Foster's response to SRP target statement

Melbourne, 17 February 2005

Nothing in the Target's Statement released today by Southcorp Limited ("Southcorp" or "the Company") changes Foster's Group Limited's ("Foster's") view that its $4.17 cash per share offer price is an outstanding price for Southcorp shareholders.

Foster's considers that there is nothing in the Target's Statement that justifies rejection of its offer and believes the Target's Statement lacks credibility. Southcorp has not provided sufficient information to allow its shareholders to make an informed decision, specifically:

• No valuation - Southcorp's directors have not provided any valuation of the company's shares;
• No independent expert's report - Southcorp's directors have not engaged an independent expert to provide a valuation of the company's shares; and
• No alternative bidder - Southcorp's directors have not suggested that there are any counter bidders.

Southcorp's directors have placed undue emphasis on their speculative estimates of potential synergies arising from a combination of Foster's and Southcorp. Southcorp shareholders can only benefit from any such synergies by accepting Foster's offer.

Foster's President and Chief Executive Officer, Trevor O'Hoy said: "Nothing in Southcorp's Target's Statement alters our view that $4.17 per share is a great price for Southcorp shareholders."

 

Further information:

Media

Lisa Keenan

Tel: +61 3 9633 2265

Mob: 0409 150 771

Investors

Chris Knorr

Tel: +61 3 9633 2685

Mob: 0417 033 623