Increase in Shareholding in China Dairy Group Ltd

Pursuant to Rule 704(15)(d) of the Listing Manual, the Company announces that its wholly-owned subsidiary, F&N Dairy Investments Pte Ltd (" F&NDI ") has increased its shareholding in its associated company China Dairy Group Ltd (" CDG ") from 22.02% to 29.5%, through the exercise of 41.2 million of its warrants issued by CDG (" Increase ").

The shares of CDG are listed and traded on the Singapore Exchange Securities Trading Ltd and the warrants, China Dairy Group Ltd W080104, were issued by CDG on 5 January 2005.

The consideration for the Increase is S$14,008,000 based on the exercise price of the warrants at S$0.34 each.

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

None of the Directors or substantial shareholders of the Company has any interest, directly or indirectly, in the Increase.

Submitted by Anthony Cheong, Group Company Secretary on 18 August 2005.