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China Foods Limited announced today COFCO Coca-Cola Beverages Limited (CBL), a subsidiary of the Company, entered into an agreement with Coca-Cola China Industries Limited (CCCI) under which CBL will dispose CBL companies.

In addition, CBL will transfer all the outstanding shareholder's loans totalling approximately HK$145.8 million ($18.69 million) owed to CBL by each of the CBL companies.

Following first completion, the CBL companies and Jilin Bottler will cease to be subsidiaries of the Company. CBL will acquire all the issued share capital in the CCCI Company from CCCI. In addition, CCCI will transfer all the outstanding shareholder's loans totalling approximately HK$54.9 million.

The CCCI Company in turn holds majority interests in each of the CCCI Bottlers.

Following first completion, the CCCI company and the CCCI bottlers will become indirect non wholly owned subsidiaries of the Company. The consideration for the disposal is 346.2 million yuan and 50 million yuan to be payable by CCCI at first completion.

The completion is expected to no later than September 30, 2007. CBL will acquire from CCCI Beijing from CCCI.

In addition, CCCI will transfer all the outstanding shareholder's loans totalling approximately HK$128.5 million owed to CCCI.

Following second completion, CCCI Beijing and Beijing Bottler will become indirect non wholly owned subsidiaries of the Company. The consideration for the acquisition is 270 million yuan.

Completion will not be later than January 10, 2009.