De Beers Interim Results

Anglo American PLC
25 July 2003


News Release

25 July 2003


De Beers Societe Anonyme ("Dbsa") today reported headline earnings for the six
months ended 30 June 2003 of US$414 million.

Anglo American plc ("AA plc") arrives at its headline earnings in respect of De
Beers by accounting for the interests arising from the ordinary shares and the
10% preference shares it holds in DB Investments ("DBI").

AA plc will therefore report headline earnings of US$248 million for the six
months ended 30 June 2003 from its investment in DBI, as reconciled in the table
below:

    Reconciliation of headline earnings for the 6 months ended 30 June 2003

US$ million                                   Total    Ordinary    Preference
                                                         shares     shares (3)
•    DBI headline earnings (100%)               414           -              -
•    GAAP adjustments (1)                        58           -              -
•    DBI headline earnings - UK GAAP (100%)     472         417             55
•    AA plc's 45% ordinary share interest       188         188              -
•    Additional 3.65% ordinary share interest    15          15              -
     (2)
•    AA plc's portion of the preference shares   45           -             45
     (3)
•    AA plc headline earnings                   248         203             45

(1) GAAP adjustments relate to mark-to-market adjustments which are recorded in
De Beers' earnings, principally the US$70 million in respect of the
mark-to-market of interest rate hedging contracts referred to in Dbsa's press
release, but which are excluded from AA plc's UK GAAP results, and associated
tax effects.

(2) As a result of the De Beers' partial interest in Debswana Diamond Company
(Proprietary) Limited (one of the shareholders in DBI), AA plc accounts for an
additional 3.65% of DBI's post-tax earnings attributable to ordinary shares.

(3) AA plc grosses up its preference share income to the operating profit level
and accounts for its preference share interest in operating profit, exceptional
items, investment income and net interest, tax and minorities, in the same way
as it accounts for its ordinary share interest in these balances.  This
treatment is in accordance with FRS9, paragraph 33, which indicates that where
preference shares are an integral part of the investor's long-term interest, it
is appropriate to include the preference share interest with the ordinary share
interest in determining the investor's overall share of an associate's results.
The headline earnings attributable to AA plc's US$35 million preference share
income are arrived at by adjusting for a proportion of exceptional items (+US$2
million) and goodwill amortisation (+US$8 million) in the same way as the
ordinary share interest is calculated.

In the six months ended 30 June 2003, AA plc received from DBI US$56 million
dividends on ordinary shares relating to FY 2002 and US$35 million dividends
representing the second US$35 million payment on preference shares for 2002.  A
US$35 million interim dividend on preference shares for 2003 is scheduled for
payment on 31 July 2003.

In the six months ended 30 June 2002, AA plc received from DBI US$29 million
dividends on ordinary shares and US$42 million dividends on preference shares
(representing 7 months of 2001 following the De Beers transaction). A US$35
million interim dividend on preference shares for 2002 was received from DBI
during the second half of 2002.


     Reconciliation of headline earnings for the 6 months ended 30 June 2002

US$ million                                   Total    Ordinary    Preference
                                                         shares        shares
•    DBI headline earnings (100%)               308           -             -
•    GAAP adjustments                             -           -             -
•    DBI headline earnings - UK GAAP (100%)     308         258            50
•    AA plc's 45% ordinary share interest       116         116             -
•    Additional 3.65% ordinary share interest     9           9             -
•    AA plc's portion of the preference shares   41           -            41
•    AA plc headline earnings                   166         125            41

     
The above figures are unaudited


                            De Beers Societe Anonyme
                  (Incorporated under the laws of Luxembourg)

                                                                    25 July 2003


                                 INTERIM RESULTS
                     FOR THE SIX MONTHS ENDED 30 JUNE 2003


Buoyed by good results in 2002, the diamond industry started this year in a
cautiously optimistic mood.  Retail sales in the first two months were
encouraging but then lost momentum as the global economy slowed sharply. War in
the Middle East and the impact of the SARS virus on the Asian economies
undermined consumer confidence.  More recently, retail sales have shown signs of
recovery in line with growing consumer confidence and global retail sales of
diamond jewellery for the first half of 2003 are anticipated to be flat to
slightly positive compared to the first half of last year.

Throughout the first half, demand for rough diamonds from the cutting centres
was strong largely due to a willingness to hold higher levels of inventory as
interest rates continued to decline.  Sales by the DTC, the marketing arm of De
Beers, for the first six months of 2003 totalled US$2,920 million, 2.75% higher
than the equivalent period in 2002.  De Beers' results for the six months ended
30 June 2003 include headline earnings of US$414 million, 34% higher than for
the first half of 2002, a reduction in diamond stocks of over US$600 million
during the period and operating cash flow generated of US$1.1 billion.  If the
strong demand for rough diamonds continues through the second half, De Beers'
results for the year as a whole should be ahead of the previous year.

In view of the exceptionally strong operating cash flow generated in the
two-year period to June 2003, De Beers has decided to refinance its existing
bank facilities by replacing the existing term loan and revolving credit
facilities, arranged on leveraged buyout terms, with a five-year US$2.5 billion
Syndicated Multi-Currency Revolving Credit facility on standard commercial
terms.  Syndication was launched on 26 June and has recently been successfully
completed.

Following clearance, in January, from the European Commission of its Supplier of
Choice strategy, the DTC embarked on a rigorous process of assessing prospective
and existing clients against diamonds they were applying for and the DTC's own
availabilities.  As a result of this process, applicants were recently advised
as to their future status as Sightholders of the DTC.  All successful applicants
are being supplied by the DTC with effect from July.  Existing clients who did
not qualify as Sightholders under Supplier of Choice are continuing to be
offered supplies by the DTC for the remainder of the year.

