Proposed Acquisition by Nedcor Investment Bank

OLD MUTUAL PLC
28 October 1999


Acquisition by Nedcor Investment Bank Holdings Limited of Edward Nathan &
Friedland Inc's Corporate Commercial Business ('the ENF business')

Shareholders of Old Mutual plc ('Old Mutual') are referred to the joint
announcement by Nedcor Investment Bank Holdings Limited ('NIB'), Nedcor Limited
('Nedcor') and Edward Nathan & Friedland Inc ('ENF') issued today. The text of
that announcement is outlined below:

1. Introduction 

Further to the cautionary announcement by Nedcor Investment Bank Holdings
Limited ('NIB') on 25 October 1999, Nedcor Limited, NIB and Edward Nathan &
Friedland Inc ('ENF') have concluded a unique agreement in South African history
in terms of which a new concept has been born - the merging of the corporate
commercial activities of a major law firm with the business of a leading
investment bank. For the 1998 year ENF was ranked first in a survey by Ernst &
Young in respect of advice given on 89 announced mergers worth R99 billion.
Those activities that may be conducted only by legal practitioners, particularly
litigation, conveyancing and company registrations, are not being acquired by
NIB, but will be conducted as stand alone practices by the partners and
personnel currently involved, where clients will continue to enjoy the same
standards, service and expertise.

The strategic intent of the acquisition by NIB is to create an integrated
business which combines the best of legal skills in a commercial context with
the best of the financial skills, to the enduring benefit of existing and future
clients of the integrated business and to enable it to be at the forefront of
meeting the demands which will be made on investment banks in the future both in
the region and internationally.

A separate division of NIB trading as 'ENF' will include the acquired ENF
business which will continue to render commercial and corporate legal advice and
services on the same basis as hitherto. It is intended to integrate other
advisory services of NIB, when appropriate, into this division. The commitment
of ENF to advisory excellence and problem solving will continue unabated as will
its focus on training and the recruitment of the top graduates, with particular
emphasis on those from previously disadvantaged backgrounds.

Michael Katz the senior partner of ENF and at present a director of Nedcor and
NIB, will become the chairman of NIB in place of Richard Laubscher, the Nedcor
chief executive officer, who, with other Nedcor directors will remain directors
of NIB. Izak Botha, as the group managing director will continue to be
responsible for the management of the NIB group and implementation of strategy,
policy and directives.

Nedcor's strategy of consolidating its investment banking activities,
culminating in the separate listing of NIB, created the suitable vehicle at an
opportune time for this ground breaking acquisition. NIB continues to be a vital
part of the Nedcor group with Nedcor holding a significant portion of NIB's
equity. It is believed that this transaction will add substantial value, not
only to NIB, but to the wider Nedcor group.

2. History and nature of ENF 

Edward Nathan who founded the firm was admitted to practice as an attorney in
1905. The firm incorporated in 1977. ENF has maintained a well established and
dynamic pre-eminence among South African law firms. Recent independent surveys
confirm that ENF attracts the major share of South Africa's corporate merger and
acquisition work when compared to other law firms.

The activities of the ENF business to be acquired by NIB include the following
areas:

     Mergers and Acquisitions      Employee benefits and
                                   retirement funds
                                   structuring

     Infrastructure finance        Tax

     Competition law               Corporate Finance
                                 

     Structured finance            International trade and foreign investment

     Labour Law                    Intellectual property and trade
                                   marks

     Aviation                      Environmental regulation

     Information technology        Banking and finance

     Media, telecommunications     Privatisation,private publicand regulatory
                                   partnerships and concessions

     Risk management               Mining and energy
 
     Sports/sponsorships          
 
     Healthcare                    Tourism and Entertainment

3.   Salient terms of the agreement

     3.1. The ENF business comprises inter alia the names 'Edward
          Nathan & Friedland' and 'ENF' with the goodwill
          associated with the ENF business.

     3.2. All the partners and the other practitioners in the ENF
          business will be employed within the NIB group.
          Appropriate restraints of trade will be given in favour
          NIB.

     3.3. The effective date of the acquisition will be no later
          than 31 December 1999.

     3.4. The purchase price is R400 000 000 which NIB will
          finance by way of an issue of new NIB shares and/or such
          other funding instruments as it considers appropriate.

     3.5. The acquisition of the ENF business is subject to the
          condition that the necessary regulatory authorities'
          consents and approvals are obtained.

4.   Financial effects

     4.1. It is intended that the attributable intangible value of
          the ENF business will be written off against NIB's share
          premium account.

     4.2. Had the acquisition of the ENF business been implemented
          on 30 June 1999, (the date of NIB's unaudited interim
          financial results), NIB's net asset value per share
          would have reduced by a maximum of 9 cents per share
          from 131,6 cents to 122,6 cents per share, a reduction
          of 6,8%.  The effect of the acquisition of the ENF
          business on NIB's current earnings is not material and
          the acquisition will significantly underpin NIB's
          sustainable growth in earnings over a wide spectrum of
          activities.

5.   Rationale

     5.1. The acquisition of the ENF business will provide added
          diversity of a skills base.

     5.2. NIB will have the ability to translate ENF's leading
          advisory role in South Africa, as evidenced by ENF's
          ranking in the recent survey by Ernst & Young referred
          to above, into banking assets and transactions.

     5.3. NIB will be positioned to take advantage of significant
          additional deal flow, with the skills to deliver to
          clients an integrated and efficient all-encompassing
          legal, corporate finance and transactional services,
          including the ability to service the needs of
          governments and authorities both domestically and within
          the region.

     5.4. The international relationships of the ENF business will
          enhance NIB's skills base and will enable NIB to expand
          its international activities.

     5.5. NIB will be better placed to play a leading role in
          procuring finance for the development of the SADC
          region, commercialisation and tourism infrastructure for
          South Africa.

6.   The litigation and conveyancing business of ENF

     These businesses will not be acquired by NIB for regulatory
     reasons and will operate as separate law firms owned by the
     partners who practice in those law firms.  These businesses
     will continue to render legal services in those spheres to
     the same standards of excellence as is currently the case.

7.   The future

     From the point of view of clients, the ENF business will
     continue to render value added services to them as it has
     always done, but with the integrated benefits provided by the
     NIB group.

Issued by:
Investor Relations
Old Mutual plc
London