Following the issue of stock exchange announcement dated 23 June 2003 – “Discussions in Asia” – Carlsberg Breweries A/S and Khun Charoen/Chang Beverages Pte. Ltd. have not succeeded in resolving their disagreement regarding the planned joint venture Carlsberg Asia, Carlsberg reported in a press release. On August 1, Carlsberg Breweries has notified Khun Charoen/Chang Beverages that Carlsberg Breweries terminates the joint venture. Carlsberg Asia will remain a 100 % owned subsidiary of Carlsberg Breweries.

"We have terminated the joint venture amongst other things because we are under the distinct impression that the character of the companies which Chang Beverages were to transfer to Carlsberg Asia does not correspond with what was agreed upon and that the value of these are disproportionate to the assets which Carlsberg Breweries has transferred to Carlsberg Asia" says Nils S. Andersen, President and Group Executive Officer of Carlsberg Breweries.

"Carlsberg Breweries has spent much time and many resources trying to establish a dialogue with Chang Beverages, however, the management of Carlsberg Breweries no longer believes that it is possible to establish a constructive cooperation on a reasonable basis and therefore we have decided to terminate the joint venture. We are still convinced that Asia holds positive development possibilities, and that there is a major potential for the Carlsberg brand in the region,” ends Nils S. Andersen.

Any litigation in connection with the termination of the joint venture shall be settled by arbitration in London. Carlsberg Breweries still expects the change in the accounting for Carlsberg Asia will have no significant effect on the operating profit of Carlsberg Breweries in 2003 as the loss of profit from the Thai activities (including the profit guarantee) correspond to the inclusion of the Carlsberg Asia results which change from 50 per cent to 100 per cent. For practical reasons, the changed accounting will take place as of 3rd quarter (1 July) this year.

Having binned plans for a joint venture with Thailand's Khun Charoen/Chang Beverages Pte Ltd, the Danish brewer Carlsberg Breweries AS is searching for takeover targets in Asia, according to Danish press reports today. The daily Boersen reported Carlsberg chief executive Nils Smedegaard Andersen as saying: "As in other core regions we are now looking at possible companies to acquire."

He said that there were no concrete plans he wanted to talk aboutbut added that the company had capital resources of DKR20 billion, which was sufficient for the next steps that need to be taken in Asia.

The company would also look at ways to grow its own brands in the region, he added.

05 August, 2003