Proposed Issue of S$200,000,000 7 Years Fixed Rate Notes

The Directors of Fraser And Neave Limited (the "Company") are pleased to announce that the Company is proposing to issue a second series, comprising S$200,000,000 (the "Series 2 Notes") in principal amount of the Notes pursuant to its S$1,000,000,000 Medium Term Note Programme (the "MTN Programme"), established on the 26 August 2002.

The joint lead managers for the Series 2 Notes are DBS Bank Ltd and The Hongkong and Shanghai Banking Corporation Limited. The Series 2 Notes will be issued in bearer form and in denominations of S$250,000. Unless previously redeemed, purchased and/or cancelled, the Series 2 Notes shall mature on the date falling seven years after their date of issue and shall bear interest at the fixed rate of 3.41 percent per annum payable semi-annually in arrears.

The net proceeds from the issue of the Series 2 Notes (after deducting issue expenses) will be used for the purposes of funding working capital requirements and refinancing indebtedness of the Company, its subsidiary and joint venture and associated companies.

Application will be made to the Singapore Exchange Securities Trading Limited ("SGX-ST") for the listing and quotation of the Series 2 Notes to be issued under the MTN Programme and which are at the time of issue agreed to be listed on the SGX-ST.

By Order of The Board
Anthony Cheong Fook Seng
Group Company Secretary

29 July 2003

Submitted by Anthony Cheong Fook Seng, Group Company Secretary on 29/7/2003 to the SGX