Acquisition of John Deere and Komatsu Dealerships

8th April 2010

LONRHO PLC

("Lonrho" or the "Company" or the "Group")

Lonrho Plc agricultural division acquires the John Deere and Komatsu dealerships for Mozambique

Lonrho Plc (AIM : LONR) is delighted to announce that it has today completed the acquisition of 100% of the John Deere and Komatsu dealerships for Mozambique. The transaction was completed on the same terms as announced when formal Heads of Agreement were signed on the 18th February 2010. The full text of the announcement of that date is set out below:

Text of announcement of 18 February 2010

Lonrho Plc (AIM : LONR) is delighted to announce that it has signed a formal Heads of Agreement to acquire 100% of Trak-Auto Lda, (Trak-Auto) the existing holder of the John Deere and Komatsu dealerships in Mozambique. John Deere is a leading supplier of agricultural equipment and Komatsu is one of the world's largest manufacturers of construction, mining and utility equipment.

Trak-Auto sales were US$ 9.9 million in the year to December 2008 with a gross profit of US$ 1.4 million. Net assets at that date were US$ 0.6 million. Lonrho is looking to build revenues and profit substantially over the coming years. The Mozambique market for agricultural, construction and mining equipment is growing due to the number of industrial scale agricultural, bio-fuel and large coal and mineral projects that are currently being developed across the country.

Trak-Auto, a local Mozambique company, holds the exclusive licences for both John Deere and Komatsu products in Mozambique and sold 104 John Deere units and 13 Komatsu units in 2009. It services customer's requirements from its branches in Maputo, Pemba and Beira and via an agent in Tete.

The acquisition price for 100% of Trak-Auto is US$ 2.0 million payable on completion, and a further US$ 1.0 million per year for the following three years subject to the business meeting agreed growth targets in relation to sales and profits. The existing management will remain with the business.

Lonrho will arrange working capital for the business to ensure that it can fund the growth that is forecast.

David Lenigas, Lonrho's Executive Chairman stated:

With the combination of Lonrho's local expertise and John Deere and Komatsu's excellent product ranges and professional approach to markets we expect to see strong growth for both brands in Mozambique. I feel sure that the commitment by all parties to provide the highest quality of support, service and training for the products delivered will build brand loyalty and market share.

Lonrho already has a number of current businesses in Mozambique ranging from the best hotel to the largest IT company, together with its agricultural interests. Mozambique is rapidly developing into a strong African economy and is a good place to do business. The country has some really significant new projects being developed.

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