Pacific Dunlop Ld - Further re Disposal etc.

RNS No 4936d
PACIFIC DUNLOP LTD
19th October 1998

                   SALE OF GNB TECHNOLOGIES

Pacific Dunlop announced on 6 July 1998 the sale of its world wide GNB battery
business to Quexco Inc for US$550 million (A$900 million) subject to regulatory
approvals in the USA, Australia and New Zealand.

Approval has been received from the Foreign Investment Review Board in Australia
and, the Overseas Investment Commission in New Zealand, but the necessary
approval from the USA Federal Trade Commission is still outstanding.

This, delay beyond what was originally envisaged, together with competitive
market pressures in the US automotive battery business and the significant
tightening of the financial markets in the USA since the original contract was
signed, has led to a renegotiation of the purchase price.

The purchase price has been reduced to US$500 million (A$783 million), of which
US$100 million will be funded through the issue of a Junior Subordinated Note to
a US subsidiary of Pacific Dunlop. This Note will be for a period of eleven to
fourteen years with a variable interest rate and carries provision for early
retirement.

In addition to the loss recorded in last year's accounts (A$88 million) this
reduction in price together with incremental costs will result in a further
abnormal loss of approximately A$94 million this year.

Pacific Dunlop and Quexco are committed to this transaction which remains
conditional on FTC approval and the continued availability to Quexco of its
present lines of finance at date of contract completion. In relation to FTC
approval, Quexco is seeking to address concerns raised about some overlap in
smelting operations. As a result of the foregoing, the transaction is not
expected to close before the first week of December 1998.

The Managing Director of Pacific Dunlop, Mr Rod Chadwick, said: "In the
meantime, Pacific Dunlop executive and GNS management remain focused an the
efficient running of GNB and the achievement of its business plans. For the
September quarter, GNB's overall profit was in line with last year.

Mr Chadwick said trading for the 1999 financial year had started well for
Pacific Dunlop.

"For the September quarter, Pacific Dunlop's trading profit has shown double
digit growth over the same period last year," he said.

For further information:   John Hine
                           General Manager Corporate Affairs
                           Pacific Dunlop Limited
                           Tel: (61 3) 9270 7270
                           Mob: (61) 0412 254 952

END

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