Interim Management Statement

Interim Management Statement

Barloworld Limited

("Barloworld or the Company")

Trading update

Group results for the first quarter 2011 have improved considerably compared to the corresponding period last year.

Operating profit in Equipment Southern Africa improved significantly compared to the first quarter of 2010, due to improved mining, contract mining and after sale activity. Construction in South Africa remained weak and this is expected to continue for the year. Activity levels in Mozambique, Namibia and Zambia are strong, however, Angola continued to be subdued with some recovery anticipated in the second half of 2011. The firm order book at December was in excess of R4 billion which in US dollar terms is at a historical high.

In November 2010 Caterpillar Inc. announced their intention to acquire Bucyrus International for $8,6 billion. Caterpillar has indicated that they expect the transaction to be completed by mid 2011. Once completed, their combined product range will be vastly enhanced which should give Barloworld the ability to expand its participation in mining equipment solutions.

The Spanish economy remains weak with little sign of recovery. However, we were recently awarded a significant machine contract with a large Spanish contractor, albeit at a lower margin mainly due to a major portion of the package destined for their international operations. A restructuring charge of €4,3 million (R39 million) has been incurred to realign the expense base with prevailing activity levels.

Since the announcement in November, all regulatory approvals have been received in respect of the acquisition of the remaining 50% in the Russian equipment business. We have consolidated the results of that business from 1 October 2010. Trading results for the first quarter are better than expected due to a large delivery of machines in December. The firm order book at December remains strong and we therefore expect this positive trend to continue.

The Automotive division is experiencing mixed trading conditions. Car rental rates and volumes remain under pressure while utilisation continues to be well managed. The unusually high used vehicle profits achieved in the first half of 2010 have normalised. The motor retail operations in Southern Africa experienced improved new vehicle sales, albeit at lower margins. The Australian operations continue to show growth. The fleet services business is performing well. The repayment of the outstanding NOK 150 million (R170 million) in respect of the disposal of the Scandinavian car rental business was received in full in the first quarter, bringing the transaction to completion.

Activity levels continue to improve in Handling due to increased sales in all business units apart from agriculture. Handling in South Africa and The Netherlands as well as agriculture were profitable in the first quarter and losses in all other business units are reduced from last year's levels.

Trading conditions within the Southern African Logistics businesses are improving as a result of an increase in contract volumes and the addition of new contracts. However, trading conditions in the other territories remain difficult. Internationally, the proposed disposal of the African and Asian Freight Management and Services' non-corporate trader business is proceeding according to plan and should be completed before the half year. This is below the JSE transaction thresholds and is for information purposes only.

Net debt levels are expected to increase in the first half of the year following the acquisition of Equipment Russia for $52 million (R 361 million) together with associated net debt. Furthermore, we have seen some increase in working capital in both Equipment Southern Africa as well as our Automotive business in line with increased activity levels. However, net gearing is expected to remain well within our target ranges.

Sandton Sponsor:

25th January 2011 J.P. Morgan Equities Ltd.

Barloworld is a distributor of leading international brands providing integrated rental, fleet management, product support and logistics solutions. The core divisions of the group comprise Equipment (earthmoving and power systems), Automotive (car rental, motor retail and fleet services), Handling (materials handling and agriculture) and Logistics (logistics management and supply chain optimisation). We offer flexible, value adding, integrated business solutions to our customers backed by leading global brands. The brands we represent on behalf of our principals include Caterpillar, Hyster, Avis, Audi, BMW, Ford, General Motors, Mercedes-Benz, Toyota, Volkswagen and others.

Barloworld has a proven track record of long-term relationships with global principals and customers. We have an ability to develop and grow businesses in multiple geographies including challenging territories with high growth prospects. One of our core competencies is an ability to leverage systems and best practices across our chosen business segments. As an organisation we are committed to sustainable development and playing a leading role in empowerment and transformation.

The company was founded in 1902 and currently has operations in 38 countries around the world with approximately 60% of our eighteen thousand employees in South Africa.

Corporate information

Registered office and business address

Barloworld Limited, 180 Katherine Street

PO Box 782248, Sandton, 2146, South Africa

Tel: +27 11 445 1000

Email: invest@barloworld.com

Transfer secretaries - South Africa

Link Market Services South Africa (Proprietary) Limited

(Registration number 2000/007239/07)

11 Diagonal Street, Johannesburg, 2001

(PO Box 4844, Johannesburg)

Tel: +27 11 630 0000

Registrars - United Kingdom

Equiniti Limited, Aspect House, Spencer Road

Lancing, West Sussex, BN99 6DA, England

Tel: +44 190 383 3381

Transfer secretaries - Namibia

Transfer Secretaries (Proprietary) Limited

(Registration number 93/713)

Shop 8, Kaiser Krone Centre, Post Street Mall

Windhoek, Namibia

(PO Box 2401, Windhoek, Namibia)

Tel: +264 61 227 647

Directors

Non-executive: DB Ntsebeza (Chairman), SAM Baqwa, AGK Hamilton*, S Mkhabela, MJN Njeke, SS Ntsaluba, TH Nyasulu, G Rodriguez de Castro de los Rios†, SB Pfeiffer•

Executive: CB Thomson (Chief Executive), PJ Blackbeard, PJ Bulterman, M Laubscher,

OI Shongwe, DG Wilson

*British •American †Spanish

Enquiries: Barloworld Limited: Jacey de Gidts

Tel +27 11 445 1000

E-mail invest@barloworld.com

College Hill: Jacques de Bie, Tel +27 11 447 3030

E-mail Jacques.deBie@collegehill.co.za

For background information visit www.barloworld.com