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    JOHANNESBURG, South Africa, Sept. 8 /PRNewswire-FirstCall/ --
    - Operating profit up 32% to R34 billion
    - Headline earnings per share up 50% to R38,09
    - Final dividend up 58% to R9,35 per share
    - Continued production volume growth
    - Operational efficiency improvements at existing businesses
    - Delivering on growth projects
    - Improved safety performance
    - R24 billion Sasol Inzalo BEE transaction implemented
    - Oryx GTL production in Qatar ramps up

Overview

'Our robust financial performance together with continued progress in our capital projects and a strong focus on operational performance will ensure sustainable future growth for all our stakeholders. The implementation of the Sasol Inzalo BEE deal which will contribute to sustainable skills development for Sasol and South Africa has been a major highlight for the year,' says chief executive Pat Davies.

Earnings attributable to shareholders for the year ended 30 June 2008 increased by 32% to R22,4 billion from R17,0 billion in the previous financial year, while earnings per share and headline earnings per share increased by 36% and 50%, respectively, over the same period, to R37,30 and R38,09, respectively.

Operating profit increased by 32% on the previous financial year to reach a record of R34 billion. Operating profit was boosted by higher crude oil prices (average dated Brent was US$95,51/barrel in 2008 compared to US$63,95/barrel in 2007) and higher product prices as well as a marginally weaker average exchange rate (R7,30/US$ in 2008 compared to R7,20/US$ in 2007), which were partially offset by softer refining margins. The operating profit included net hedging losses of R2,3 billion realised for the financial year due to the average crude oil price exceeding the hedge zero cost collar cap of US$76,75/barrel as well as a R1,4 billion share-based payment expense related to the Sasol Inzalo black economic empowerment (BEE) transaction.

'Higher product prices together with higher volumes and a focus on cost containment have enabled the company to deliver superior returns to our shareholders. Improved cash flows have sustained a healthy balance sheet positioning the company well for future growth amidst uncertain credit markets,' says chief financial officer Christine Ramon.

The increase in cash fixed costs has been contained within inflationary levels, excluding the effects of once-off costs and growth initiatives.

Cash of R34,7 billion generated by operating activities represents a 22% increase on the previous financial year.

Existing businesses delivering record profits

South African energy cluster

Sasol Mining - higher coal prices and greater sales volumes

Operating profit of R1 393 million was 19% higher than the previous year, primarily due to higher export coal prices, greater sales volumes at higher prices to Sasol Synfuels and improved coal quality. This increase was partially reduced by lower sales volumes to external domestic and international markets as well as increased production and export distribution costs.

Sasol Gas - increased sales volumes to new and existing customers

Operating profit decreased by 8% to R1 785 million compared to the previous year, due to the impact of once-off items. On a comparable basis however, operating profit increased by 14%, after taking into account the sale of the 25% of the Republic of Mozambique Pipeline Investments Company (Pty) Limited in the prior year and an impairment of a portion of a pipeline in the current year. Improved sales volumes to new and existing customers on the back of higher crude oil prices and foreign exchange gains contributed to the increase in operating profit.

Sasol Synfuels - delivered increased production volumes and benefiting from higher oil prices

Operating profit increased by 19% to R19 416 million compared to the prior year on the back of higher oil prices and a weaker rand/US dollar average exchange rate for the year. Production volumes were marginally higher due to increased production efficiency resulting from increased natural gas intake although this benefit was partially reduced by production instabilities, which have since been addressed. Synfuels' operating profit included a net oil hedge loss of R2,2 billion for the year.

Sasol Oil - higher production and sales volumes with increased fuel prices

Operating profit increased by 128% to R5 507 million compared to the prior year benefiting from stronger product prices coupled with higher production volumes at the Natref refinery and higher sales volumes. Increased sales volumes were underpinned by the growth in the commercial business and the additional retail convenience centres which grew to 406 from 391 in the previous year.

International energy cluster

Sasol Synfuels International (SSI) - Oryx GTL plant ramps up production, activities in China and India advance

Operating losses decreased by 19% to R621 million compared to the prior year largely due to the net positive contribution of the Oryx GTL plant. The operating loss also includes an impairment of the Escravos GTL (EGTL) project amounting to R362 million (net effect after tax of R112 million) relating to interest previously capitalised on the capital expenditure, and costs relating to increased project activities in China and India. We have decided to reduce our 37,5% interest in the EGTL project to 10%. We have classified the interest in EGTL as an asset held for sale in terms of IFRS5. Our remaining 10% interest will be classified appropriately upon conclusion of the agreements.

Sasol Petroleum International (SPI) - increased production from Gabon and Mozambique operations with benefits from higher crude oil and gas prices Operating profit increased by 235% to R1 004 million compared to the previous year, benefiting from higher crude oil and gas prices and increased sales volumes from our Gabon and Mozambique operations. SPI's operating profit included a net oil hedge loss of R75 million for the year.

Chemical cluster

Sasol Polymers - commissioning new capacity with increased margins

Operating profit increased by 39% to R1 511 million, on the back of increases in margins, volumes and foreign exchange gains. Production increased mainly due to the commissioning of the polypropylene plant and the start up of the Arya Sasol ethane cracker in Iran. Overall production volumes were, however, lower than expected due to lower feedstock availability from the Selective Catalytic Cracker (SCC).

Sasol Solvents - strong margins drive performance

Operating profit increased by 115% to R2 382 million on the back of strong global demand resulting in improved margins which negated the impact of higher feedstock costs. Improved reliability in our plants contributed to increased total production volumes, although our German operations, comprising about 30% of turnover, reduced production due to market conditions.

