Foster’s Group Limited (Foster’s) today confirmed the previously announced departure of Mr Ted Kunkel in July 2004, after 36 years with the group including 12 years as President and Chief Executive Officer.

Mr Kunkel’s departure package will comprise:

• superannuation, long service and annual leave entitlements accrued over the 36 years, totalling $12,255,064;
• payments and benefits in lieu of contractual benefits valued at $1,750,000, plus continued participation in the Long Term Incentive Plan (LTIP) which Mr Kunkel was granted in 2000, 2001, 2002 and 2003; and
• a “non-compete” agreement, including the provision of consulting services to the group until 31 August 2006, for $100,000 per annum.

Under his contract Mr Kunkel was entitled to a lump sum on cessation of his employment representing three times his annual cash remuneration. However, by mutual agreement with the Board, Mr Kunkel is foregoing most of this cash payment in return for a considerably lower cash amount and continued participation in his performance-linked LTIP entitlements.

Mr Frank Swan, Chairman of Foster’s, said Mr Kunkel had made an outstanding contribution to Foster’s during his lifetime career with the group.

“In his 12 years as CEO Mr Kunkel transformed Foster’s from a company facing considerable upheaval, with a seriously impaired balance sheet, into one of the world’s leading premium branded beverage companies with a market capitalisation in excess of $9.5 billion,” he said.

Further information:

Media
Lisa Keenan
Tel: +613 9633 2233

Investor Relations
Robert Porter
Tel: +613 9633 2773