Launch of Convertible Bond

Not for release in the United States, Canada or Japan

8th October 2010

LONRHO PLC

(the "Company" or "Group")

Launch of Convertible Bond

Lonrho Plc announces that it intends to make an offering (the "Offering") of up to US$70 million, inclusive of over-allotment option, Guaranteed Convertible Bonds due 2015 by the Company's wholly-owned direct subsidiary, LAH Jersey Limited(the "Bonds").The Bonds will be convertible into redeemable preference shares of LAH Jersey Limited which will be guaranteed by, and will be exchangeable immediately upon issuance for, ordinary shares of 1p each in the Company ("Shares").

Settlement and delivery of the Bonds expected to take place no later than 15th October 2010. The Bonds remain subject to shareholder approval.

The Bonds are expected to have a semi-annual coupon in the range of 6.5% - 7% per annum and a conversion price set at a premium in the range of 25% - 30% above the three day volume weighted average price of the Shares on the London Stock Exchange from October 7th 2010, translated at a GBP-USD exchange rate of US$1.5866. The reference price shall be subject to an adjustment of not lower than 90% of the daily volume weighted average price of the Shares from the period including the closing date to and including the date of the shareholder meeting to approve the issuance of equity linked securities of the Company.

The Bonds will be issued at 100% of their principal amount and, unless previously redeemed, converted or cancelled, will mature on the fifth anniversary of the issue in 2015. The Company will have the option to call the Bonds after the first three years, if the price of the Shares exceeds 130% of the then prevailing conversion price over a specified period. The final terms of the Bonds are expected to be announced later today.

The net proceeds of the Offering will be used to allow the Company and its subsidiaries to repay certain existing indebtedness, to fund general working capital and to accelerate growth in its operations. The Company will place the equivalent of two years coupon in escrow.

Under the terms of the Offering, there will be a 90-day lock-up period on issuances or sales of Shares or equity-linked securities by the Company, subject to certain customary exceptions.

Application will be made to list the Bonds on the official list of the Luxembourg Stock Exchange and to be admitted to trading on the Euro MTF Market of the Luxembourg Stock Exchange. The Company's Shares are traded on the AIM market of the London Stock Exchange and application will be made for any Shares issued on conversion of the Bonds to be admitted to trading on AIM.

The Bonds will be placed through an accelerated bookbuild placement with institutional investors (outside the United States) conducted by ISM Capital LLP, acting as sole Bookrunner and Manager in connection with the Offering. Panmure Gordon (UK) Limited acted as Co-Manager.

David Lenigas, Executive Chairman of Lonrho commented:

"This convertible bond offering will allow the Company to take advantage of new opportunities to significantly enhance shareholder value. For example, over the past few months the Lonrho Agricultural division has seen an increase in demand from the USA retail market for fish and other produce from Southern Africa. The primary use of the funds being raised will permit the Company to meet the logistical, processing and delivery requirements emanating from this exciting and significant market."

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