Acquisition of 27 and 33 St Thomas Walk

The Board of Directors of Fraser and Neave, Limited (the "Company") announces that CPL Tower Pte Ltd ("CPL Tower"), a subsidiary of its wholly-owned subsidiary, Centrepoint Properties Ltd, has entered into Sale and Purchase Agreements with the respective owners of 27 and 33 St Thomas Walk (collectively, the "Properties") for the purchase of the Properties at an aggregate consideration S$210 million.

The consideration was arrived at on a "willing buyer-willing seller" basis and will be funded by internal sources.

The Properties are adjoining and have a combined land area of approximately 139,842 sq ft. Based on the 2003 Master Plan, the maximum allowable gross floor area of the combined site is approximately 391,559 sq ft. CPL Tower intends to develop luxury residential apartments on the Properties for sale within the next two years.

The transaction is not expected to have any material effect on the net tangible assets per share or earnings per share of the Company for the current financial year.

None of the directors or substantial shareholders of the Company has any interest, directly or indirectly, in the transaction.

Submitted by Anthony Cheong Fook Seng, Company Secretary on 2 August 2005 to the SGX.