Dairy Farm Announces Tender Offer For PT Hero Shares

9th September 2005 - Dairy Farm International Holdings Limited today announced that its wholly-owned subsidiary, Nalacca B.V., intends to make a tender offer for all the shares of PT Hero Supermarket Tbk (€˜PT Hero'), other than those held by controlling shareholder PT Hero Pusaka Sejati, that are not yet owned by the Dairy Farm Group. Dairy Farm currently has a direct shareholding in PT Hero of 40.54%, and also holds bonds exchangeable for a further 24.55% shareholding.

PT Hero is Indonesia's leading supermarket chain through its 93 Hero stores, and at 30th June 2005 also operated ten Giant hypermarkets, 88 Guardian health and beauty stores, and 50 Starmart convenience stores.

Subject to the terms set out in a tender offer statement to be released to shareholders later this month, Dairy Farm will offer a cash consideration of IDR6,351 per share, valuing PT Hero at approximately US$200 million. The offer price represents a higher price than the highest market price for PT Hero shares during the 90 days prior to the announcement of the tender offer.

Commenting on the tender offer, Dairy Farm's Group Chief Executive Ronald J Floto said, "PT Hero has continued to make strong improvement in its underlying profitability, and is demonstrating attractive growth potential in the medium term. Dairy Farm intends to participate in this growth through an increase in its shareholding in PT Hero."

The offer will remain open for a period of 30 days, which is expected to commence on or about 28th September 2005. The commencement date of the offer period, together with full details on procedures for accepting the offer, will be made available when the draft tender offer statement is declared effective by the capital market regulatory agency in Indonesia.

If the offer is accepted in full, the consideration will be IDR196 billion (approximately US$19 million). Nalacca B.V. will fund the consideration from existing cash resources.

Dairy Farm is a leading pan-Asian retailer. At 30th June 2005, the Group and its associates operated more than 3,000 outlets - including supermarkets, hypermarkets, health and beauty stores, convenience stores, home furnishings stores and restaurants; employed some 60,000 people in the region; and had 2004 total sales of US$5.1 billion. Dairy Farm is a member of the Jardine Matheson Group.

For further information, please contact:

Dairy Farm Management Services Limited

Howard Mowlem (852) 2299 1896

GolinHarris

John Morgan (852) 2501 7939

This and other Dairy Farm announcements can be accessed through the Internet at €˜www.dairyfarmgroup.com'.