Lonrho Agribusiness - Aquisition of Fresh Direct

20 August 2010

Lonrho Plc

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

Lonrho Plc's Agribusiness Division Completes Acquisition of Fresh Direct

Lonrho Plc (AIM:LONR) is pleased to announce that it has increased its holding in the issued share capital of Fresh Direct Ltd ("Fresh Direct") from the current 51 per cent to 100 per cent. This completes the process of the acquisition of the minority stake in Fresh Direct as approved by shareholders at the Lonrho AGM held on 31st March 2010.

In April 2008 Lonrho acquired a 51 per cent stake in Fresh Direct. Lonrho has now acquired from Oak Nominees Limited the remaining 49 per cent of the issued share capital in Fresh Direct that Lonrho did not previously own. The consideration payable has been translated into Sterling and a fixed number of Lonrho shares determined by reference to the formula approved by shareholders at the Lonrho AGM on the 31 March 2010. The consideration will be satisfied by the issue of 78,221,479 new ordinary shares of 1 pence in Lonrho ("Consideration Shares") at a price of 10.98p per share a total consideration of £8.58m. Application has been made for the Consideration Shares, which will rank parri passu with all existing ordinary shares, to be admitted to trading on AIM and dealings are expected to commence on or about the 26th August 2010.

The Fresh Direct farming operations focus on volume production agreements with commercial farms, and are a result of a planting program that has installed irrigation capabilities and planted 165,000 fruit trees and established commercial fruit and vegetable projects with a current NPV in excess of £8.0 million. The planting programs will commence commercial yields in 2011 which will determine future returns. The effect of the transaction on the Company will be to give Lonrho 100 per cent control of Fresh Direct.

The Consideration Shares will be subject to a lock in for a period of twelve months from the date of completion of the transaction and thereafter will be subject to orderly market provisions.

David Lenigas Executive Chairman stated:

"Lonrho bought a controlling stake in Fresh Direct in April 2008, and has subsequently grown the company to provide significant fruit and vegetable output for the South African and export markets. The Board believed that 100 per cent ownership was important and very beneficial to shareholders and strategically builds the abilities for Lonrho Agriculture to provide a farm to consumer vertically integrated agricultural business".

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