Sichuan Malaya Glass Co Limited

Pursuant to clause 904(1)(c) of the Listing Manual, we announce that Malaya Glass Products Sdn Bhd ("MGP"), a wholly owned subsidiary of Fraser & Neave Holdings Bhd ("F&NHB"), which in turn is a subsidiary of the Company, has to-day entered into a joint venture agreement with Tuopai Yeast Liquor Co Ltd, Sichuan, ("Tuopai") to establish a joint venture company, "Sichuan Malaya Glass Co Ltd" in Sichuan Province, The Peopleaas Republic of China ("PRC").

Tuopai and its related companies are involved in activities which include liquor production, construction and power generation. The group is a major user of glass containers.

SMGCL will produce and sell glass products primarily for the PRC market. Upon completion of the production facilities of SMGCL, it will have an estimated annual production capacity of 80,000 tonnes of various types of glass containers.

The total investment in SMGCL will be US$28 million (RM106.4 million based on the exchange rate of US$1:RM3.8) of which US$16.8 million (RM63.8 million) will be its registered capital. MGP will contribute US$10.08 million (RM38.3 million) which represents 60% of such registered capital. The contribution by MGP will be financed through borrowings for which the Controller of Foreign Exchange, Malaysia has given approval in principle. Tuopai will contribute US$6.72 million (RM25.5 million) which represents 40% of such registered capital. The registered capital will be called up progressively according to plant construction commitments.

The balance of the total investment of US$11.2 million (RM42.6 million) will be funded by borrowings.

Construction work on the factory building is expected to commence in November 2001 and be completed by mid-September 2002, SMGCL is expected to commence operations on 1 October 2002.

No directors or major shareholders have an interest in this transaction.

The transaction will not affect net tangible assets or earnings per share in the current year.

I A MacLean

Director and Company Secretary

Submitted by I A MacLean, Director and Company Secretary on 8/8/2001 to the SGX