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Disposal of non-core business, Wendt

31 March, 2005

Anglo American's Ferrous Metals and Industries Division has announced the sale of Wendt, a company within the Boart Longyear group.

Wendt specialises in the development of grinding solutions for hard materials (tungsten carbide, ceramics and polycrystalline hard materials), steel and glass.

Wendt has been sold to 3i Group plc, Europe's leading private equity company, for an enterprise value of US$90 million.

Philip Baum, CEO of Anglo Ferrous Metals and Industries said, “This transaction further advances our strategy of reshaping the Division around core businesses. We have ensured that Boart Longyear receives full value and that Wendt's future is assured.”

Background note for editors:
Headquartered in Meerbusch, Germany (near Dusseldorf), Wendt specialises in the development of grinding solutions for hard materials (tungsten carbide, ceramics and polycrystalline hard materials), steel and glass. These include the manufacture of advanced robotic grinding machines and systems as well as diamond and CBN grinding wheels, diamond dressing and profiling tools. Wendt employs some 844 people and has plants in Belgium, Germany, Spain, Switzerland, Russia, South Africa, India and the USA.

In a recent announcement Anglo American recorded that it had received a number of approaches for the purchase of the Boart Longyear group and had, accordingly, undertaken a formal process to determine whether shareholder value would be maximised by the sale of the group. No final decision has been taken to dispose of Boart Longyear and it is expected that a decision will be made before the end of the second quarter of 2005 at which time a further statement will be made.

Boart Longyear is a leading provider of drilling services, tools and equipment for the natural resource industry, the construction and quarrying industries and industrial markets worldwide.

For further information:

Anglo American plc
20 Carlton House Terrace London SW1Y 5AN United Kingdom
Tel: +44 (0)20 7968 8888 Fax: +44 (0)20 7968 8500
www.angloamerican.co.uk

Registered office as above. Incorporated in England and Wales under the Companies Act 1985. Registered Number 3564138

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