To: Business Editors

For immediate release

DAIRY FARM IN JV TO INTRODUCE FIRST CASH & CARRY STORE IN INDIA

14th June 2000 - Dairy Farm International Holdings Limited today announced that the Group has signed a JV agreement with Spencer and Company to form a joint venture company in India which will operate Cash & Carry stores. The first store is scheduled to be opened in Hyderabad in early 2001, which will be first such store in India.

"We are delighted to increase our presence in India with this new Cash & Carry store format," said Ronald J. Floto, Group Chief Executive of Dairy Farm. "As we emerge from this difficult period in Asia, the timing is right for us to expand in our key markets to continue building sales and profitability for the Group. This latest joint venture with Spencer signifies our confidence in the retail industry in the Region and in India."

This is Dairy Farm's third joint venture agreement with Spencer, a member of the leading conglomerate, the RPG Group in India. The initial capital investment for the joint venture is US$4 million.

"We are extremely pleased to be in another joint venture with Dairy Farm International. Our partnerships over the last four years in Foodworld and Health & Glow have been truly successful because of the numerous synergies between our companies and our common vision for the Indian market," said Mr Sanjiv Goenka, Chairman of Spencer & Co Ltd. "We believe the Cash & Carry project will help us to strengthen our leadership role in food and FMCG distribution in India."

This arrangement expands Dairy Farm's operations in India that comprise two joint ventures with Spencer that operate 41 Foodworld supermarkets spread across southern India and 12 Health & Glow drugstores in Chennai and Bangalore.

"Our partnership with Spencer is redefining the food supply chain in India by introducing improved distribution standards and efficiencies," said Michael Kok, Regional Director for South Asia, Dairy Farm. "India Cash & Carry will introduce value propositions to enhance the competitiveness of retailers in India."

The 50,000 sq. ft Cash & Carry outlet in Hyderabad, housed on 2.5 acres land area, will target the smaller local retailer as its customers. It will offer convenience and variety with an extensive range of competitively priced products under one roof.

Dairy Farm is a leading food and drugstore retailer in the Asia-Pacific Region. At the end of 1999, the Group and its associates operated 2,063 outlets, principally supermarkets, convenience stores and drugstores, employed some 80,000 people in nine territories and had 1999 sales of US$6.8 billion.

Spencer & Co Ltd is a member of India's leading business house, the RPG Group with 1999 turnover of US$1.5 billion. Incorporated in 1897, with over 100 years of retail experience, Spencer is one of the most established retail operator in India. Today, it successfully operates Foodworld, a supermarket chain, and Health & Glow, a chain of health and beauty stores in joint ventures with Dairy Farm International. It also owns Music World, a chain of entertainment and record stores across 8 cities. Its retail network is the largest in India.

For further information, please contact:

Dairy Farm Management Services Limited Michael Kok	(65) 8329 602
Spencer and Company Shiv Murti	(91) 44 8520690
Forrest International Ltd Sue Gourlay	(852) 2501 7936

This and other Group announcements can be accessed through the Internet at "www.irasia.com/listco/sg/dfi".

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