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BURNS PHILP EXPANDS YEAST OPERATIONS IN CHINA

 BURNS PHILP EXPANDS YEAST OPERATIONS IN CHINA
 SYDNEY, Australia, July 20 /PRNewswire/ -- Burns, Philp & Company


Limited (ADRs - OTC Bulletin Board: 3BPHCY) has signed a joint venture agreement with the Acheng Sugar Refinery at Harbin in China's Heilongjiang Province to construct a new yeast plant, it was announced today.
 The agreement, which involves building a new 3,000-tonne-capacity factory, has the approval of the Provincial Government, and has been forwarded to the National Government for formal ratification, which is expected within the next few weeks.
 The joint venture, owned 70 percent by Burns Philp and 30 percent by Acheng, will build the new factory on a greenfields site in Harbin utilizing Burns Philp's experience in commissioning new plants featuring proven technology. Production at Acheng Sugar's current plant will continue during construction. This includes the manufacture of dried and compressed yeast for baking and brewing yeast.
 The new Harbin plant was chosen from many joint venture offers made to Burns Philp from Chinese firms seeking strategic alliances and joint ventures. "These offers have followed the success of Burns Philp's first joint venture at Meishan in southern China, which has been operating since 1986 and produces 3,000 tonnes of dried yeast per year," said Andrew Turnbull, managing director of Burns Philp.
 The Harbin area features the highest bread and wheat consumption in China, due to the influence of Russian neighbors and the extremely cold winters. At present, Heilongjiang Province, with a population of some 35 million people, contains no yeast plants of major size, and relies on foreign imported dry yeast. The new plant will be readily supplied with raw material as the Heilongjiang Province is a major producer of beet sugar.
 Turnbull commented, "We are confident that Meishan and Harbin are the first steps in establishing a strong market share in this very populous country. Our technical expertise in yeast has allowed us to produce a product specifically formulated to meet the demands of the Chinese consumer at a lower cost."
 The shift in China's economy has created a growing middle class and a demand for Western goods, including food. Bread is growing in popularity, particularly for breakfast. Like their Western counterparts, many Chinese women are turning to convenience foods such as bread in order to juggle family and work commitments.
 The Chinese government is also encouraging the consumption of bread as an alternative to rice. By diversifying the staple diet, the government hopes to ease the pressure the country's enormous population places on the success of the rice crop.
 Through its Meishan plant, Burns Philp has marketed an improved product, supported by technical baking staff. The Yeast Asia Pacific Division of Burns Philp Food & Fermentation provides technical support and ongoing demonstration tours to commercial and village bakeries throughout China.
 With the addition of the second factory at Harbin, and a potential third joint venture agreement for a new plant in Shanghai to be announced at a later date, Burns Philp hopes to maximize their marketing and technical expertise across China.
 Arthur Aroney, general manager of Yeast Asia Pacific, will oversee the operations from Australia and a proposed base in Shanghai. A 20-year veteran in Asia, he brings a wealth of expertise to the new ventures.
 Burns Philp shares, listed on the Australian Stock Exchange, are traded in the United States in the form of American Depositary Receipts (ADRs). The ADRs are quoted on the National Association of Securities Dealers' Electronic Bulletin Board (Symbol: 3BPHCY), and are traded in the Pink Sheets. One ADR equals six Burns Philp shares.
 -0- 7/22/92
 /CONTACT: Susanne Larson, (61-2) 259-1296, or home, (61-2) 810-0105, or Andrew Turnbull, (61-2) 259-1111, both of Burns Philp, in Sydney; or Paul Whitelaw of Hill and Knowlton, in New York, 212-697-5600, for Burns Philp/ CO: Burns, Philp & Company ST: IN: FOD SU:


GK -- NY045 -- 1820 07/22/92 11:07 EDT
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Date:Jul 22, 1992
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