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SABMiller's Indian subsidiary, Mysore Breweries Limited, in new strategic joint venture

21 May 2003

SABMiller plc announces today that its Indian subsidiary, Mysore Breweries Limited (Mysore), has entered into a joint venture with Shaw Wallace and Company Limited (Shaw Wallace). Mysore will, on completion, hold 50% in a company called Shaw Wallace Breweries Limited (Shaw Wallace Breweries), which will hold the combined brewing interests and licences of the two businesses. The cost of the investment is US$132.8 million, being the book value of the net assets and cash, contributed in exchange for Mysore's 50% interest in Shaw Wallace Breweries.

Graham Mackay, Chief Executive, commented: "Shaw Wallace Breweries will be a powerful new force in Indian brewing. It brings together the local knowledge, brands and experience of our new partners with our best operating practices in a combination that will be considerably stronger than the sum of its parts.

"Mysore is now in a position to take advantage of the 11% per annum growth in the Indian beer market through the joint venture's leading positions in the key beer consuming states of India."

Shaw Wallace has produced beer in India since 1974, is the second largest brewing group in India and currently operates through 7 owned and 11 contracted breweries situated in key beer producing states throughout the country.

Shaw Wallace's key brands include Haywards and Royal Challenge. Importantly, Haywards is the dominant brand in the fast growing strong beer segment.

ENDS

Notes to editors

1. SABMiller plc
SABMiller plc is one of the world's largest brewers, with pro forma 2001/02 lager volumes in excess of 124 million hectolitres. It has a brewing presence in over 40 countries across four continents and a portfolio of strong brands and leading market shares in many of the countries in which it has brewing operations. Outside the USA, SABMiller plc is one of the largest bottlers of Coca-Cola products in the world.

SABMiller plc is listed on the London and Johannesburg stock exchanges.

2. SABMiller in India
SABMiller has operated in India since October 2000, when it bought Narang Breweries, located near Lucknow, in the state of Uttar Pradesh. In June 2001, SABMiller acquired a controlling interest in Mysore Breweries Limited, and, in November 2001, announced the acquisition of a controlling interest in Rochees Breweries Limited. In India, SABMiller has some 8% of the overall beer market and its key brands include Castle Lager and Knock-Out.

SABMiller India's brewing assets were recently merged under Mysore with a brewing presence in Uttar Pradesh, Maharashtra, Karnataka, and Rajasthan, and it has recently acquired a licence and an incomplete brewery in Andhra Pradesh.

3. Shaw Wallace
Shaw Wallace has produced beer in India since 1974, is the second largest brewing group in India and currently operates through 7 owned and 11 contracted breweries situated in key beer producing states throughout the country. Annual beer sales volumes of Shaw Wallace are estimated to be 27% of the total Indian beer market.

Shaw Wallace has built an extensive distribution network in key states covering some 35,000 retailers and 600 distributors.

Shaw Wallace's key brands include Haywards and Royal Challenge. Importantly, Haywards is the dominant brand in the fast growing strong beer segment.

Further information

Sue Clark
Director of Corporate Affairs, SABMiller plc
+44 (0) 20 7659 0191
Mobile: +44 (0) 7850 285 471

Nick Chaloner
Director of Communications, SABMiller plc
+44 (0) 20 7659 0119
Mobile: +44 (0) 7880 502 755

Anna Miller Salzman
Head of Investor Relations, SABMiller plc Mobile:
+44 (0) 20 7659 0106
Mobile: +44 (0) 7973 837 070

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