To: Business Editor

For immediate release

DAIRY FARM WELCOMES ACCC'S POSITIVE RESPONSE TO THE MANAGED SELL-DOWN OF ITS AUSTRALIAN SUPERMARKET INTERESTS

22nd May 2001 - Dairy Farm International Holdings Limited announced today that Franklins Holdings Limited, its wholly-owned subsidiary, has reached a resolution with the Australian Competition and Consumer Commission (ACCC) on a viable framework for the managed sell-down of the Franklins' business.

The managed sell-down envisages the sale of some 160 stores through the Joint Independent Divestment Alliance with Metcash (including up to 60 stores in New South Wales to a large overseas operator), 67 stores to Woolworths and 35 stores to Foodland. A small number of stores may be closed.

Ronald J Floto, Group Chief Executive of Dairy Farm said, "The Group welcomes the ACCC's positive response to the managed sell-down programme which allows Dairy Farm to make an orderly exit from the Australian market. Negotiations with Woolworths are at an advanced stage, and we are making substantial progress in our discussions with other interested parties. Further details will be announced as binding agreements are concluded."

Dairy Farm is a leading food and drugstore retailer in the Asia-Pacific Region. At 31st December 2000, the Group and its associates operated over 2,200 outlets, principally supermarkets, hypermarkets, convenience stores and drugstores, employed some 79,000 people in nine territories and had sales of US$6.6 billion in 2000.

For further information, please contact:
Dairy Farm Management Services Limited Ronald J Floto	(852) 2299 1881
Golin/Harris Forrest Bob Fienberg	(852) 2501 7908 Email: bob.fienberg@golinharris.com.hk

This and other Group announcements can be accessed through the Internet at "www.dairyfarmgroup.com".

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