APBS Rejects Claims Made by HVB

Asia Pacific Breweries Ltd notes today's press release by HVB relating to its alleged claim for US$ 30 million against its subsidiary company, Asia Pacific Breweries (Singapore) Pte Ltd ("APBS").

Bayerische Hypo-und Vereinsbank AG ("HVB") has a curious way of conducting legal proceedings. Instead of serving the Court papers on the other party, HVB has decided to announce its proceedings even before notifying APBS that it has commenced action.

Instead of allowing the Court to decide the case on its merits, HVB appears anxious to make its case through the media. It appears that the media statement is nothing more than an attempt by HVB to deflect attention from lapses in its own internal controls. It is HVB that has failed to detect and prevent acts of fraud by Chia. This will become apparent at the trial.

APBS will respond in Court at the appropriate time to the proceedings. APBS believes that it has a good defence and has instructed its lawyers, Davinder Singh SC and Hri Kumar of Drew & Napier LLC, to vigorously defend the claim.

HVB's media release mentions that their request to the Court for documents from APBS was rejected by the High Court. When HVB made that request, it said that it needed the documents to enable HVB to assess its potential claims against APBS. It is interesting that HVB has now sued without the benefit of those documents which they said they needed to assess their claims against APBS.

HVB claims that APBS knew of Chia's history of gambling when they employed him. This is untrue. Various other allegations have been made in the media release. They are rejected and will be dealt with at the appropriate time in Court.

APBS would not ordinarily have issued a media release of this nature but HVB's media statement has made it necessary for APBS to respond in this manner. HVB should let the Courts decide the case.

Anthony Cheong Fook Seng
Company Secretary
21 September 2004

For enquiries, please contact:
Sarah Koh
Group Corporate Communications
Asia Pacific Breweries Ltd
Tel : 62775059

Submitted by Anthony Cheong Fook Seng, Company Secretary on 21/09/2004 to the SGX