End of struggle for Cape Asbestos Victims

Press Release - 13th March 2003

The 4-year fight for compensation by South African asbestos miners and residents has ended in settlement agreements being signed on 13 March 2003 with both English company Cape Plc and South African company Gencor Limited.

Cape Plc has agreed to pay £7.5 million compensation to the 7500 members of the Group action brought in England. Gencor has agreed to pay £3.2 million (at today's exchange rate) to those of the Group who were also exposed to asbestos from Gencor/Gefco operations in South Africa. A large number of the Cape victims worked or lived at or near Gencor/Gefco operations. Gefco took over most of Cape's operations when it pulled out of South Africa in 1979. Gencor owned Gefco for many years.

At the same time, Gencor has set up a Trust containing more than £30 million for the benefit of a much larger class of Gencor claimants, presently being assembled in South Africa, who are not part of the Cape Group action.

The terms of the Gencor Trust are based on the defunct proposed Cape Trust, which was to have been set up last year.

The compensation recovered on behalf of the Cape victims marks the end of what for many people has been a 4 year wait for compensation. Those negotiating on behalf of the victims have had to take into account the limited resources of the company, and the urgency of bringing the case to an end.

The funds from both Cape and Gencor will be paid into accounts held by their solicitors and attorneys, and will not be released to the victims until Gencor completes its unbundling, scheduled to be completed by the end of June 2003.

Solicitor Anthony Coombs of Manchester firm John Pickering & Partners, which represents one third of the Cape victims, commented: "This has been the most hard fought and difficult case my firm has ever been involved in. I am very pleased it has ended with meaningful payments to our clients."

Contact:

Anthony Coombs, John Pickering & Partners
Old Exchange Buildings
St. Ann's Passage
29/31 King Street
MANCHESTER M2 6BE
Tel: 0161 834 1251
Fax: 0161 834 1505
FREEPHONE: 0800 854201