Establishment of a Joint Venture Company known as Beijing Universal Times Culture Development Co., Ltd.

Fraser and Neave, Limited announces that the Company's wholly-owned subsidiary, Times Publishing Limited has through Times Publishing (HK) Limited ("TPHK"), entered into a joint venture (the "Joint Venture") with China Universal Press & Publication Co., Ltd. ("CUPP") and HK Infomedia Capital Group Limited ("HKIM") to establish an equity joint venture company in The People's Republic of China known as Beijing Universal Times Culture Development Co., Ltd. (the "EJVC").

The EJVC will be treated as an associated company of TPHK and will have a registered capital of RMB10 million. Under the terms of the Joint Venture, TPHK will hold 40% of the registered capital of the EJVC while CUPP and HKIM will each hold 30% of the registered capital of the EJVC.

The EJVC will explore opportunities for the development and production of cultural and educational books and materials for sale in the PRC.

The transaction is not expected to have any 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 transaction.

Submitted by Anthony Cheong Fook Seng, Group Company Secretary on 12/05/04 to the SGX