To: Business Editor

For immediate release

DAIRY FARM AGREES SALE OF 53 FRANKLINS STORES TO PICK'N PAY

18th June 2001 - Dairy Farm International Holdings Limited announced today that its wholly-owned Australian subsidiary, Franklins Limited, has signed a binding agreement to sell 53 stores to Pick'n Pay Stores Limited of South Africa, subject to certain conditions including foreign investment protocols.

Under this agreement, Pick'n Pay will acquire 53 stores and the Franklins' brand and trading names, together with the No Frills product brand in Australia, for a total cash consideration of US$52 million (A$101 million). As at 31st December 2000 the net carrying value of these stores was US$19 million (A$35 million) and the stores broke even at operating profit before tax level for the year ended 2000. Pick'n Pay will also acquire associated stock and certain personnel-related liabilities.

The sale is expected to be completed within six months. The proceeds will be used to reduce Franklins' debt. The surplus over carrying value related to this transaction is expected to be offset by closure and related costs of the managed sell-down process for the remainder of the Franklins' store network.

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
Simon Mawson	(852) 2299 1891
	Email: smawson@dairy-farm.com.hk
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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