Re Agreement

Old Mutual PLC
Nedcor PLC
14 September 2000

                       OLD MUTUAL PLC
                              
     Nedcor's Peoples Bank enters into major empowerment
                         initiative

Nedcor  Limited, the South African banking group,  in  which
Old Mutual plc ('Old Mutual') has a 53.3% holding, has today
entered  into a an agreement in principle for an empowerment
consortium to acquire a 20% equity interest in the  enlarged
Peoples  Bank.  The full text of the Nedcor announcement  is
attached.

This  is an important development for Old Mutual as it is  a
further  extension of the process of introducing empowerment
shareholders  into the Group. Additionally it  augments  the
relationship  between Old Mutual Group Schemes  and  Peoples
Bank in the development of cross selling initiatives for the
benefit of our respective customers.



ENQUIRIES:

Old Mutual plc, London
Tel: + 44 20 7569 0100
James Poole, Director Investor Relations

College Hill, London
Tel: + 44 20 7457 2020
Nicholas Williams

Old Mutual, Cape Town
Tel: + 27 21 509 2732
Bruce Allen, Manager, Group Media Communications

College Hill, Johannesburg
Tel: + 27 11 447 3030
Kim Milnes


                              
                       Nedcor Limited
                              
          
     Nedcor's Peoples Bank enters into major empowerment
                    initiative to address
    the banking needs of the fast-growing emerging market


Nedcor  will  undertake the biggest ever  black  empowerment
move  in the banking industry with the sale of a significant
equity stake in its Peoples Bank,which is to be merged  with
FBC Fidelity Bank, to a consortium of empowerment groups and
trade unions.

The  consortium  comprises empowerment  groups  -  Brimstone
Investment  Corporation Ltd, Disability Employment  Concerns
Trust,  NASASA  Investment & Finance Company (Pty)  Ltd  and
Women's Development Bank Investment Holdings (Pty) Ltd - and
the investment arms of trade unions NUMSA Investment Company
(Pty)  Ltd  and SARHWU Investment Holdings Ltd. An agreement
in  principle has been reached for a 20 percent interest  in
the enlarged Peoples Bank to be sold for R260 million cash.

The  transaction is part of an ongoing process by Nedcor  of
introducing  empowerment shareholders that will bring  major
client constituencies into the enlarged Peoples Bank. It  is
envisaged  that  a further 10 to 15 percent  equity  tranche
will be sold to another empowerment consortium.

The enlarged Peoples Bank incorporates the existing business
of  Peoples Bank, the major part of FBC Fidelity  Bank,  and
the  existing  business  of Nedbank's SMME-focused  division
NedEnterprise.  Further,  the  operation  will  include  the
business  from the existing joint venture with US  financial
services  group,  Capital One, and  the  business  from  the
alliance with Old Mutual Group Schemes.

The  transaction  will see the enlarged Peoples  Bank  being
progressively  operated  as an independent  bank  using  the
existing banking licence of FBC Fidelity Bank.

The  new  chief executive of Peoples Bank is Lot Ndlovu,  an
executive director of Nedcor whose credentials include  many
years  of experience in banking. The board of directors  and
Ndlovu's  management  team will be fully  representative  of
South Africa's people.

Peoples   Bank  will  proudly  be  South  Africa's   largest
empowerment bank and the country's eighth largest bank  with
assets  of just under R8 billion. It will focus on  offering
affordable  and  accessible  financial  products   including
mortgages,  loans,  deposits,  insurance  and  transactional
banking services to the emerging market and the SMME sector.

Richard  Laubscher,  Nedcor chief  executive,  welcomed  the
consortium  members as part owners of Peoples Bank,  saying:
'The consortium's capital contribution, their representation
on  the board, and their large underlying membership base of
more  than  530  000  will play an invaluable  role  in  the
evolution of Peoples Bank.'

Lot  Ndlovu, chief executive of Peoples Bank, comments: 'The
new  bank  is  well  positioned  to  trade  profitably  with
critical mass while meeting the banking and lending needs of
the  emerging market and SMME sector. Peoples Bank  has  the
great  advantage of starting off with a strong capital  base
and with the financial and technology support of Nedcor.

'In  its  mission  to  offer  uncomplicated  banking  in  an
efficient manner and at affordable prices, Peoples Bank will
increasingly  rely on technology, particularly smart  cards,
to  deliver  its  services. Nedcor's world-class  technology
infrastructure and its links with various IT and  convergent
companies will be used to achieve this,' says Ndlovu.

Importantly, continues Ndlovu, Peoples Bank will  focus  not
only  on  its target retail sectors but on providing banking
products  and  services  to the SMME  sector,  which  has  a
crucial part to play in the country's economic growth.

The  terms  of  Nedcor's acquisition of  FBC  Fidelity  Bank
(presently  under curatorship) state that should the  bank's
final  net  asset  value be positive - to be  determined  by
August  2001  -  FBC  Fidelity  Holdings,  of  which   Thebe
Financial  Services  is a 49 percent  shareholder,  will  be
allocated  shares  in  Peoples Bank. Accordingly,  this  may
increase the empowerment shareholding in Peoples Bank.

The  transaction is subject to certain conditions precedent,
including  the  High  Court's  sanction  of  the  scheme  of
arrangement  between FBC Fidelity Bank  and  its  creditors,
final  agreement between Nedcor and the consortium, and  the
approval of shareholders and regulatory authorities.


About Peoples Bank

Peoples   Bank  has  an  established  national  distribution
network  with  72 branches and 221 ATMs. The bank  presently
has 651 staff members. Significant progress has been made in
the affirmative action programme.


About FBC Fidelity Bank

The bank was formed in August 1998 when FBC Bank merged with
Fidelity   Bank.  After  experiencing  short-term  liquidity
problems,  the bank was placed under curatorship in  October
1999. A Scheme of Arrangement (where depositors agree to the
suspension of their current contractual rights in favour  of
alternative  rights) is necessary to lift  the  curatorship.
The  scheme meeting is scheduled for September 26 2000, with
the  court  hearing  to  sanction the scheme  scheduled  for
October  10 2000. The operative date of the scheme  will  be
October 16 2000.


About the empowerment consortium investors

The    Brimstone   Investment   Corporation   is   a   fully
representative black empowerment group listed on the JSE and
which focuses on financial services investments.

The   Disability  Employment  Concerns  Trust  provides  job
opportunities for the disabled and represents  seven  trusts
set up for disabled people.

NASASA  (National Association of Stokvels of  South  Africa)
Investment  &  Finance  Company represents  14  000  stokvel
groups comprising 150 000 individual members.

NUMSA   (National   Union  of  Metal  Workers   Association)
Investment Company represents 220 000 union members  and  is
the largest COSATU union.

SARHWU  Investment Holdings represents 120 000 union members
and is the investment arm of SATAWU (South African Trade and
Allied Workers Union).

Women's  Development Bank Investment Holdings  represents  a
number of community-based organisations.

Issued by Nedcor Bank Media Relations and Publicity

Contact: Haley Harvey, 011-630-2657 or 083-325-6583

Further comment:
Lot Ndlovu, chief executive: Peoples Bank, 011-630-7676
Derek Muller, executive director: Nedcor Bank, 011-630-7489
Tony Routledge, executive director: Nedcor Ltd, 011-630-7560