanda, where land has already been secured for the
project, and ground water tests completed.  The new production plant will be
ideally situated to service the existing market demands of Luanda and close to
the proposed development of New Luanda city.

The new factory will be built to ISO standards and the 'Swissta' international
standard for producing bottled water and will provide a quality and safe product
for the Angolan market, utilising the highest standards of international water
processing technology to ensure consistent and reliable production.

The mineral water will be extracted from bore holes, and will be enriched with
minerals to provide a product with the optimum levels of safety, health and
taste. In addition to mineral water, the plant will also provide a range of
flavoured and vitamin enriched waters.

Two distribution bases of 1,000m2 each will be developed for the business in the
key market areas in Luanda. These will aid distribution to overcome the
difficult logistics currently experienced in the market. The distribution
centres will be replenished with product overnight, thus avoiding the traffic
congestion in Luanda

The plant is designed to produce 4.5 million litres of water per month,
distributed in a range of sizes from 0.33ltr through to 20ltr units.

The project is expected to cost US$ 9 million to complete and plans are to be
producing water for the market by the end of 2008. The project will be funded as
to 40% equity funding and 60% debt funding from Angolan commercial banks.

LOSA is a strategic investment for Angola. Each of the founding investors are
participating in the company by way of either land or cash investments, and the
equity participation is as follows :

Holding       Investor

55%           Lonrho Springs BVI                    The Lonrho Plc wholly owned subsidiary
                                                    developing water projects throughout Africa

15%           GEF Management Corporation            A Washington based investment fund

15%           Angolan Business Corporation          An Angolan investment company

15%           R2J Lda                               An Angolan investment company

David Lenigas, Lonrho's Executive Chairman commented:

"This is a significant step for the continuing roll out of Lonrho Springs as a
water bottler across the African Continent. The combination of the latest
purification and bottling technology combined with modern plant and equipment
will ensure that the water is of the highest possible quality. Angola is a
vibrant and expanding market opportunity, and fits into the plans to build new
Lonrho Springs facilities in over 20 countries across Africa. "

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 Priestley, 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
Hugh Field                                                  +44 (0) 20 7523 8350
Jonny Sloan

NOTES TO EDITORS

About LONRHO:

Lonrho Plc is an expanding conglomerate that is rapidly growing a successful
business throughout Africa.  The Company is listed on the London AIM stock
exchange (LONR). Lonrho is strategically focused on the development of business
opportunities in infrastructure, transportation, support services 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

•               Norse Air - www.norseair.co.za

•               Swissta Holdings - www.swissta.com

•               SA Independent Liner Services

•               Bytes and Pieces

•               Celsys Limited - www.celsys.co.zw


                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

AGRUUOKRBKRUARA
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