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 29.04% to 29.5%, through the exercise of three (3) million warrants issued by CDG (" Increase ").

Prior to 3 January 2006, the Company's shareholding in CDG was 29.5%. The Company's shareholding was on 3 January 2006 diluted to 29.04% as a result of the exercise of 6.8 million warrants by Winner International Investments Ltd, the majority shareholder of CDG.

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$1,020,000 based on the exercise price of the warrants at S$0.34 each, which will be paid in cash and funded from internal resources.

The Increase is not expected to have a 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 Increase.

Anthony Cheong Fook Seng
Group Company Secretary

4 January 2006