RNS Number:3870U
Liberty Group Ld
19 January 2004

LBH   LIBU

LIBERTY GROUP LIMITED AND LIBERTY HOLDINGS LIMITED - TRADING UPDATE AND
CAUTIONARY ANNOUNCEMENT

LIBERTY GROUP LIMITED

Registration number 1957/002788/06

Alpha Code LGL

Issuer Code LIBU

ISIN Code ZAE000024543

Incorporated in the Republic of South Africa

LIBERTY HOLDINGS LIMITED

Registration number 1968/002095/06

Alpha Code LBH

ISIN Code ZAE000004032

Incorporated in the Republic of South Africa

TRADING UPDATE AND CAUTIONARY ANNOUNCEMENT

Liberty Group"s results for the year ended 31 December 2003 will be released on
3 March 2004, but the Board has deemed it appropriate to give shareholders an
early indication of the year"s performance. Notwithstanding the fact that the
long-term insurance industry has experienced a tough operating environment in
2003, Liberty"s new business premiums were marginally higher than in 2002 (both
in absolute terms and on an indexed basis), and initial indications are that new
business margins were maintained in the range experienced in recent years and
net cash inflows from insurance operations remained strong. Expenses have been
curtailed and are within the actuarial assumption on a per policy basis.

The weighted average investment return for 2003 on the equity, managed and
foreign assets portfolios for 2003 was +12,5% versus -9,5% in 2002.

Despite the positive impact on the life fund operating surplus of the turnaround
in investment returns, a year-on-year reduction in headline earnings is still
anticipated as a result of the inclusion in 2002 of releases from the life fund,
due mainly to reduced expenses on a per policy basis in that year (as per the
Group"s interim announcement).

Initial estimates of headline earnings per share (which take the impact of
investment returns on the life fund operating surplus into account) indicate
that the year-on-year decrease is expected to be between 10% and 15%.

Shareholders are cautioned that the year-end actuarial valuation has not been
completed and finalisation of this valuation may impact upon the initial
estimate of headline earnings per share.

The company"s capital position remains strong and it is not anticipated that the
capital adequacy cover will have deteriorated from the level at 30 June 2003 of
2,6. Similarly, embedded value per share is expected to be higher than the value
shown at 30 June 2003 of R53,42.

The information contained in this announcement has not been reviewed and
reported on by the company"s auditors and consequently holders of securities
must exercise caution in their securities dealings until the publication of the
financial results for the year ended 31 December 2003.

Liberty Holdings Limited is the holding company of Liberty Group Limited and has
no other investments and carries on no other business other than that related to
its investment in Liberty Group Limited. Consequently, Liberty Holdings Limited
shareholders are referred to the comments made above in respect of Liberty Group
Limited.

Date:

19 January 2004

SPONSOR:

Merrill Lynch South Africa (Proprietary) Limited


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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