F&N Commences Active Share Buy Back Programme

Singapore 16 August 2001 - Fraser and Neave Limited (the "Company") announces that it will commence an active capital management programme by re-purchasing up to 14,913,165 of its ordinary shares. The re-purchase will take the form of an on-market buy back programme, under a mandate given by shareholders at the Annual General Meeting ("AGM") held on 22 February 2001 which allows the Company to re-purchase up to 5% of its then issued ordinary shares during the period up to its next AGM (to be held probably in January or February 2002). The shareholders will be asked at that next AGM to approve a fresh mandate for the subsequent 12 months.

The directors believe this programme to be in the best interest of shareholders since the Companyaas shares continue to be traded substantially below net tangible asset value. The Company will fund the re-purchase by selling certain low-yielding investments. The reduced level of capital to be serviced thereafter is expected to result in improvement in earnings and net assets per share.