10:06     FIRST PACIFIC<00142> - Announcement (10)                            

    to increase sales turnover and earn additional margin                     
    on the products sold by the Indofood Group, as well                       
    as to diversify the product portfolio of the Indofood                     
    Group.                                                                    
                                                                              
    4.      In respect of the Continuing Financing                            
    Arrangements between Indofood and PAB, as a 50%                           
    shareholder in PAB, Indofood has extended the                             
    relevant facility to finance PAB's financing                              
    requirements. This arrangement also enables Indofood                      
    to earn a higher rate of return on the funds advanced                     
    to PAB than it would earn on any deposit of the funds                     
    in a bank. In respect of the Continuing Financing                         
    Arrangements between Indofood and PI, this                                
    arrangement enables Indofood to earn a higher rate                        
    of return on the funds advanced to PI than it would                       
    earn on any deposit of the funds in a bank.                               
                                                                              
    The benefits which are expected to accrue to Indofood                     
    and the Company as a result of the transactions are                       
    the enhancement of facilities, assets and resources                       
    utilisation with profitable margins and increases in                      
    market share, revenue and operational profitability                       
    of Indofood's major businesses.                                           
                                                                              
    The directors (including the independent                                  
    non-executive directors) consider that each of the                        
    transactions referred to in this announcement have                        
    been entered into in the ordinary and usual course                        
    of business of the Company, Indofood and their                            
    respective subsidiaries (other than as set out above                      
    in respect of the Continuing Financing Arrangements),                     
    on normal commercial terms and on terms no less                           
    favourable to the Company, Indofood and their                             
    respective subsidiaries, that such terms are fair and                     
    reasonable and that they are in their best interest                       
    of the Company, Indofood and their respective                             
    shareholders.                                                             
                                                                              
    INFORMATION IN RESPECT OF THE COUNTERPARTIES                              
    Each of DUFIL and Pinehill, being the counterparties                      
    to the transactions relating to the Noodle Business                       
    of the Indofood Group, are engaged in the                                 
    manufacturing and marketing of instant noodles, in                        
    the case of DUFIL, in Nigeria and, in the case of                         
    Pinehill, in Saudi Arabia and the Middle East.                            
                                                                              
    PAB and Tarumatex, being the counterparties to the                        
    transactions relating to the Flour Business of                            
    Indofood Group, are engaged, in the case of PAB, in                       
    the production and marketing of biscuit products and,                     
    in the case of Tarumatex, in the manufacturing of                         
    fabrics and other textile products.                                       
                                                                              
    LS and BD, being the counterparties to the                                
    transactions relating to the Distribution Business                        
    of the Indofood Group, are engaged, in the case of                        
    LS, in operating supermarkets in certain major cities                     
    in Indonesia and, in the case of BD, in the                               
    distribution of Pepsi bottler products in Indonesia.                      
                                                                              
    PI, a counterparty to one of the Continuing Financing                     
    Arrangements is engaged in the manufacturing of                           
    beverages products under the license of Pepsico                           
    International.                                                            
                                                                              
    INFORMATION IN RESPECT OF THE COMPANY AND INDOFOOD                        
    The Company is a Hong Kong-based investment and                           
    management company with operations located in                             
    Southeast Asia. The Company's principal business                          
    interests relate to Telecommunications and Consumer                       
    Food Products.