Increase in Shareholding in Fung Choi Printing and Packaging Group Limited

Fraser and Neave, Limited (the " Company ") announced on 28 March 2006 that F&N Investments Pte Ltd (" F&NI "), a wholly-owned subsidiary of the Company, was granted an option (" Option ") whereby F&NI would be entitled to acquire shares (" Shares ") in Fung Choi Printing and Packaging Group Limited (" FC ") which when aggregated with the Shares then held by F&NI, represent not more than 25% of the total voting shares in FC.

The Company hereby announces that F&NI has exercised the Option to acquire 66,093,000 Shares at the exercise price of $0.441 per Share (the " Acquisition "). Following the exercise of the Option, F&NI holds 25% of the total voting shares in FC.

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

Except for Dr Han Cheng Fong who is a director of FC, none of the other directors or substantial shareholders of the Company has any interest, directly or indirectly, in the Acquisition.

Submitted by Anthony Cheong Fook Seng, Company Secretary on 17 May 2006 to the SGX.