49IA Hsbc Bk.22

RNS No 6870w
PACIFIC DUNLOP LTD
19th March 1998

PACIFIC DUNLOP ANNOUNCES REVIEW OF GNB

Pacific Dunlop Limited said today it had appointed J P Morgan and Co and Zilkha
& Co as advisers to assist in evaluating options for the future of its GNB
Technologies business.

Mr Chadwick said GNB Technologies had excellent brands and proprietary
technology which Pacific Dunlop believed could achieve fuller value in the hands
of another organisation, and this option was now being actively pursued.

He said GNB represented a significant opportunity in the North American
automotive battery industry, and its industrial battery business has good global
growth propects.

GNB, which was purchased by Pacific Dunlop in 1987 and which is headquartered in
Atlanta, U.S., is one of the world's largest manufacters of automotive and
industrial batteries with annual sales of A$1.2 billion.  It manufactures
batteries under the Champion, Marshall, Absolyte, Marathon and Sprinter brands
in 18 plants in the USA, Australia and New Zealand.

In announcing the decision, the Managing Director of Pacific Dunlop, Mr Rod
Chadwick said: "This initiative follows the recently announced sale of part of
the Cables Group, closure of the Geebung cable factory in Brisbane,
restructuring of Pacific Brands and further investment foreshadowed by Ansell.

"We are also strengthening the focus of all operations to greater innovation
which gives us product or market leadership and strong international
competitiveness.  This will mean increased investment in product development,
increased capital allocation to higher performing businesses, increased
accountability and more active portfolio management.

"These objectives will be better served by a reduced spread of businesses and
consolidation of manufacturing into fewer, more strategically located facilities
with greater automation and better volume-based economies of scale."

Mr Chadwick said the appointment announced earlier this month of Dr John Eady as
Executive General Manager, Manufacturing, was specifically designed to
facilitate this process, which is expected to deliver substantial profit
improvement.

Mr Chadwick confirmed Ansell International was seen as Pacific Dunlop's major
source of profit growth in the immediate and longer term.

"This technology-driven business of Australian origin has sound growth prospects
still ahead of it in existing and untapped markets," he said.

"Pacific Dunlop is committed to the growth of Ansell as a truly global business
with world leadership in latex and protective products."

Mr Chadwick said Pacific Dunlop's restructured Energy and Construction cable
businesses, South Pacific Tyres, Pacific Distribution and Pacific Brands Groups
were also focusing on measures to improve their performance.

"Each has strong market and brand leadership positions, which give them good
growth and profit improvement capacity domestically and regionally,
notwithstanding the present subdued economic conditions in some of their
markets," he said.

"Although these conditions may continue to hamper performance, we are confident
of the improvement which this range of initiatives will bring beyond the pre
sent financial year.

"In summary, I believe this series of initiatives, including the decision on
GNB, will ultimately be seen to mark the beginning of a new phase for the
Company."

For further information:      John Hine
                              General Manager Corporate Affairs
                              Pacific Dunlop Limited

                              (03) 9270 7140
                              (0412) 254 952

END


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