1998 Interim Results Announcement

30th April, 1998

ORICA (FORMERLY ICI AUSTRALIA) IMPROVES EARNINGS PER SHARE DESPITE ASIAN SLOWDOWN AND WILL BECOME THE WORLD'S LARGEST EXPLOSIVES COMPANY PROFIT

Earnings per Share before abnormal items for the half year to 31 March 1998 improved 13% to 42 cents from 37 cents in the first half last year, this is equal to the highest earnings per share ever achieved by the company in the first half. After abnormal items earnings per share increased by 7% to 40 cents. The profit after tax and before abnormal items was $113 million, up 2% on the previous corresponding period. The profit after tax and abnormal items was $106 million, down 4% from the previous corresponding period. After Tax before Abnormals First Half 1998 First Half 1997 % EPS cents 42 37 +13 Profit $M 113 111 +2 After Tax & Abnormals EPS cents 40 37 +7 Profit $M 106 111 -4

INTERIM DIVIDEND
The Directors have declared an interim dividend of 21 cents per share fully franked at 36% an increase of 5% over the previous year.

INTERNATIONAL EXPLOSIVES ACQUISITION
The purchase of the International Explosives business from ICI PLC is expected to be completed on 1 May 1998 making Orica the world's leading commercial explosives supplier, with sales of approximately $1,300 million in this sector. This acquisition had no effect on the results of this period.

BUSINESS PERFORMANCE
Group sales were $1.8 billion, up 6% from $1.7 billion for the first half of the 1997 year. Operating Profit before Tax and Abnormal Items was $178 million, down 5% from $187 million last year. Income tax rate was reduced from 36% to 31%. During the half year many of the businesses increased their sales due to improved sales volumes, despite the impact of the Asian economic slowdown. The benefit of these increases however, was offset by the significant falls in the international prices of chemicals, plastics and fertilizers. While the lower Australian dollar lessened the impact of lower prices, it remained a difficult pricing environment. The company's success at reducing costs in recent years made an important contribution to maintaining profitability.

Fertilizers and Crop Care

The Crop Care business continued to grow with favourable seasonal conditions in most key market areas. Fertilizers also benefited from volume growth with strong demand across the product range, but prices were lower than last year, particularly international urea prices, which had a significant impact on fertilizer profits.

Chemicals

Higher sales due to improved volumes were offset by lower prices leading to a reduction in trading profit. The low domestic prices for caustic soda continued through most of the half with the benefits of higher international prices only starting to flow through late in the half. The expansion of the Surfactants plant was completed during the half improving the performance of the business. The Trading business also achieved improved volume but had lower margins due to the fall in international chemical prices. The EDC plant at Botany closed in March this year as previously announced.

Mining Services

The Explosives business maintained its market share and overall profit in a competitive market. The fall in gold price during 1997 resulted in some mine closures which reduced the demand for both explosives and sodium cyanide. Explosives sales were flat with decreases in sales to the gold sector offset by improvements in coal and base metals. The profitability of the mining chemicals business was also affected by a significant fall in international sodium cyanide prices.

Plastics

The significant restructuring of the business and the investment in the ethane pipeline provided benefits as the business delivered much better profit performance during the half. While Asian polymer prices fell in US dollar terms the Australian dollar prices have been largely unchanged.

The Australian Vinyls Corporation (AVC) joint venture with Geon also delivered a significantly improved performance benefiting from the integration of the 2 businesses. The extensive restructuring in the Australian Plastics Industry continued with the sale of the company's polypropylene and polypropylene films businesses being completed during the half.

Consumer Products

Consumer Products maintained profitability in an increasingly competitive market. Decorative Paints sales increased due mainly to higher volumes. Gross margin rates remained at a similar level to last year as improved selling prices offset the increased cost of raw materials. Fixed costs rose mainly due to increased marketing expenditure. Sales of Technical Paints were lower with reduced demand in export markets. Selleys sales increased with higher volumes. The H B Fuller powder coatings business in New Zealand was acquired in March 1998. Advanced Sciences

The Pharmaceuticals business continued its excellent performance growing strongly. The Adhesives & Resins business encountered difficult trading conditions, while Polyurethanes maintained its performance in a flat market. ABNORMAL ITEMS The restructuring and rationalisation program, (commenced in 1994) is continuing across the company and resulted in an abnormal charge of $6 million after tax in this half, there were no abnormal items in the first half last year. FINANCIAL POSITION Gearing is now at 37% and interest cover at 8.6 times compared to 36% and 11.9 times at 30 September 1997. Capital Expenditure has been $137 million for the half year the same as the previous corresponding period. Superannuation As stated previously, the company has not been contributing to the defined benefits superannuation scheme as fund assets have been well in excess of liabilities. This position is projected to end sometime this year, with a partial contribution necessary later in the year. It is estimated that a full year contribution of between $40 - $50 million before tax will be necessary in the 1998-99 year. Millennium Compliance Orica has adopted a Year 2000 strategy. The compliance program is expected to be completed by the end of 1998 and progress of the program is reviewed regularly by the company's auditors. Final Dividend - Franking Based on current expectations the final dividend (to be paid 18/12/98) will not be fully franked. SIGNIFICANT EVENTS Pharmaceuticals Sale Orica and Zeneca did not reach agreement on the price to be paid for the Pharmaceuticals business during negotiations last year. Differences which arose between the parties as to the interpretation of certain provisions of the agreement have resulted in Zeneca instituting proceedings in the Chancery Division of the High Court of England. Those proceedings are currently in progress. Orica expects the sale of the Pharmaceuticals business to be completed once the legal issues relating to the sale have been resolved. Until the legal issues are resolved and the transfer of the business is finalised, Orica will continue to operate and enjoy the benefits of this highly successful business. OUTLOOK The extent of the impact of the Asian economic slowdown on the world economy and in particular the Australian economy remains unclear. While the fall in the Australian dollar has limited the impact on local prices to date, we expect soft international plastic, fertilizer and chemical prices to continue for some time. These market conditions will maintain pressure on both volumes and margins. In this difficult economic environment the company is focussed on developing its core growth platforms and improving the world competitiveness of its business portfolio. It remains committed to industry rationalisation and improving the return on underperforming assets through restructuring and cost reduction programs.

CALENDAR

ATTACHMENT 1

ORICA LIMITED

Summary of Consolidated Results for six months to 31 March 1998