Kwikbuild Update

24 May 2010

LONRHO PLC

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

Lonrho Kwikbuild awarded 28.5 million Rand (US$ 3.65m) contracts for South African Government

Lonrho, ( AIM : LONR ) is delighted to announce that its prefabricated building division, Kwikbuild (Pty) Ltd ("the Company") has won R 28.5m ( US$ 3.65m ) of new business. The Company has been awarded two large tenders to develop the Cape Town Station Traders Mall and to build a 700 pupil school near Port Elizabeth. Both of these projects are fast track projects to be completed within four and a half months.

The Cape Town Station Traders Mall is part of the Cape Town station upgrading project for the 2010 World cup and beyond. PRASA (Passenger Rail Agency of South Africa) has awarded Kwikbuild the contract to provide 386 new shopping units ranging in size from 4 to 20 m2 as well as the administration and ablution facilities. The total build is in the order of 3,000m2 and it is planned to have the initial units erected on site within two weeks before the start of the World Cup.

The Department of Public Works, Eastern Cape acting for the Dept of Education has awarded the contract to Kwikbuild for the development of Chatty Primary School on the outskirts of Port Elizabeth. The school will have 700 pupils and is part of the ongoing schools relief programme in the Eastern Cape of South Africa. The school will include 23 classrooms, an Administration building and 2 Ablution blocks and will open in the last quarter of this year.

David Lenigas, Lonrho Executive Chairman commented:

"Lonrho has invested time and money in restructuring Kwikbuild, developing a new production plant, increasing staff levels, improving design and costing capabilities and levels of customer service. I am delighted that we are now beginning to see the results of the restructuring delivering significant orders for the division. Kwikbuild product provides a rapid and quality solution to meet the need for buildings in Africa, from offices and housing to schools and clinics. The Kwikbuild management team is now in a position to take this great product and launch it across the continent."

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