ACQUISITION OF SUBSIDIARY

Pursuant to Rule 704(15)(c) of the Listing Manual of the Singapore Exchange Securities Trading Limited, Fraser and Neave, Limited (" the Company") announces that Singapore Logistics Investments Pte Ltd ("SLI"), an indirect subsidiary of Frasers Centrepoint Limited ("FCL"), which is in turn a subsidiary of the Company, has completed the acquisition from Superway Overseas Limited ("the Vendor") of the entire issued share capital (the "Acquisition") of Superway Logistics Investments (Hong Kong) Limited ("SLIHK"), a company incorporated in the Hong Kong Special Administrative Region of the People's Republic of China ("PRC").

SLIHK is the holding company of a PRC company which holds land for the development thereon of an industrial complex to be operated as a logistics hub in Chengdu, PRC.

The consideration for the Acquisition is HK$95 million (equivalent to approximately S$ 17.6 million), being the aggregate of the paid-up capital of SLIHK and a shareholder's loan owing by SLIHK to the Vendor which is assigned to SLI upon completion, and was arrived at on a "willing-buyer-willing-seller" basis. The consideration was fully paid in cash on completion and is being funded from internal resources.

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

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

Anthony Cheong Fook Seng
Group Company Secretary

16 November 2007