Securitisation of Cote d'Azur - Completion

Further to the announcements on 21 and 22 August 2003, the Directors of Fraser and Neave Limited (the "Company") are pleased to announce that its wholly-owned subsidiary, Centrepoint Properties Ltd ("Centrepoint"), has completed the transaction to securitise the sales receivables from the Cote d'Azur condominium project ("Securitisation"). The amount raised is approximately S$285 million.

Cote d'Azur is a 612-unit 99-year leasehold condominium project located along Marine Parade Road undertaken by Marine Parade View Pte Ltd ("MPV"), a single-purpose company wholly-owned by Centrepoint. The project is currently under construction and as at the time of this announcement, approximately 97% of its units have been sold.

Riviera Investment Ltd ("Riviera"), a Singapore-incorporated special purpose company, was set up to issue US$ bonds, the proceeds of which are on-lent to MPV. The bonds are rated "AAA" by Fitch, Inc, carry an interest rate being the equivalent of 3 months LIBOR and 0.35 per cent. and, subject to certain provisions for early redemption, will mature in December 2006. The loan from Riviera to MPV carries a fixed rate of interest of 1.879 per cent. until March 2005, the expected redemption date. There are swap mechanisms in place for the currency and interest rate swaps between Riviera and Standard Chartered Bank.

Cote d'Azur is a project where a deferred payment scheme was made available to buyers of the units. Securitisation enables the Company to bring forward cash flows from the deferred payment scheme.

The net proceeds from the Securitisation will be used to re-finance the acquisition of the property on which the Cote d'Azur project is situated and to finance the construction of the Cote d'Azur project. This is part of ongoing financial management efforts by the Company to improve profitability at more favourable interest rates.

The Fraser and Neave Group has no beneficial interest in the equity of Riviera for the duration of the transaction.

The transaction is not expected to have a material impact on the net tangible assets or earnings per share of the Company or the Group for the financial year ending 30 September 2003.

Standard Chartered Bank is the arranger of the Securitisation.

None of the Directors or controlling shareholders of the Company has any interest, direct or indirect, in this transaction.

Submitted by Anthony Cheong, Group Company Secretary on 5/9/2003 to the SGX