S$1,000,000,000 Medium Term Note Programme
Issue of Series 3 - S$150,000,000 3.62% Notes due 2015

Fraser and Neave Limited (the " Company ") is pleased to announce that it has entered into a Subscription Agreement with Standard Chartered Bank, as Lead Manager, for the subscription of an aggregate principal amount of S$150,000,000 of 3.62% 10-year Notes to be issued by the Company on 13 October 2005 (the " Notes ").

The Notes are to be issued under the S$1,000,000,000 Medium Term Note Programme (the " Programme ") established by the Company in August 2002 and the Notes will constitute Series 3 under the Programme.

The proceeds from the issue of the Notes will be utilised to repay existing short-term borrowings of the Company as well as for its general working capital requirements.

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.

As far as the directors of the Company are aware, none of the directors or substantial shareholders of the Company has any direct or indirect interest in the transaction.

Submitted by Anthony Cheong, Group Company Secretary on 7 October 2005.