49IA Hsbc Bk.22

RNS No 6970w
PACIFIC DUNLOP LIMITED
23rd July 1998


INTERIM SETTLEMENT IN US ACCUFIX LITIGATION

Pacific Dunlop Limited today announced that the US District Court in Cincinnati
has given interim approval to a proposed settlement by its subsidiary Accufix
Research Institute Inc (ARI) and the other defendants, including Pacific Dunlop,
to resolve all current and future litigation in the US arising out of the
Accufix Atrial J Pacemaker Lead formerly manufactured by ARI. 

The settlement provides for the payment by ARI of US$47.3 million (A$77.2
million) and Pacific Dunlop US$10 million (A$16.3 million) to a special
Patient Benefit Fund to be established as part of the settlement agreement.  The
purpose of the Patient Benefit Fund is to satisfy present and future damages
claims made by persons implanted with the Accufix Pacemaker Lead and their
families, and to meet all future unreimbursed US medical costs and patient
monitoring payments related to the Accufix Pacemaker Lead.  The Fund will be
administered by a Master appointed by the Court. 

The Court decision halts 494 pending US lawsuits.  It follows an earlier
settlement by the insurers of all outstanding Accufix litigation in Canada in
October, 1997, and the preliminary settlement announced last month of all claims
of Australian patients whose Accufix Pacemaker leads had been or will be
explanted.

The settlement is subject to a formal review as to its fairness by the US
District Court in Cincinnati on November 19, 1998.  Approval at this hearing,
subject to appeal, would make the settlement binding on all Accufix patients in
the US, including persons claiming through them, and will ensure that no further
lawsuits relating to the Accufix Pacing Lead can be brought in the future.

Welcoming the settlement, the Managing Director of Pacific Dunlop, Mr Rod
Chadwick, said: "We are pleased that this protracted and unfortunate experience
now appears to be behind us, and that it has been reached without any admission
of liability.

"The settlement is a sensible outcome for all concerned.  Once confirmed, the
settlement will remove a major distraction for management as well as the
prospect of drawn-out, expensive Court proceedings for all those involved.  Most
importantly, the settlement will provide certainty and comfort for the patients
and their families, which has always been a prime concern of ARI."

In addition to the establishment of the Patient Benefit Fund, the settlement
provides that the ARI's remaining cash will be applied to three further funds
which:

- Allow ARI and the other defendants to utilise up to US$4 million (A$6.5
  million) in a Reserve Fund to recoup any costs of enforcing the settlement
  against plaintiffs and their attorneys who attempt to continue to litigate.

- Allow ARI to retain US$6.7 million (A$11.1 million) in a special Litigation
  Fund to meet future non-Accufix product liability or other claims that may be
  made upon it.

- Allow ARI to utilise the remainder of its available funds of approximately
  US$20.5 million (A$33.5 million) for its continuing operation including
  clinical studies, patient management recommendations and compliance with
  regulatory authorities worldwide.  ARI will deposit these funds in a separate
  Court-administered Operating Fund.

Any surplus from the Litigation Fund and the Operating Fund will be either
added to the Patient Benefit Fund or distributed to charity at the discretion of
the Court Master in the event ARI is liquidated. Any surplus from the Reserve
Fund will be added to the Patient Benefit Fund three years after the final
formal approval to the settlement is granted by the US District Court.

In summary, the settlement provides for payments of no more than A$144.6
million.

Further, an additional A$23.4 million will be provided to enable various
members of the Group to meet future commitments of the former Telectronics
business not related to this settlement.

Provisions of A$100.0 million already exist within ARI and other Group
companies.  As a result, a further amount of A$68 million after tax must be
provided and this will be recorded in the 1998 Group financial accounts as an
abnormal charge.

Non-US Lawsuits

Settlement of the US litigation (following previous settlements by the insurers
in Canada and Australia) leaves a total of 13 individual lawsuits pending in
four countries and comprises one class action on behalf of persons with working
leads in Australia and 12 individual actions (five in England, three in France
and Germany and one in Turkey).


For further information: John Hine
                         General Manager Corporate Affairs
                         Pacific Dunlop Limited
                         61 3 9270 7140
                         0412 254 952


END

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