Dairy Farm Expands Malaysian Operations With Acquistion Of Giant

13th August 1999 - Dairy Farm International Holdings Limited announced today that it is expanding its supermarket operations in Malaysia with the purchase of 90% of the share capital of Giant TMC.BHd.

Giant operates five supermarkets and two hypermarkets and is projecting sales in 1999 in excess of US$200 million. Giant was founded in 1944 and today it is among the top food retailers in Malaysia. Under the terms of the agreement the existing shareholders will continue their involvement in the business. The net asset value of Giant at December 1998 was MYR48 million (US$13 million).

"This agreement will allow Dairy Farm to strengthen its position as the leading international player in this important market," said Michael Kok, Dairy Farm's Regional Director for South Asia.

"Dairy Farm has been looking for opportunities to expand its presence in Malaysia for some time," said Ron Floto, Group Chief Executive. "The Giant acquisition will not only accomplish this; but, will also provide the general merchandise expertise we need to operate hypermarkets in other Asian markets."

The agreement is subject to the necessary regulatory approvals.

Dairy Farm's investments in Malaysia also include a 75% interest in the eight store Wellsave supermarket chain, and a 65% interest in Guardian pharmacy. Guardian, with 59 stores, is the market leader in health, wellness and beauty products.

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Note to Editors

Dairy Farm is a leading food and drugstore retailer in the Asia-Pacific Region. At the end of 1998, the Group and its associates operated 1,871 outlets, principally supermarkets, convenience stores and drugstores, employed some 74,000 people in nine countries and had 1998 sales of US$6.6 billion.

The Group operates under well-known local brands including:

 Supermarkets - Wellcome in Hong Kong and Taiwan, Cold Storage in Singapore, Franklins in Australia, Woolworths in New Zealand, and Hero in Indonesia;

 Drugstores - Mannings in Hong Kong, Guardian in Singapore, Malaysia and Indonesia, and Health and Glow in India; and

 Convenience stores - 7-Eleven in Hong Kong, Mainland China and Singapore.

The Group has a number of joint ventures including Maxim's, Hong Kong's leading restaurant chain, and DFI Géant, a hypermarket operator in Taiwan.

For further information, please contact:

Dairy Farm Management Services Limited

Michael Kok (852) 2299 1881 / (65) 832 9602

Philip Hawkins (852) 2299 1997

Forrest International Limited

Bob Fienberg (852) 2501 7908