Asia Pacific Breweries to Increase Equity in Hatay Brewery Limited in North Vietnam

The Board of Directors is pleased to announce that the Company has obtained regulatory approvals in Vietnam, to transfer to the Company the remaining 8.5 percent interest in the registered capital of Hatay Brewery Limited ("HBL") not already held by it. The transferor is Vietnam Brewery Limited ("VBL"), a joint venture company in which the Company has a 60% interest. Following this transaction, HBL will become a wholly owned subsidiary of the Company.

Subject to satisfaction of the conditions precedent set out in the Agreement between the Company and VBL, the consideration of VND 43.574 billion (approximately S$ 5 million) will be payable in cash within 30 days of receipt of the Amended Investment Licence, and represents the book value of the investment carried in the books of VBL. In addition, the Company will take on the obligation to contribute a further USD 1.7 million (approximately S$ 3 million) to the registered capital of HBL. HBL is expected to begin commercial operations in the fourth quarter of 2003.

The transaction will not affect net tangible assets or affect materially the earnings per share of the Company or the Group in the current financial year.

No director or major shareholder has an interest, directly or indirectly, in the transaction.

Anthony Cheong Fook Seng
Company Secretary

Submitted by Anthony Cheong Fook Seng, Company Secretary on 2/5/2003 to the SGX