BANGKOK, Nov. 23 /Xinhua-PRNewswire/ -- The Thai Life Group signed an
agreement yesterday with Ginebra San Miguel, Inc., a listed subsidiary of San
Miguel Corporation, to form a new joint venture distillery business for the
Thai market.
    The joint venture will be formed through an acquisition of a 40 per cent
stake in C.N.T. Wine and Liquor Co., Ltd, a subsidiary of the Thai life Group
which owns a license to build and operate a distillery in Amphur Thamuang,
Kanchanaburi in the West of Thailand.  The facility is now under construction
and is expected to be completed in 2006.  Upon completion of the transaction,
the Thai Life Group will control 50 per cent of the joint venture, San Miguel
Corporation will own 40 per cent and the remaining 10 per cent will be owned
by minority investors.  The distillery will have nationwide distribution.
    ING Corporate Finance provided local and regional financial advice to the
Thai Life Group from Bangkok, Hong Kong and Manila.  Devonshire Capital
provided local financial advisory support.
    The joint venture will allow Thai Life Group to diversify its activities
into the alcoholic beverage industry from its current leading position in the
premium beer market.  The group currently owns a majority of Thai Asia Pacific
Brewery Co., Ltd., a manufacturer and distributor of Heineken and Tiger beer.
Heineken currently has over 85 per cent market share of the premium beer
segment.  The group expects that the new joint venture with San Miguel
Corporation will provide access to the large and growing Thai liquor market
with a size of approximately 800 million liters a year.  With strong
shareholders, the new venture will be able to take advantage of several
synergies including technical expertise and product development from San
Miguel and local knowledge and distribution from the Thai Life Group.
Thailand's liquor market is expected to grow by five per cent per year of
which over 70 per cent will be dominated by the local spirits market.
    The Thai Life Group's business activities currently encompass three core
areas including insurance, alcoholic beverages and hotel and property
investment.  The group is the leading local player in the Thai insurance
market.  In addition, the Thai Life Group has successful joint venture
operations with the Cardif Insurance Group and the Accor Group.
    San Miguel Corporation is the largest consumer product manufacturer and
distributor in the Philippines.  The group's business portfolio ranges from
beer, liquor, non-alcoholic beverages, food, agribusiness, packaging and real
estate.  Alcoholic beverages, mainly beer and liquor, represent over 33 per
cent of the group's sales revenue of P150,000 million (US$2.7 billion).
    In the liquor segment, San Miguel controls approximately 50 per cent of
the Philippines' liquor market through its subsidiary, Ginebra San Miguel,
which is a unit that produces gin and rum.  Its leading brands in liquor
include Ginebra San Miguel, Grand Matador Brandy and Vino Kulafu.  The group
has pursued an aggressive expansion strategy throughout the region including
Thailand, Vietnam, and Australia.  In Thailand, the group recently made major
investments including an acquisition of Thai Amarit Brewery in April 2004 and
the establishment of a venture in Rayong Industrial Estate in August 2004
which will involve the manufacture and distribution of non-alcoholic
beverages, processed food and feed mills.

    Contact:

    Mr. Winyou Chaiyawan
    Thai Life Group
    Tel: +662-246-9738

    Stephen Briones
    ING Corporate Finance
    Tel: +662-263-3200

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