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Rainbow results for 12 months ended 31 Mar 00

Revenue increased to R2.3bn (R2.2bn), attributable income increased to R21.5m (-R13.5m), and heps increased to 5.4c (-4.3c). Rainbow”s restructuring continues to make good progress. Interest rates have decline but remain high in real terms. Industry Stock levels normalised during Sep 99. Price realisations therefore remained low for most of the year, only showing recovery over the festive season. Improvement in consumption demand has been marginal at best. These factors had a significantly negative impact on industry profitability and threatened the survival of some of its members. Notwithstanding the weak economy Epol continues to perform well. No material improvement in pricing realisation levels is forecast for the year ahead. Continued volatility on international markets could expose the local poultry industry to increased dumping and a greater threat from unfairly priced imports. Management”s focus will remain on the streamlining process to further reduce costs and improve efficiencies, marketing effectiveness and customer service.