The Foster’s Group Limited (Foster’s) advises that it has appointed external advisers to commence the divestment of its residential property business, the Lensworth Group (“Lensworth”).

Foster’s had indicated previously that Lensworth, while a highly successful and high returning business, is a non-core asset within its premium branded beverages model. Following the successful resolution of the Emanuel Group litigation (as announced on 13 May 2004) relating to Lensworth, Foster's is free to pursue divestment options for the business with the objective of maximising returns for shareholders.

Foster’s will advise the market of any developments regarding Lensworth in due course.

Background Information on Lensworth:

The Lensworth Group, Foster's residential property division, is a leader in creating Australia's most liveable communities. Lensworth lays the groundwork for entire communities, providing infrastructure such as roads, power, water, sewerage and essential services. In developing broadacre urban sites Lensworth also provides all the elements of a successful community including schools, parkland, recreation, shopping centres and business parks.

Lensworth is currently developing major communities in Queensland (Kawana Waters, North Lakes, Bellvista, Caloundra), New South Wales (Glenmore Park, Wallarah Peninsula), Victoria (Highlands) and South Australia. Lensworth employs around 100 people.

At 30 June 2003, Lensworth had assets under management (or inventory) with a book value of $283 million (including $107m in payables and liabilities). For the twelve months ending 30 June 2003, Lensworth generated EBITA of $28.6 million.

Further information:

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