Japan, Tokyo: Kirin Brewery Company, Limited (Kirin) announced on January 11, 2005 that it had acquired 117.27 million class B shares of Philippines San Miguel Corporation (SMC), representing 4.12% of the outstanding shares of SMC, from the holdings of the SMC Retirement Plan. The shares were transacted at a price of 75 pesos per share, with a total value of about 8.8 billion pesos (about ¥16.3 billion). Together with a previous investment in SMC in 2002, Kirin now holds a 19.67% stake in SMC. Total number of SMC shares now held by Kirin 559,830,000 shares

SMC is the largest food and beverage company in the Philippines, and is expanding its operations in Asian-Pacific regions including Thailand, Malaysia, Indonesia, Vietnam, Australia and China.

Kirin is targeting growth in its overseas alcohol beverages business in Asia and Oceania, and is building a strong operational base for business expansion in the region. In line with this approach, Kirin believes that SMC is the right partner to maximize business opportunities and bring synergies among Kirin Group companies in the region.

President of Kirin Brewery Company, Limited, Mr. Koichiro Aramaki, said “San Miguel Corporation has been an important partner for us in Southeast Asia since our investment in 2002. San Miguel's strategy for Asia and Oceania fits well with ours, and I am confident that this transaction will be another successful step in strengthening our long-term partnership.”

San Miguel Corporation with its headquarters Manila, the Philippines was represented by Eduardo M. Cojuangco, Jr. Net sales in 2003 were approximately 148.6 billion pesos (approximately ¥316.5 billion at average exchange rate in 2003 of 1 peso = ¥2.13). Number of employees approximately 26,000. Main business of San Miguel is Beverage business: production and sale of beer, spirits and soft drinks; Food business: sale of processed meats; production and sale of dairy foods and animal feed; Packaging business: can, plastic and glass operations. San Miguel Corporation owns beer production facilities in Asia and Oceania.