DMR Dimension Res.S

RNS Number:2260C
Dimension Resources Ld
23 August 2004



DIMENSION RESOURCES LIMITED



CHAIRMAN'S STATEMENT


At the company's Annual General Meeting held on Monday 23 August 2004 the
following statement was made by the chairman:

"Since my statement in the 2003 annual report trading at the group's principal
subsidiary in South Africa, Natural Stone Industries Limited, has remained
difficult. Further breakdowns to key equipment have reduced production
capability at the quarries, and the continued strength of the Rand against the
US Dollar, in which sales are priced, have adversely affected cash flow.

The Directors have therefore decided to take urgent steps to protect its cash
resources. To this end it has been decided to close the Group's processing plant
at Vredendal, together with the retail showroom in Somerset West which sells the
factory's products to the retail market. No new orders are being accepted at the
factory and redundancy notices have been issued. The Group's main quarries,
which have substantial orders in hand, will remain open. The board is urgently
seeking ways to finance new and reliable equipment for these quarries to
increase production and therefore income.

The Group remains virtually debt free, having only a small overdraft facility in
South Africa, together with a finance lease on a front end loader. Its assets
include the freehold factory in Vredendal, and a freehold office block in
Somerset West, which secures the Group's rehabilitation liabilities, as well as
its quarries and equipment.

Shareholders will be informed of future developments.


Brian Moritz (Chairman)
23 August 2004


Embargoed to 3.30p.m. on Monday 23 August 2004


                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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