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Rainbow restatement of results

Shareholders are advised that the company is currently finalising its results for the year ended 31 March 2004, which will be released on SENS on or about 19 May 2004.

Restatement of Comparative Figures in respect of Deferred Taxation
In reviewing the current year deferred taxation liability, it was found that the liabilities raised in the prior financial years ending 31 March 2002 and 31 March 2003 were incorrect. To ensure compliance with Accounting Statements (AC 102 and AC 103) dealing with Income Taxes, the company”s 2003 comparative figures have been restated to recognise a deferred taxation liability in respect of non-recoupable development allowances on farming buildings, which had previously not been appropriately provided for. The change requires restatement of the prior year opening reserves by R6.7m, being the effect on the 2002 year, the deferred taxation charge by R91.7m in respect of the 2003 year and, consequently, the deferred taxation liability of R98.4m in 2003. On the 2003 income statement, pre tax profit is unaffected, but after tax, attributable profit and headline earnings were overstated to the extent of the deferred tax charge of R91.7m. Attributable profit thus reduces to R161.8m (R253.6m), headline earnings drop from 106.2cps to 70.8cps and net asset value declines from 408.5cps to 371cps.The restatement has no past or future impact on operating profit or cash flow.

Performance Expectation for the year ended 31 March 2004
The company”s earnings performance for the year ended 31 March 2004 is not impacted by the restatement. However, where previously a material decline in headline earnings for the year ended 31 March 2004 had been expected on a year- on-year basis, being mainly due to the company”s return to a taxable position, it is now anticipated that with the restated comparative, the earnings expectation is that headline earnings per share will be materially above and basic earnings per share will be substantially above the prior year. The financial information on which this trading statement is based has been reported on by Deloitte & Touche.