To: Business Editors

For immediate release

Hong Kong, 16 February 2000 - Dairy Farm has signed a strategic alliance agreement with Daymon Associates to develop and implement a corporate brand programme across the Group.

Under the agreement, Daymon Associates will be responsible for developing package design, product specifications, supplier negotiation and quality control for the Group's two private labels, First Choice and No Frills. The company will also work closely with the Group to explore and develop new marketing initiatives.

Daymon Associates was founded in 1969 in the U.S. to help retailers develop and implement their total corporate brand programmes. The company works with many leading retailers around the world.

Philippe Gerard, Group Director, Business Development and Marketing of Dairy Farm said, "The development of a corporate brand is an integral part of our strategy of being the leading food and drugstore retailer in the Asia-Pacific Region. By expanding our local brands to international brands, we are building up group synergies from sourcing, cost negotiation, product development through to marketing, label design and quality assurance.

"Daymon Associates has worked with some of our operating companies in the past to develop corporate brand programmes. Their expertise and experience coupled with our regional network will help create international brands with a difference that consumers prefer and trust."

Bruce Patton, Executive Vice President and Group Managing Director - International of Daymon Associates said, "Daymon Associates is excited to be working in the Asia-Pacific Region with Dairy Farm. The introduction of an international brand will provide the Group with the ability to satisfy customers' demand for products of excellent quality at an affordable price. We will also work closely with the Group to identify further development opportunities in this area."

Dairy Farm will have a full-scale launch programme for its First Choice label in June 2000 in all countries where it operates. Cold Storage in Singapore and Wellcome in Hong Kong have already introduced First Choice products in their range in September 1999. The next generation of No Frills will also be developed to maintain its price positioning and appeal to customers.

Issued by Forrest International Limited on behalf of Dairy Farm Management Services Ltd. For further information, please contact:

Dairy Farm Management Services Ltd Philippe Gerard	Tel : (852) 2299 1861 Email : pgerard@dairy-farm.com.hk
Forrest International Limited Bob Fienberg	Tel : (852) 2501 7908 Email : fienberg@forrestintl.com.hk
Emily Chen	Tel : (852) 2501 7927 Email : ecchen@forrestintl.com.hk

Full text of this and other Group announcements can be accessed through the Internet at "http://www.irasia.com/listco/sg/dfi".

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