To: Business Editor

For immediate release

DAIRY FARM AGREES SALE OF 36 FRANKLINS STORES TO FOODLAND ASSOCIATED LIMITED

25th June 2001 -- Dairy Farm International Holdings Limited announced today that its wholly-owned Australian subsidiary, Franklins Limited, has signed a contract to sell 36 stores and has entered into heads of agreement to sell associated distribution facilities to Foodland Associated Limited, for a total cash consideration of US$80 million (A$155 million). These agreements are subject to satisfaction of normal preconditions.

As at 31st December 2000 the combined net carrying value of these assets was US$45 million (A$82 million) and the net loss before tax for the year ended 31st December 2000 attributable to these assets was some US$8 million (A$14 million). Foodland will also acquire associated stock and certain personnel-related and other liabilities.

The sales are 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) 9612 3777
	Email: smawson@dairy-farm.com.hk
Golin/Harris Forrest
David Dodwell	(852) 9238 2389
	Email: david.dodwell@golinharris.com.hk

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

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