Lion Brewery in joint venture

PARTNERSHIP: Lion Brewery Ceylon Limited (LBCL) has entered into a joint venture partnership with Carlsberg Breweries A/S of Denmark, who would lead its initial venture in India, in order to pursue its strategy to enhance its position in Asia by commencing a greenfield Brewery in Rajasthan, India. Carlsberg Breweries A/S and its Asian subsidiary, Carlsberg Brewery Malaysia Berhad already has a strategic alliance with LBCL and its holding company, The Ceylon Brewery Limited. LBCL will hold 22.5% in this venture, whilst Carlsberg Breweries A/S will hold 45%.

The Industrialisation Fund for Developing Countries (IFU) - Denmark will hold 10% and other investors will hold the balance 22.5% of the equity.

LBCL together with the other joint venture partners entered into a shareholders agreement on December 7, 2006.