Old Mutual Bank to merge

Old Mutual PLC
13 November 2001



                                OLD MUTUAL PLC



             Nedcor's Permanent Bank and Old Mutual Bank to merge



Nedcor Ltd and Old Mutual (South Africa) Ltd today announced the proposed
merger of Permanent Bank and Old Mutual Bank to form a new banking operation
focused on wealth management and financial planning.



The merged operation will be a custom-built bancassurance institution focused
on the retail middle market in South Africa. Nedcor and Old Mutual will each
own 50 percent of the new bank.



The new bank, operating as Old Mutual Banking Services, will initially offer a
full range of deposit and investment accounts, home loans, secured loans and
other wealth management products. Delivery channels for the new bank will be
branches, ATMs, financial advisers, the telephone and the Internet.



Nedcor Chief Executive Richard Laubscher said:



'This merger will strengthen Nedcor's position in the broader retail middle
market. Harnessing the powerful Old Mutual brand to access this market, and
the Old Mutual client base, offers exciting growth opportunities for Nedcor.
The business will also benefit from the sales efforts of Old Mutual's
extensive adviser and broker force. The merger rationalisation benefits will
provide impetus to Nedcor's ongoing efforts to drive further cost efficiencies
and reductions.'



Laubscher said that when Permanent Bank's middle market position,
infrastructure and systems are added to the pre-eminent position of Old
Mutual, the combination significantly outweighs the stand-alone case for
Permanent Bank and Old Mutual Banking Services.



Said Old Mutual South Africa Managing Director Roddy Sparks:



'This development represents a major step forward in the Group's bancassurance
strategy, releasing considerable synergies for both businesses.



'By combining Old Mutual's brand, client base and advisory capability with
Nedcor's processing expertise and Permanent Bank's branch network, we will
create a compelling proposition for a large number of South African consumers.'



The two groups have existing bancassurance initiatives with substantial growth
potential. The growth experience to date provides further motivation for the
creation of the new bank in the important middle market.



The merger will provide Old Mutual Banking Services' clients with greater
reach and functionality through Permanent Bank's branch and ATM network.
Permanent Bank clients will benefit from a wider range of products, more
choice in delivery channels, advice-assisted financial planning, and the
backing of two of South Africa's most solid financial institutions.



The transaction will be undertaken for no cash consideration from either side.
This has been achieved by balancing the relative contributions from both
parties. The merged business will have an initial asset base of about R5
billion.



Nedcor Executive Director Derek Muller explained the merger in the context of
Nedcor's retail growth strategy.



'A pivotal part of Nedcor's retail strategy in the middle market is alliance
partnerships with best-of-breed consumer groups such as Pick 'n Pay, JD Group,
Imperial Bank and now Old Mutual with its strong brand and client base of over
three million. The new distribution channels and client bases acquired through
our alliances broaden our product range and increase the volume of
transactions through the existing bank infrastructure resulting in
progressively lower unit costs.'



Eugene Smith, Old Mutual Banking Services Chief Executive said the merger
represented the next step in the development of OMBS.



'The merger is a revenue-growth proposition that exploits synergies inherent
in the brand, processes, distribution channels and client bases. Clients will
enjoy an enhanced and integrated financial services offering which is fully
consistent with Old Mutual's bancassurance strategy.'



The process of integrating Permanent Bank and Old Mutual Banking Services is
expected to take between six and 12 months from the date of approval of the
proposed transaction.



During this period the Permanent Bank brand will run in parallel with the Old
Mutual Banking Services brand. The integration process and the resulting
availability of a wider range of delivery channels for clients will see a
restructuring of the existing Permanent Bank branch network.  This will
involve relocation or closure of some branches. Every effort will be made to
re-deploy affected staff members to other areas of the group. Accordingly the
final impact on staff is not expected to be significant.



Permanent Bank has a long and proud history of involvement in home loans and
investments. Muller says existing clients can be reassured of the continued
dedication to servicing their current and future needs.



Old Mutual is South Africa's leading financial services company, offering
personal financial advice and planning to over three million clients. Old
Mutual Banking Services was launched to broaden the Group's range of wealth
accumulation and protection products. It will offer short term savings and
investments as well as home loans and other asset-backed lending.



The nominated executive chairman of the new bank is Jack de Blanche, an
Executive Director of Nedcor Bank. The nominated Chief Executive is Eugene
Smith, the current Chief Executive of Old Mutual Banking Services.  Old Mutual
and Nedcor will have equal representation on the board, which will comprise
executive and non-executive directors.



The transaction is subject to regulatory approvals, including the Registrar of
Banks. It is also subject to the normal due diligence process. As this is a
transaction between related parties, an independent investment bank has been
requested to provide 'fair and reasonable' opinion for the independent, Non
Executive Directors of Nedcor.



13 November 2001



ENQUIRIES:


Old Mutual plc, London

Zoleka Mzimba                             Tel: + 44 20 7569 0100

Corporate Communications


Old Mutual, South Africa

Bruce Allen                               Tel: + 27 21 509 2732

Group Media Communication


College Hill, London

Nicholas Williams                         Tel: + 44 20 7457 2020


College Hill, Johannesburg

Robyn Hunt                                Tel: + 27 11 447 3030





Notes to Editors:



Old Mutual plc



Old Mutual plc is an international financial services company based in London,
with expanding operations in life assurance, asset management, banking and
general insurance. Old Mutual is listed on the London, Johannesburg, Namibian,
Malawian and Zimbabwean stock exchanges.



The company operates the largest life assurance business in Southern Africa,
through which it provides life, disability and health insurance, retirement
savings and investment products to groups and individuals. Life assurance
operations in India, the UK and the US have been launched this year. During
2000, Old Mutual acquired Gerrard Group and United Asset Management
Corporation. Old Mutual owns 53% of Nedcor and 51% of the South African
general insurance company, Mutual & Federal.



Nedcor Ltd



Nedcor has assets of R173 billion and provides corporate, commercial,
investment and retail banking. Nedcor covers the entire South African retail
market with its multi-brand strategy: Nedbank Syfrets Private Bank is niched
in the high net worth segment, Nedbank is a major player in the upper and
aspirational markets, and through its alliance partnerships has an expanding
presence in the middle market. Peoples Bank is well positioned in the
entrepreneurial and emerging mass market.