Acquisition of 33% Shareholding Interest in Fung Choi Printing and Packaging Group Limited ("Fung Choi")

Pursuant to rule 704(15)(c) of the Listing Manual of the Singapore Exchange Securities Trading Ltd, the Company announces that its wholly-owned subsidiary, F&N Investments Pte Ltd ("F&NI") has acquired 262.68 million existing shares of HK$0.10 each in the issued capital of Fung Choi (the "Acquisition"). Following the Acquisition, F&NI will hold a 33% shareholding interest in Fung Choi.

The consideration for the Acquisition is HK$169 million, payable in cash and was arrived at after negotiations on a willing buyer and willing seller basis ("Consideration"). The Consideration may be adjusted based on the audited accounts of Fung Choi for its financial year ending 30 June 2004, after the issue of the said accounts. Subject to certain conditions to be fulfilled, there are options, inter alia, for F&NI to increase its shareholding interest up to 51% in Fung Choi.

Fung Choi is a company incorporated under the Bermuda Companies Act 1981 and is the holding company of the Fung Choi group of companies with printing operations in Guangzhou, Qingdao and Beijing.

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

None of the Directors or substantial shareholders of the Company has any interest, directly or indirectly, in the Acquisition.

A copy of the Company's press release on the Acquisition is attached for your information.

PRESS RELEASE

F&N INCREASES ITS PRESENCE IN THE PRINTING INDUSTRY IN CHINA Acquires 33% interest in Fung Choi Printing and Packaging Group Limited

Singapore - 18 June 2004 - Fraser and Neave, Limited ("F&N") announced today that its wholly-owned subsidiary, F&N Investments Pte Ltd ("F&NI"), has acquired a 33% interest in Fung Choi Printing and Packaging Group Limited ("Fung Choi"). Fung Choi is a company incorporated under the Bermuda Companies Act 1981 and is the holding company of the Fung Choi group of companies with printing operations in Guangzhou, Qingdao and Beijing.

The consideration for the Acquisition is HK$169 million, which will be adjusted if the audited earnings of Fung Choi for its financial year ending 30 June 2004 do not reach a certain target. Subject to certain conditions to be fulfilled, F&NI has an option to increase its shareholding interest up to 51% in Fung Choi.

Fung Choi has subsidiaries and associates in Guangzhou, Qingdao and Beijing which print books, magazines, catalogues, posters, packaging boxes and other printed materials. The business was started in 1993 by Mr Xiang Mingxi and his wife Madam Lai Yuen Ling, who are both from Guangzhou. The couple continues to hold 62% of the company after F&N's entry. Fung Choi had sales revenue of HK$163m and after-tax profit of HK$38m for its financial year ended 30 June 2003. For the 6 months to 31 Dec 2003, its revenue and after-tax profit were about HK$129m and HK$29m respectively.

Fung Choi's main operation is in Guangzhou which was recently relocated into a 33,000 square-meter new plant in the Guangzhou Science Town. The new premises will have sufficient space for the company's expansion over the next few years.

F&N currently has 4 printing plants in China through its wholly-owned subsidiary Times Publishing Limited. They are located in Shanghai, Panyu (Guangdong Province) and Shenyang (2 plants, Liaoning Province). The acquisition of Fung Choi is in line with the F&N Group's vision of having its printing business presence in all the major regions of coastal China. The Group's printing revenue totaled S$251m for its financial year ended 30 Sep 2003, with profit before tax of S$19m.

About Fraser and Neave, Limited
Fraser and Neave, Limited (F&N) is a leading Singapore-based Company with core expertise and dominant standing in the Food and Beverage, Property, and Printing & Publishing industries. Leveraging on its strength in marketing and distribution; brand management; product development and innovations; as well as financial management and strategic development, it provides key resources and sets strategic directions for its subsidiaries companies across all three industries. Today, the F&N Group owns an impressive array of renowned brands that enjoy market leadership across a mix of beer, dairy products, soft drinks and beverages; residential properties, retail malls and service residences; as well as publishing and printing services. Listed on the Singapore Exchange, F&N's shareholders' funds are in excess of S$2.8 billion, and its total assets employed exceed S$7 billion. F&N is present in more than 20 countries spanning Asia Pacific, Europe and USA, and employs more than 13,000 employees worldwide.

For clarification and further enquiries, please contact:
Mr Sonny Tan
General Manager (New Ventures)
DID: 6318-9271
Email: tansonny@fngroup.com.sg

Submitted by Anthony Cheong Fook Seng, Group Company Secretary on 18/6/2004 to the SGX