RNS Number:3471O
Lonrho PLC
20 February 2008

20th February 2008

                                   LONRHO Plc

                           ("Lonrho" or the "Company")


LONRHO WINS CONTRACT TO REDEVELOP AND MANAGE THE 'KARAVIA', A 250 ROOM HOTEL IN
                                  LUBUMBASHI,
                          DEMOCRATIC REPUBLIC OF CONGO

Lonrho plc (AIM: LONR) today announces that, following a competitive tender
process, Lonrho has been awarded the redevelopment and subsequent management
contract for the Karavia Hotel in Lubumbashi by the Government of the Democratic
Republic Of Congo (DRC).

The tender process was run by the Comite de Pilotage de la Reforme des
Entreprise Publiques, (COPIREP), the Government department for reconstruction
projects and the Lonrho proposal was approved by the Council of Ministers.

A new company, Karavia 2008, will be established to be owned as to 30% by the
Government of the DRC, 35% by Lonrho and 35% by De Moerloose Group, a large
Belgian group operating in the DRC in the automotive, distribution and airlines
business. Karavia 2008 will hold a 25-year lease on the property for a
peppercorn rent, renewable for a further period of 25 years. Karavia 2008 will
invest up to US$ 20 million in the refurbishment project to bring the hotel back
to an international five star standard. The funds will be raised as a
combination of equity and debt finance.

The Karavia hotel is currently the only potential large-scale accommodation
facility in Lubumbashi, the burgeoning centre of the copper and cobalt industry
in the DRC. The hotel, originally a Sheraton Hotel, has been derelict for over
ten years and requires a complete refurbishment.

The hotel market in Lubumbashi is currently chronically underserviced as there
are no international standard accommodation facilities meeting the growing
market demand, being driven by executives and mining engineers developing the
world class natural resource projects in the region, such as Phelps Dodge;
Anvil; Nikanor; and First Quantum. In excess of US$ 12 billion is being invested
in natural resource projects in Katanga province, of which Lubumbashi is the
capital.

Lonrho Hotels will have the management contract for the hotel on a renewable
ten-year management contract. The hotel will be branded the 'Karavia : A Lonrho
Luxury Hotel'.

It is estimated that the project will take approximately twelve months to
complete.

David Lenigas, Executive Chairman of Lonrho stated :

"Lubumbashi is experiencing significant economic growth as new copper and cobalt
projects are planned and come on line. This in turn has generated large numbers
of expatriate and Congolese visitors, who currently have very limited choices
for accommodation.

The requirement for an international standard hotel to cater for this market is
clear and forecast occupancy and room rates are excellent.

The refurbishment of the property will create an asset that the DRC Government
can be proud of, and the rebuilt hotel will be a fitting testament to the
progress in the country since the democratic elections."

ENQUIRIES
Lonrho Plc                                                  +44 (0)20 7016 5105
David Lenigas, Executive Chairman                           +44 (0)7881 825 378
Geoffrey White, Chief Executive Officer                     +44 (0)7717 307 308
Emma Priestley, Executive Director                          +44 (0)7867 785 177

Pelham PR
Charles Vivian                                              +44 (0) 20 7743 6672
                                                            +44 (0) 7977 297903
Alisdair Haythornthwaite                                    +44 (0) 20 7743 6676
                                                            +44 (0) 7714 721379

Collins Stewart Europe : NOMAD to Lonrho
Hugh Field / Jonny Sloan                                    +44 (0) 20 7523 8350




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
*       Lonrho Mining - www.lonrhomining.com
*       Luba Freeport - www.lubafreeport.com
*       Fly540 - www.fly540.com
*       Norse Air - www.norseair.co.za
*       Swissta Holdings - www.swissta.com
*       SA Independent Liner Services - www.saliners.com
*       Bytes and Pieces -
*       Celsys Limited - www.celsys.co.zw
.       Kwikbuild - www.kwikbuild.co.za



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