In May 2010, Foster’s Group Limited (Foster’s) announced that it intended to pursue a structural separation to create separate stock exchange listings for Beer and Wine (a “demerger”), subject to a detailed evaluation of the issues, costs and benefits to Foster’s shareholders, necessary regulatory and statutory approvals, and ongoing assessment of prevailing economic and capital market conditions.

Work on the potential demerger continues to progress well and if a demerger proceeds it is expected to be implemented in the first half of calendar 2011.

Foster’s has undertaken a process to confirm the senior leadership teams for the Beer (Foster’s) and Wine (Treasury Wine Estates) businesses post demerger, including determining the future positions of the current directors of Foster’s.

If the demerger proceeds, the Boards of Foster’s and Treasury Wine Estates will include:

• Foster’s - David Crawford AO (Chairman); Michael Ullmer; Paul Clinton
• Treasury Wine Estates – Max Ould (Chairman); Lyndsey Cattermole AM

It is also expected that further Non-Executive Directors will be announced prior to any demerger proposal being submitted to shareholders, with the intention that these directors be appointed to the boards of Foster’s and Treasury Wine Estates upon the demerger being implemented.

After a market search and an assessment process, the nominations for the Chief Executive Officer positions in the event that the demerger proceeds are:

• Foster’s – John Pollaers
• Treasury Wine Estates - David Dearie

The Chief Executive Officer of Foster’s, Ian Johnston, will leave Foster’s upon successful implementation of the Demerger.

Ian Johnston said today: “I congratulate David and John on their nominations and look forward to working with them over the coming months to ensure a smooth transition through the demerger process. David and John will now focus on confirming their senior leadership teams and realising the full potential of both the wine and beer businesses.”

Further information:

Media                                                       Investors
Troy Hey                                                  Chris Knorr
Tel: +61 3 8626 2085                           Tel: +61 3 8626 2685
Mob: +61 409 709 126                         Mob: +61 417 033 623

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