Disclosure of Disposal of Quoted Securities in compliance with Rules 1010 and 704(16)(b)

Pursuant to Rule 1010, the Directors of Fraser and Neave, Limited (the "Company") announce that its wholly owned subsidiary, Fraser & Neave Investments (Hong Kong) Limited ("F&NI"), has disposed of all its shares in Coca-Cola Amatil Limited ("CCA"), comprising 32,986,760 ordinary shares (the "Sale Shares") in the issued share capital of CCA, for an aggregate cash consideration of $250 million (the "Transaction").

The consideration was arrived at on a willing buyer willing seller basis, pursuant to the exercise of call options under agreements entered into by F&NI. The net book value of the Sale Shares was $222.6 million. An exceptional gain of $27.4 million will be realized from the Transaction.

The Transaction constituted disposal of a non-core asset by the Group. The proceeds from the Transaction, pending redeployment, will be used to reduce bank borrowings of the Group.

The effect of the Transaction on the net tangible assets ("NTA") per share for the financial year ended 30 September 2003, assuming that the Transaction had been effected at the end of that financial year would be to increase NTA per share by 12 cents or 1 percent, (from $12.09 to $12.21). The effect of the Transaction on the earnings per share ("EPS") for financial year ended 30 September 2003, assuming that the Transaction had been effected at the beginning of that financial year, would be to increase EPS (after exceptional items) by 6.3 cents or 5 percent (from $1.259 to $1.322).

None of the directors of the Company has any interest, directly or indirectly, in the Transaction.

Pursuant to Rule 704(16)(b) of the Listing Manual, the disposal of the Sale Shares will result in the following changes:

(i) the Group's aggregate cost of quoted investments being reduced from $439.3 million (15.8 percent of NTA) before the Transaction, to $181.9 million (6.5 percent of NTA) after the Transaction;

(ii) the market value of the Group's quoted investments being reduced from $459.7 million before the Transaction, to $181.0 million after the Transaction; and

(iii) the amount of provision for diminution in value of quoted investments is $3.5 million.

Submitted by Anthony Cheong Fook Seng, Group Company Secretary on 7/4/2004 to the SGX