De Beers and the Russian diamond producer, Alrosa, have continued to engage in
constructive dialogue with the European Commission to address its concerns
relating to the five-year trade agreement jointly notified to the Commission for
clearance in March 2002.

De Beers announces interim results as follows:


                            De Beers Societe Anonyme
                         Consolidated Income Statement
                      for the half-year ended 30 June 2003

                                   (Abridged)
                                                                       US Dollar millions

                                                            6 months to      6 months to       12 months to
                                                                30 June     30 June 2002   31 December 2002
                                                                   2003
Diamond sales
     -DTC                                                         2 920            2 842              5 154
     -Other                                                         201              197                380
Trade investment and other income                                   258              305                592
                                                                  3 379            3 344              6 126
Deduct:
Cost of sales                                                     2 469            2 518              4 444
Depreciation and amortisation (Note 1)                              128              114                250
Sorting and marketing                                               214              198                398
Exploration and research                                             64               47                126
Corporate expenses                                                   23               18                 42
Net diamond account                                                 481              449                866
Add:
Surplus on realisation of fixed assets and                                             2
investments
                                                                    481              451                866
Deduct:
Net interest paid                                                    54               76                144
Costs related to reorganisation and restructuring                     5               24                 44
Net income before taxation and debt redemption costs                422              351                678

Taxation                                                            112              115                271
Net income after taxation but before debt redemption                310              236                407
costs
Attributable to outside shareholders in subsidiaries                 10                6                 14
Own earnings before debt redemption costs                           300              230                393

Share of retained income of joint ventures                          103               31                 41
Total net earnings before debt redemption costs                     403              261                434

Costs of early debt redemption (Note 3)                              95

Total net earnings                                                  308              261                434


Headline earnings

Total net earnings                                                  308              261                434
Adjusted for :

Amortisation of intangible fixed assets                              84               81                163

After tax surplus on realisation of fixed assets                    (3)             (34)               (27)
less costs related to restructuring and provisions
Facility fees  (Note 3)                                              25
Headline earnings                                                   414              308                570

Cash available from operating activities                          1 115            1 144              1 611



                          Consolidated Balance Sheet
                                  30 June 2003

                                   (Abridged)

                                                                      US Dollar millions

                                                         30 June 2003        30 June 2002   31 December 2002


                                                                4 458               3 784              4 023
Shareholders' interests
Outside shareholders' interests                                   109                  89                 96
                                                                4 567               3 873              4 119
Net interest bearing debt (Note 2)                                927               2 081              1 716
Other liabilities                                               1 031                 850                958
                                                                6 525               6 804              6 793

Fixed assets                                                    4 690               4 284              4 405
Investments and loans                                              49                  25                 33
Diamond stocks and other assets                                 1 786               2 495              2 355
                                                                6 525               6 804              6 793


Notes and Comments
     
1.   Amortisation amounting to US$72 million in respect of the goodwill
     attributable to De Beers Consolidated Mines Limited and De Beers Centenary 
     AG has been expensed in the current period. US$144 million was expensed 
     during the year ended December 2002.

2.   Cash has been offset against interest bearing debt.
     
     A further repayment of US$355 million was made on the Senior Debt facility 
     on 10 March 2003 which reduced the outstanding debt to US$2,130 million. 
     The US$1 billion revolving credit facility was not utilised during the 
     period under review.

     The Senior Debt and revolving credit facilities, arranged on leveraged 
     buyout terms, have been replaced with a US$2.5 billion revolving credit 
     facility on standard commercial terms with a five year tenor.
     
3.   The costs associated with the early debt redemption referred to in note 2 
     have been expensed in the current period. These costs comprise the balance 
     of US$25 million of facility fees not yet amortised, and US$70 million in 
     respect of the mark-to-market of interest rate hedging contracts that were
     required to be entered into under the terms of the original Senior Debt
     facility. These contracts were being hedge accounted in terms of AC133
     (Financial Instruments: Recognition and Measurement).


       US$2.5 billion Syndicated Multi-Currency Revolving Credit Facility

De Beers S.A. ("De Beers") is pleased to announce that a US$2.5 billion
Syndicated Multi-Currency Revolving Credit Facility (the "Facility") has been
successfully arranged by Barclays Capital, Citigroup Global Markets Limited ("
Citigroup"), Dresdner Kleinwort Wasserstein ("DrKW"), Royal Bank of Scotland and
WestLB (the "Mandated Lead Arrangers") on its behalf. Barclays Capital,
Citigroup, and DrKW have been appointed Bookrunners and Dresdner Bank Luxembourg
S.A. has been appointed Agent.

Syndication was launched 26 June, 2003 and has recently been completed. The
transaction, which was aimed at a selected group of De Beers' relationship
banks, was oversubscribed raising in excess of US$ 3 billion. More than 25 banks
representing 11 different countries have joined the facility, which is expected
to be signed on 30 July, 2003.

The Facility has a tenor of five years. It will refinance the Company's existing
US$4.55 billion syndicated loan facility signed in March 2001 and will also
serve for general corporate purposes.

Contacts:

De Beers London:
Lynette Hori                          [phone]/[phone]

De Beers South Africa
Brian Roodt                           [phone]/[phone]
Pride Mogorosi                        [phone]/[phone]


Visit the official De Beers Group website for more information on the company
and where you can view and download a selection of images -
www.debeersgroup.com.



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