Orica Streamlines Corporate Centre

13th August, 1999

Orica Limited today announced important changes to its corporate centre which will redefine its alignment with the business platforms and its delivery of the Company's shareholder value objectives.

Following a comprehensive review of all of the support functions at both the business and corporate levels, the majority of the Information Technology, Engineering, Finance and Human Resources functions will be transferred into a best practice shared services facility located at Orica's Ascot Vale site in Melbourne. The shared services facility will provide support services to all of the Company's businesses in Australia and New Zealand.

Orica managing director and chief executive officer, Philip Weickhardt said " Our portfolio strategy so far has been about building on our strengths, focussing on those business areas where we have the greatest competitive advantages. However, we also recognised how vital it was that we support those businesses with the most efficient, cost effective services possible. The consolidated model we have developed will deliver best practice services at best practice costs.

"This decision is expected to realise cost benefits of approximately $45 million per annum when fully implemented and represents a major contribution to our commitment to deliver increased value of $120 million over the two years to September 2001.

"Equally important features of these changes will be a significantly smaller head office organisation with more sharply focussed accountabilities for the Company's overall performance."

As a consequence of these actions and with the Orica Group businesses already largely established at other locations, the requirements for office accommodation will fall dramatically and the company now plans to vacate its building at 1 Nicholson Street, its head office for the past 40 years. A new, smaller corporate centre to give strategic direction to the international Orica organisation will be established in the inner Melbourne area.

While the support functions are already well underway in establishing their new operational structure, the physical moves are expected to occur towards the middle of 2000.

"There will be a natural tinge of nostalgia when we move from our current head office building. As ICI House, it was something of a Melbourne icon. It has served us tremendously well over the past 40 years, but our company is quite different now, with different needs. It is time to move on." Mr. Weickhardt said.