Joint Venture Agreement with Boncafe International Pte Ltd

Pursuant to Clause 904(1)(C), Fraser and Neave Limited ("F&N") announces that its wholly-owned subsidiary, F&N Dairy Investments Pte Ltd ("F&NDI"), has entered into a joint venture agreement with Boncafe International Pte Ltd ("Boncafe"). F&NDI will own 60% interest in the share capital of the joint venture company to be incorporated and Boncafe will own the remaining 40% interest. It is intended that the issued and paid-up capital of the joint venture company will be S$500,000.

Under this joint venture, the parties will launch ready-to-drink coffee beverages under the brand "Boncafe Icafe" which is co-owned by F&N and Boncafe.

The transaction is not expected to have any material effect on earnings or net tangible assets per share of the F&N Group in the current financial year.

No director or substantial shareholder of F&N has any direct or indirect interest in the transaction.

Submitted by I A MacLean, Director/Company Secretary on 4/10/2001 to the SGX