Acquisition of additional 34.3% shares in Everbest Printing Holdings Ltd

On 28 June 2002, Fraser and Neave Limited (the "Company") announced the acquisition (the "Acquisition"), through Times Printers (Hong Kong) Limited ("TP(HK)") a subsidiary of its wholly-owned subsidiary Times Publishing Limited, of 51% of the issued ordinary share capital of Everbest Printing Holdings Limited ("EPHL"), a company incorporated in Hong Kong (Special Administrative Region).

Pursuant to Rule 704(15)(d) of the Listing Manual, the Company announces that TP(HK) has acquired an additional 34.3% of the ordinary shares and 100% of the deferred shares in EPHL (the "Shares") pursuant to the terms of the sale and purchase agreement relating to the Acquisition at a consideration of approximately HK$70 million. The consideration is based on 1.15 times of the net asset value of the Shares and is subject to adjustment upon completion of audit of 31 March 2005 accounts of EPHL. Following the acquisition, TP(HK) now holds 85.3% of the ordinary shares in EPHL.

While the transaction will be accretive, it 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.