NEW CHIEF EXECUTIVE FOR DAIRY FARM GROUP

23rd April 1997 -- Dairy Farm International Holdings Limited announced today that Mr. Ronald J. Floto is to be appointed Chief Executive of the Group with effect from 12th June 1997. Mr. Floto is currently Executive Vice President of Kmart Corporation and President of Super Kmart in the United States.

Mr. Floto has over 24 years of retail experience in the United States. His current responsibilities with Kmart include all drugstore and related activities, the Super Kmart supercentres merchandising and operations, and managing the logistics of all distribution centres. His previous positions were with Kash N'Karry Food Stores, Inc. and Jewel Companies Inc. He has also acted as an advisor to the Seiyu Group, Dairy Farm's joint venture partner in its Wellsave supermarket chain in Japan.

"We are very pleased to welcome Mr. Floto to Dairy Farm. His extensive experience in the supermarket industry will prove invaluable to the Group as it develops its existing formats and pushes ahead in new markets in the Asia Pacific," said Mr. Simon Keswick, Chairman of Dairy Farm.

Mr. Floto will replace Mr. Chris Nelson, who has been acting Chief Executive and had previously announced his intention to return to the United Kingdom before assuming his current position. "We would like to thank Chris Nelson for the major contribution he has made to the Group through this transitional period and are pleased that he will continue to work with the Group in Europe," said Mr. Keswick.

Mr. Floto, who is age 54, has an MBA from Harvard Business School. He is a graduate of West Point and served with the US Army from 1965 to 1973.

Dairy Farm has supermarket, drugstore and other retail interests across Asia, in Australasia and in Europe; has a dairy products manufacturing joint venture in Hong Kong and China; and holds a 50% interest in Maxim's, Hong Kong's largest restaurant chain. The Group had a turnover of US$13 billion in 1996 and operates 2,800 outlets worldwide employing over 90,000 people.