Dongguan, July 11, 2011, Hsu Fu Chi Group today announces that it has entered into a partnership agreement with Nestlé Group, one of the world's largest food companies with a history of over 140 years. This partnership may realize Hsu Fu Chi's vision of being a century-old brand. Under the proposed agreement, Nestlé intends to acquire 60% of Hsu Fu Chi whilst the Hsu family will own the remaining 40%. Hsu Fu Chi's current CEO and Chairman, Mr. Hsu Chen, will continue to lead the company in the new partnership.

Based on this, Hsu’s family agrees to transfer 16.5% stake of its currently holding of 56.5% to Nestlé, which will be in effect after Nestlé completing acquiring the shares of Hsu Fu Chi’s independent shareholders, representing 43.5% of the shares in Hsu Fu Chi, by way of a scheme of arrangement. Nestlé offers a cash price of SGD 4.35 per Hsu Fu Chi share which represents a premium of 24.7% over the volume-weighted average share price over the last 180 days. Nestlé has secured irrevocable undertakings from the two largest independent shareholders - Arisaig Partners Holdings and subsidiaries of the Baring Asia Private Equity Fund which hold 9.0% and 16.5% respectively - to vote in favour of the scheme. The total price to be paid by Nestlé to acquire 60% of Hsu Fu Chi is approximately SGD 2.1 billion.