Trading statement

02 February 2006

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

In terms of the revised Listings Requirements of the JSE Limited, a listed company must publish a trading statement as soon as it is satisfied that a reasonable degree of certainty exists that the financial results for the period to be reported upon next will differ by at least 20 per cent from that of the previous corresponding period.

AECI expects that for the financial year ended 31 December 2005, headline earnings per ordinary share will be between 470 and 490 cents per share (that is, 20 to 25 per cent higher than in 2004), and attributable earnings per ordinary share will be between 435 and 455 cents per share.  The difference between the headline and attributable earnings per share is predominantly due to a further transitional provision for post-employment medical aid benefits and the costs of discontinuance of certain operations.

The main reasons for the increase in earnings are improved performance by the explosives and specialty fibres businesses, and by property activities, and lower financing costs.

The information in this trading statement has not been reviewed and reported on by the auditors of the Company.

The results for the financial year ended 31 December 2005 will be published on 21 February 2006.

2 February 2006

JP Morgan Equities Limited

Date: 02/02/2006 10:26:02 AM Produced by the JSE SENS Department


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