Securitisation of Cote d'Azur

The Directors of Fraser and Neave, Limited (the "Company") wish to announce the full redemption of the US$162,250,000 Floating Rate Secured Bonds due 2006 (the "Bonds") issued by Riviera Investment Ltd ("Riviera") and listed on the Luxembourg Stock Exchange.

Marine Parade View Pte Ltd ("MPV"), a wholly-owned subsidiary of the Company held through Centrepoint Properties Ltd ("CPL"), is the developer of the Cote d'Azur condominium, which is a 612-unit 99-year leasehold condominium project located along Marine Parade Road.

Riviera, a Singapore-incorporated special purpose company, was set up to issue the Bonds, the proceeds of part of which were on-lent to MPV to refinance the acquisition of the property on which the Cote d'Azur project is situated and to finance the construction costs of the Cote d'Azur project.

The Cote d'Azur project was sold on a deferred payment scheme where after the initial payment of 20% of the purchase price, 65% of the purchase price is payable by the purchasers of the units upon receiving notice that the Temporary Occupation Permit ("TOP") has been obtained. The TOP was obtained on 27 December 2004. The sale proceeds received following the TOP are being used to repay the loan owing to Riviera and to this end, MPV has given notice of prepayment to repay in full the S$285,316,625 loan owing by MPV to Riviera.

MPV has repaid the loan on 22 March 2005, and Riviera has redeemed the Bonds on 29 March 2005.

CPL is to acquire, at nominal cost, the entire issued and paid up share capital in Riviera. Such acquisition is pursuant to the exercise of the rights of CPL under a Put and Call Option Deed dated 5 September 2003 made between HSBC Institutional Trust Services (Singapore) Ltd (then known as Bermuda Trust (Singapore) Limited) and CPL under which each party thereto granted to the other the right to require that the other buy from it or sell to it (as the case may be) the shares in Riviera at nominal cost.

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

None of the Directors or controlling shareholders of the Company has any interest, direct or indirect, in this transaction.

Submitted by Mr Anthony Cheong Fook Seng, Director & Group Company Secretary on 30 March 2005.