Statement by Sun International Hotels Limited

Caledonia Investments PLC
19 January 2000


CALEDONIA  INVESTMENTS PLC - STATEMENT  BY  SUN  INTERNATIONAL
HOTELS LIMITED


Set out below is the full text of a press release made today
by Sun International Hotels Limited.


'PARADISE ISLAND, The Bahamas, January 19, 2000 - Sun
International Hotels Limited (NYSE: SIH) announced today that
it has received a proposal from Sun International Investments
Limited to acquire in a merger transaction all ordinary shares
of Sun International Hotels Limited not already owned by Sun
International Investments Limited or its shareholders for $24
per share in cash.  Sun International Investments Limited and
its stockholders own approximately 53% of the Company's
outstanding ordinary shares.

In response to the proposal, the Company intends to form a
Special Committee of independent members of the Board of
Directors which will retain its own financial and legal
advisors.

Completion of the proposed transaction will be subject to
various conditions, including approval by the Special
Committee of the Company, successful completion of financing
on terms satisfactory to Sun International Investments
Limited, negotiation and execution of a definitive agreement
containing terms and conditions customary for a transaction of
this nature and approval of the N.J. Casino Control
Commission.  Sun International Investments Limited has
retained The Bank of Nova Scotia, Bear, Stearns & Co., Inc.
and Deutsche Bank AG to arrange financing for the proposed
transaction.

Sun International Investments Limited also has advised the
Company that it and its shareholders will not sell any Sun
International Hotels Limited ordinary shares in connection
with the proposed transaction and do not wish to consider or
participate in any possible alternative sale of Sun
International Hotels Limited ordinary shares.

Sun International Hotels Limited is an international resort
and gaming company incorporated in The Bahamas which develops,
operates and manages premier resort and casino properties.'


Caledonia Investments plc holds a one third interest in Sun
International Investments Limited.

Peter Buckley
Chairman & Chief Executive, Caledonia Investments plc
Tel:  [phone]