Sasol Olefins & Surfactants - continued restructuring delivers benefits

Operating profit increased by 33% to R1 512 million compared to the previous year mainly as a result of some improvement in margins and initial benefits from the restructuring process which included the shutdown of the Baltimore and Porto Torres linear alkyl benzene plants as well as cost reductions in all remaining units. A 50% alcohols joint venture plant with a capacity of 60 000 tons per annum was successfully commissioned in Lianyangang, China.

Other chemical businesses - volume growth and improved product margins in our Nitro and Wax businesses

Operating profit increased by 25% to R1 200 million compared to the previous year due to improved product margins and volume growth in the other chemical businesses before taking into account once-off items. Once-off items totalling R229 million mainly relate to the foreign exchange loss of R557 million on an inter group loan, the profit on the sale of Paramelt RMC BV, the profit on the sale of Sasol Dyno Nobel (Pty) Limited and the reversal of the impairment of R94 million and other provisions previously recognised in respect of the Phalaborwa site due to a change in their business plan.

Delivering on sustainable growth

Sasol's focus on safety and commitment to sustainable development has delivered results:

-- The recordable case rate for employees and service providers, including injuries and illnesses, improved to 0,50 as at 30 June 2008 from 0,72 as at 30 June 2007.

-- Our energy-efficiency initiatives continue to reduce our energy consumption and our environmental footprint. In South Africa, Sasol already generates a substantial amount of its own energy requirements.

-- The Sasol Inzalo broad-based black economic empowerment (BEE) transaction has contributed to the economic well-being of the Republic of South Africa by facilitating the addition of over 300 000 historically disadvantaged individuals to our shareholder base.

Black economic empowerment advanced

-- The Sasol Inzalo BEE transaction for a 10% equity ownership at Sasol Limited level, currently valued at R24 billion, was approved overwhelmingly by shareholders on 16 May 2008.

-- The second phase of Sasol Mining's empowerment transaction, valued at R1,9 billion, was announced in October 2007. This transaction will focus on developing relevant skills and building capacity amongst women in the mining industry.

-- Procurement from BEE entities increased by 7% to R4,5 billion (representing 25% of our controllable spend) for the year ended 30 June 2008.

Delivering on growth projects

Cash spent on capital projects amounted to R11 billion. Major projects advanced including:

-- With the majority of teething problems behind us, the ramp up of the Oryx GTL plant in Qatar met our expectations during the year. During June 2008, the plant operated at an average of above 22 000 barrels per day. The superior quality GTL products produced at the Oryx GTL plant have been well accepted in the market, with GTL diesel commanding premiums over crude-derived diesel products.

-- The SCC at Sasol Synfuels in South Africa commenced beneficial operation in January 2008. The SCC is operating stably but is yielding lower than design volumes at present and will undergo additional remedial engineering work in March 2009 during its first statutory scheduled maintenance shutdown.

-- The cracker in the Arya Sasol Polymer complex in Iran was commissioned in November 2007 and has produced more than 200 000 tons of ethylene so far, which was mostly exported. The low density polyethylene plant started up in May 2007 and is expected to reach beneficial operation in the fourth quarter of this calendar year, while the medium and high density plant started up in August 2008 and is on a similar schedule for beneficial operation.

-- The Octene 3 plant in South Africa, which produces high quality 1-Octene as a co-monomer for the polyethylene market, achieved beneficial operation in June 2008. This new plant has the capacity to produce 100 000 tons per annum. It is anticipated that, by the middle of the 2009 calendar year, our production capacity for 1-Octene and 1-Hexene will reach 356 000 tons per annum.

-- The development of the EGTL plant in Nigeria is advancing, but the project is experiencing significantly higher than expected capital cost increases. Capital costs are currently estimated to be US$6 billion with a completion date of 2011. In order to mitigate this risk, Sasol has in principle agreed with Chevron to reduce its interest in the EGTL project to 10%, while still providing full technical and manpower support to the project.

-- In China, our feasibility study into CTL opportunities has been rescoped to comprise a single CTL plant of 80 000 barrels per day located in the Ningxia Hui Autonomous Region.

-- In South Africa, we continue our feasibility study into expanding capacity at Secunda, as well as our pre-feasibility study into a new CTL plant of 80 000 barrels per day (Project Mafutha).

Gearing - improved cashflows from operations and positive Sasol Inzalo BEE transaction impact

Gearing has decreased from 22,0% at 30 June 2007 to 20,5% at 30 June 2008, primarily due to improved cash flows from operations and the cash inflows from the Sasol Inzalo BEE transaction.

During the year, the company repurchased a total of 22 173 525 Sasol ordinary shares at an average price of R329,23 per share. Total shares repurchased since the inception of the programme in March 2007 represents about 5,88% of the issued share capital at the approval date of the share repurchase programme and 5,86% of the issued share capital at 30 June 2008, excluding the shares issued in terms of the Sasol Inzalo share transaction.

Profit outlook - increased production, higher crude oil prices expected to benefit earnings for 2009

Production at the Arya Sasol Polymer plant, the Oryx GTL facility and the Octene 3 plant will be ramping up further during 2009. We also expect to increase production at our Sasol Synfuels operation.

Based on overall improved production volumes, a modest increase in the average crude oil price, marginally weaker exchange rate and softer refined product price and chemical price assumptions relative to 2008, the earnings for 2009 are expected to reflect robust growth on 2008. The effects of our BEE transactions, which are expected to have material non-cash accounting effects, have not been taken into account in this profit outlook.