Anheuser-Busch Announces Offer for China's Harbin Brewery.

Business Editors

HONG KONG--(BUSINESS WIRE)--June 1, 2004

Anheuser-Busch (NYSE:BUD), a leading global brewer, today announced a mandatory general offer for Harbin Brewery Group Limited (HKSE: 0249.HK) at a price of HK$5.58 per share. This offer represents a premium of nearly 30 percent over the competing offer of HK$4.30 per share.

On May 31, Anheuser-Busch agreed to purchase an additional 6.9 percent in Harbin Brewery from funds managed by Capital International, Inc. for a price of HK$5.58 per share. Together with the 29.1 percent purchased earlier in the month, Anheuser-Busch owns a total of 36.0 percent of Harbin Brewery.

In addition, members of Harbin management agreed to sell to Anheuser-Busch the shares they will receive upon exercise of their stock options on June 27, representing approximately 2.1 percent of Harbin Brewery. On a fully diluted basis, the combination of these stakes will represent a total of 37.4 percent.

"Our initial investment in Harbin Brewery and this general offer reflect the strategic value Anheuser-Busch places on the company," said Patrick Stokes, president and chief executive officer of Anheuser-Busch Cos., Inc.

"Harbin Brewery has leading brands, an experienced and capable management team and a strong position in the Chinese beer industry. Along with our alliance with Tsingtao, China's largest brewer, and our successful Budweiser Wuhan International Brewing Co. operation, this investment in Harbin Brewery reinforces our commitment to China, provides future benefits to all three companies, and is consistent with our stated strategy of investing in leading brewers in growth countries," Stokes added.

The offer is conditional only on acceptances that, together with shares owned or acquired by Anheuser-Busch, would result in Anheuser-Busch owning more than 50 percent of the issued voting share capital.

"The general offer should be very attractive and compelling to all existing shareholders," said Stephen J. Burrows, chief executive officer and president of Anheuser-Busch International, Inc.

"Our general offer, combined with our record of successfully building the Budweiser and Bud Ice brands in China, working effectively with local management and contributing to the communities in which we do business, establish our company as the most attractive buyer for Harbin Brewery," Burrows added. "Harbin management supports this offer and prefers Anheuser-Busch as their long-term strategic partner."

In addition to the 36 percent stake in Harbin Brewery, Anheuser-Busch holds a 9.9 percent share in Tsingtao Brewery Co. Ltd. Anheuser-Busch first invested in Tsingtao in 1993 and formed a strategic alliance with Tsingtao in 2002, which will result in Anheuser-Busch increasing its ownership to 27 percent over the next several years. Anheuser-Busch also owns 97 percent of the Budweiser Wuhan International Brewing Co. Ltd. in Wuhan, China, which produces the world-famous Budweiser beer, a leading international premium beer brand in China. The Wuhan brewery achieved record production in 2003 and is currently expanding its capacity to 2.7 million barrels (3.2 million hectoliters).

Based in St. Louis, Anheuser-Busch is the leading U.S. brewer. In addition to Tsingtao Brewery and Harbin Brewery, Anheuser-Busch equity investments include a 50 percent share in Grupo Modelo, Mexico's leading brewer, and a 20 percent equity position in Compania Cervecerias Unidas (CCU), which has strong positions in both Chile and Argentina.

In a survey of 10,000 business leaders and securities analysts, Anheuser-Busch ranked first among beverage companies in quality of products and services researched in FORTUNE magazine's 2004 "Global Most Admired Companies" listing. The company also is one of the largest theme park operators in the United States, is a major manufacturer of aluminum cans and is the world's largest recycler of aluminum beverage containers. For more information, visit www.anheuser-busch.com.

The directors of Anheuser-Busch Cos., Inc., and Anheuser-Busch Hong Kong Investment Co., Ltd., jointly and severally accept full responsibility for the accuracy of the information contained in this announcement and confirm, having made all reasonable enquiries, that to the best of their knowledge, opinions expressed in this announcement have been arrived at after due and careful consideration and there are no other facts not contained in this announcement, the omission of which would make any statement in this announcement misleading.

In accordance with normal Hong Kong market practice and subject to applicable regulatory requirements, Anheuser-Busch Cos., Inc., and Anheuser-Busch Hong Kong Investment Co., Ltd., or their affiliates or nominees or brokers (acting as agents) may from time to time make certain purchases of, or arrangements to purchase, Harbin shares outside the United States, other than pursuant to the offer either in the open market at prevailing prices or in private transactions at negotiated prices. Any such purchases will be made in compliance with applicable Hong Kong and United States rules and will be disclosed in the offer document.