LONR Lonrho

RNS Number:6360A
Lonrho PLC
20 July 2007

                                   LONRHO PLC
                          ("Lonrho" or "The Company")

                      Lonrho's LonZim banks #32.3 million

Lonrho Plc ("Lonrho"), the African conglomerate with a diverse portfolio of
investments, ranging from infrastructure, transportation, support services and
natural resources, announces today that its newly established subsidiary LonZim
Plc ("LonZim") has raised an initial #32.326 million (US$66.234 million) from a
number of existing institutional shareholders of Lonrho by issuing 46,180,958
LonZim shares.

Lonrho holds 30,000,001 shares in LonZim as the founding shareholder (cost
#3,001) representing 39.4% of that company and currently holds all board
positions.

LonZim intends to raise additional funds and seek a listing on a major stock
exchange over the coming months.

On listing, Lonrho's arrangements with LonZim will be:
          
     *    Lonrho's initial shareholding will be escrowed for a period of 
          5 years.

     *    Lonrho will hold a management contract with LonZim whereby it will
          receive 1% of gross assets under management and 21/2 % of gross 
          turnover of LonZim per annum.

     *    Lonrho will not compete with LonZim in Zimbabwe whilst Lonrho manages
          LonZim.

     *    LonZim funds will be escrowed until successful admission to trading on
          a stock exchange.

LonZim's principal focus will be to acquire and invest in key assets in the
property, infrastructure, hotel and commercial sectors in Zimbabwe and
neighbouring countries including the important access corridor to the coast at
Beira in Mozambique.

Lonrho's management team and consultants offer an in-depth understanding of
business and investment in Africa, including Zimbabwe. The team brings
significant experience in successfully brokering and completing transactions and
developing companies in challenging parts of the continent.

LonZim will adhere to all international and national laws applying to foreign
investment in Zimbabwe and plans to implement and adhere to best practice in
corporate governance.

David Lenigas, Lonrho's Executive Chairman and Chief Executive, commented:

"There are clearly risks associated with investing in Zimbabwe and this
financial commitment from Lonrho's existing institutional investors by
subscribing for LonZim shares, prior to a listing, demonstrates their belief
that the opportunities for economic growth in the country are enormous."

"Lonrho believes that there is a substantial commercial opportunity in the
Zimbabwean market, which has deteriorated due to severe underinvestment. This
potentially offers significant upside. As such I believe that cautious and well
informed investment in Zimbabwe and the coastal access corridor will ultimately
offer excellent returns for LonZim shareholders as well as Zimbabwean businesses
and the Zimbabwean economy.

"I strongly believe that the best way to encourage economic growth within a
country and nurture the development of a strong infrastructure and thriving
business culture is through private, foreign direct investment and LonZim fits
with that principle."

20th July 2007

For further information, please contact:
Lonrho Plc                                              +44 (0) 20 7016 5105
David Lenigas, Chief Executive                          +44 (0)7881 825 378
Emma Priestley, Executive Director                      +44 (0)7867 785 177

Pelham PR
Charles Vivian                                          +44 (0) 20 7743 6672
                                                        +44 (0) 7977 297 903
Alisdair Haythornthwaite                                +44 (0) 20 7743 6676
                                                        +44 (0) 771 472 1379
Collins Stewart Europe
Hugh Field and Ellen Francis                            +44 (0) 20 7523 8000


Notes to Editors:

About Lonrho:

Lonrho Plc is an expanding conglomerate that is rapidly growing a successful
business throughout Africa. The Company is listed on the London AIM stock
exchange (LONR). Lonrho is strategically focused on the development of business
opportunities in infrastructure, transportation, support services and natural
resources. The Company has over 20,000 shareholders and substantial
institutional backing to support its mandate to build a profitable business that
plays a fundamental role in the development of the African economy.

Since 2006, the Company has invested in or acquired control of:

Hotel Cardoso - www.hotelcardoso.co.mz (retained)
Nare Diamonds - www.narediamonds.com
Brinkley Mining - www.brinkley-mining.com
Luba Freeport - www.lubafreeport.com
Fly540 - www.fly540.com
Norse Air - www.norseair.co.za
Swissta Holdings - www.swissta.com
Countermine - www.countermine.com
SA Independent Liner Services


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