Acquisition of Pansing Distribution Sdn Bhd by Times Publishing Limited

Pursuant to Clause 704(15)(c) of the Listing Manual, Fraser and Neave, Limited (the "Company") wishes to announce that its wholly-owned subsidiary Times Publishing Ltd ("TPL") has acquired all of the shareholding interest in Pansing Distribution Sdn Bhd ("Pansing") and TPL's subsidiary, Times Information Systems Sdn Bhd, has also acquired certain assets of Pansing Sales Sdn Bhd (a company incorporated in Malaysia) ("PSSB") (collectively, the "Acquisition").

Pansing is a company incorporated in Singapore and its main business is in distribution of books.

The aggregate consideration for the Acquisition was S$7,331,000, arrived at through negotiation on a willing buyer willing seller basis, taking into account the net asset value of Pansing and value of the assets to be acquired from PSSB. The consideration has been paid in cash on completion and financed using internal resources.

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 01/10/2004 to the SGX