Company press release

AECI LIMITED
Incorporated in the Republic of South Africa
(Registration No. 1924/002590/06)
Share code:  AFE     ISIN No. ZAE000000220

Chemical Services Limited (Chemserve) has reached agreement for the acquisition of two separate businesses, for a combined consideration of about R150 million. The companies concerned are those of UAP, comprising UAP Crop Care (Pty) Limited and UAP Agrochemicals KwaZulu-Natal (Pty) Limited; and Chemiphos (Pty) Limited.

UAP is a distributor of agricultural chemicals, focusing on the Western Cape and KwaZulu-Natal. Chemserve, through its subsidiary Plaaskem (Pty) Limited, wishes to increase its capacity to supply specialist products and services to the agricultural industry and believes that UAP will provide an excellent platform for further growth in this market.

Chemiphos manufactures and supplies specialist polyphosphoric acid to catalyst manufacturers, and food grade phosphoric acid to the food and beverage industry. It also distributes products for a number of international principals. The company meets Chemserve’s criteria for a specialist niche business with a high service component.

Both transactions are subject to competition authority approval. The effective dates of the transactions are expected to be 1 January 2005 for UAP and 1 March 2005 for Chemiphos.

Chemserve is a wholly-owned subsidiary of AECI Limited.

Enquiries:
Frank Baker
Managing director
Chemical Services Limited
Tel: +27(0)11 548 4610
Fax:+27(0)11 388 2465
Cell: +27(0)83 255 7069
Email: frank.baker@chemserve.co.za

Date: 06/12/2004 10:53:11 AM Produced by the JSE SENS Department