SABMiller plc ("SABMiller"), one of the world's leading brewers, announced on July 29 the closing of its strategic investment in Harbin Brewery Group Limited ("Harbin"). SABMiller has acquired a 29.6% stake in Harbin from China Enterprise Development Fund ("CEDF"), for HK$675 million (approximately US$87 million) in cash, through a new subsidiary Gardwell Limited. As part of the agreement, SABMiller has formally entered into a Strategic Investor Agreement to provide the framework for the sharing of best practices and the transfer of relevant expertise. The closing of the transaction consolidates SABMiller's status as the leading international brewer in China.

SABMiller plc is one of the world's leading brewers, with major brewing and distribution operations in America, Africa, Europe and Asia. It is the world's second largest brewer by volume with 122 breweries in over 40 countries and some 45,000 employees. In the year ending 31 March 2003, SABMiller generated US$770 million pre-tax profit from turnover of US$9.1 billion. The company is listed on both the London and the Johannesburg stock exchanges. SABMiller, through its joint venture partner, China Resources Breweries, operates 30 breweries in 9 provinces in China with total volumes of over 27 million hectolitres in the year ended 31 March 2003. It entered the China market in 1994 and is one of the few profitable foreign brewers operating in China.

Following the acquisition of three breweries during 2002 Harbin Brewery Group Limited now has an installed capacity of approximately 12.5 million hectolitres and pro forma sales volumes of 10.4 million hectolitres. The company, through the Harbin brand, is a leader in the North-Eastern China market in terms of market share and profitability.

The Chinese beer market is one of the fastest growing markets in the world. Consumption is growing at over 6% per annum and as a result the Chinese market is now believed to be the largest beer market in the world by volume.