10:02     MENGNIU DAIRY<02319> - Announcement (14)                            

    ``Founding Individuals''                                                  
    means Niu Gensheng, Deng Jiuqiang, Hou Jiangbin, Sun Yubin, Qiu           
    Lianjun, Yang Wenjun, Pang Kaitai, Lu Jun, Sun Xianhong and Xie           
    Qiuxu, who are all PRC nationals. Niu Gensheng, Lu Jun, Sun Yubin         
    and Yang Wenjun are Directors of the Company. The Founding                
    Individuals have been acting as the controlling group of the              
    Mengniu business since its inception in 1999 and as a result, they        
    as a group are the controlling shareholders of the Company and they       
    are connected persons of the Company;                                     
                                                                              
    ``Group''                                                                 
    means the Company and its subsidiaries;                                   
                                                                              
    ``Guarantee Agreements''                                                  
    means the agreements entered into by Mengniu with each of Mengniu         
    Luannan, Mengniu Tangshan, Mengniu Beijing, Mengniu Jiaozuo,              
    Mengniu Taian, Mengniu Shenyang, Mengniu Shanxi and Mengniu               
    Maanshan on 18 May 2005 to act as guarantor for future bank               
    borrowings by each of the Mengniu Subsidiaries;                           
                                                                              
    ``Hong Kong''                                                             
    means the Hong Kong Special administrative Region of the PRC;             
                                                                              
    ``Ice Cream Products Inventory Adjustment Agreement''                     
    means the agreement entered into among Mengniu, Mengniu Dangyang,         
    Mengniu Jiaozuo, Mengniu Jinhua, Mengniu Shenyang, Mengniu Taian,         
    and Mengniu Maanshan on 18 May 2005 regarding the inventory               
    adjustment of ice cream products;                                         
                                                                              
    ``Independent Board Committee''                                           
    means the independent board committee, comprising Mr Wang Huaibao,        
    Mr Zhang Julin and Mr Li Jianxin, all being independent                   
    non-executive directors to advise the independent shareholders;           
                                                                              
    ``Listing Rules''                                                         
    means The Rules Governing the Listing of Securities on The Stock          
    Exchange of Hong Kong Limited (as amended from time to time);             
                                                                              
    ``Mengniu''                                                               
    means Inner Mongolia Mengniu Milk Industry (Group) Co., Ltd., ()          
    a sino-foreign joint stock limited company incorporated in the PRC        
    with limited liability and the principal operating subsidiary of          
    the Group;                                                                
                                                                              
    ``Mengniu Baotou''                                                        
    means  (Inner Mongolia Mengniu Dairy Baotou Co., Ltd.), a company         
    incorporated in the PRC as a limited liability company, an indirect       
    non-wholly owned subsidiary of the Company;                               
                                                                              
    ``Mengniu Beijing''                                                       
    means  (Mengniu Dairy (Beijing) Co., Ltd.), a company                     
    incorporated in the PRC as a limited liability company, an indirect       
    non-wholly owned subsidiary of the Company;                               
                                                                              
    ``Mengniu Dangyang''                                                      
    means  (Mengniu Dairy (Dangyang) Co., Ltd.), a company                    
    incorporated in the PRC as a limited liability company, an indirect       
    non-wholly owned subsidiary of the Company;                               
                                                                              
    ``Mengniu Dengkou''                                                       
    means  (Mengniu Dairy (Dengkou Bayan Gaole) Co., Ltd.), a company         
    incorporated in the PRC as a limited liability company, an indirect       
    non-wholly owned subsidiary of the Company;                               
                                                                              
    ``Mengniu Founding''                                                      
    means  (Inner Mongolia Mengniu Founding Industry Management Co.,          
    Ltd.), a company incorporated in the PRC as a limited liability           
    company, an indirect non-wholly owned subsidiary of the Company;          
                                                                              
    ``Mengniu Jiaozuo''                                                       
    means  (Mengniu Dairy (Jiaozuo) Co., Ltd.), a company                     
    incorporated in the PRC as a limited liability company, an indirect       
    non-wholly owned subsidiary of the Company;                               
                                                                              
    ``Mengniu Jinhua''                                                        
    means  (Jinhua Mengniu Dairy Co., Ltd.), a company incorporated           
    in the PRC as a limited liability company, an indirect non-wholly         
    owned subsidiary of the Company;                                          
                                                                              
    ``Mengniu Keerqin''                                                       
    means  (Inner Mongolia Mengniu Dairy Keerqin Co., Ltd.), a company        
    incorporated in the PRC as a limited liability company, an indirect       
    non-wholly owned subsidiary of the Company;                               
                                                                              
    ``Mengniu Luannan''                                                       
    means  (Mengniu Dairy (Luannan) Co., Ltd.), a company                     
    incorporated in the PRC as a limited liability company, an indirect       
    non-wholly owned subsidiary of the Company;