Capital Reduction and Cash Distribution to Shareholders

The Board of Directors of Fraser and Neave, Limited is pleased to announce that a copy of the Order of Court confirming the F&N Pro Rata Capital Reduction and the F&N Selective Capital Reduction was lodged with the Registrar of Companies and Businesses of Singapore today. Accordingly, the F&N Pro Rata Capital Reduction and the F&N Selective Capital Reduction has become effective today. Payment to Shareholders pursuant to the F&N Pro Rata Capital Distribution and the F&N Selective Capital Reduction will be made within 10 market days of the date hereof.

Unless otherwise defined, terms used in this Announcement shall have the same meanings as defined in the circular dated 4 July 2003 despatched to Shareholders.

By Order of the Board
Anthony Cheong
Group Company Secretary

5 September 2003

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