[Press Release]

Mengniu and Danone Strengthen Strategic Alliance As Danone Subscribes to a Private Placement by Yashili

(Hong Kong, 31 October 2014) - China Mengniu Dairy Company Limited (2319.HK, "Mengniu") and Yashili International Holdings Ltd (1230.HK, "Yashili") today jointly announced that both parties together with Danone have signed an agreement on 30
October, under which Danone will take part in a private placement by Yashili totaling approximately HK$4.39 billion, at a price of HK$3.70 per share. The transaction will give Danone an equity stake of 25% in Yashili, which is one of the People's Republic of China's major infant milk companies. As part of this agreement, Danone will recommend candidates to serve as Yashili's senior executives.
Through this alliance, Mengniu, Yashili and Danone intend to expand and strengthen their cooperation in the infant milk formula ("IMF") business in the PRC. The parties will study the possibility of a minority equity investment by Yashili in Danone's subsidiary Dumex China.
This transaction extended the scope of the strategic alliance in yogurt and chilled business established in 2013 between Mengniu, Danone and COFCO Group, China's leading state-owned company in the food sector. Through this strengthened alliance, Danone and Mengniu will leverage Danone's world-leading technology and know-how in the IMF industry and Mengniu's market experience in the PRC to grow Yashili and develop a wide range of products that meet the highest standards within the industry.

Mr. Emmanuel Faber, Chief Executive Officer of Danone, said "Building on our successful cooperation in yogurt and chilled business, we are today strengthening the winning team formed by Danone and Mengniu by acquiring an equity stake in Yashili, combining Mengniu's wide-reaching network in China with Danone's international expertise in infant milk products. I am delighted with this transaction and am confident in our ability to grow all of our brands in the Chinese market." Ms. Elaine Sun, Chief Executive Officer of Mengniu and Chairman of the Board of Yashili, said, "I am very pleased with the cooperation with Danone, which will enhance Yashili's offering of infant milk formula products to the Chinese consumers which meet the international standards. Mengniu will continue to drive Yashili's transformation and innovation in the area of organization structure, brand, channel and products, in order to accelerate its progress of internationalization."

~ More~

Page 1

Mengniu and Danone Bolster Strategic Alliance

Danone will Subscribe to a Private Placement by Yashili

31 October 2014

Mr. Frank Ning, Chairman of COFCO Group and Chairman of the Board of Mengniu, said "I am very happy to enter this new stage in our cooperation with Danone and Mengniu. This transaction reflects our commitment to working together to offer safe and quality infant nourishment products to Chinese consumers."

Danone's acquisition of an equity stake in Yashili is subject to the approval of Yashili's shareholders at its Extraordinary General Meeting and the relevant authorities. It is expected to be finalized in coming months.
~ End ~

About China Mengniu Dairy Company Limited

China Mengniu Dairy Company Limited and its subsidiaries manufacture and distribute quality dairy products in China. It is one of the leading dairy product manufacturers in China, with MENGNIU as its core brand. Mengniu's diversified products range includes liquid milk products (such as UHT milk, milk beverages and yogurt), ice cream, milk formula and other dairy products (such as cheese). Mengniu's liquid milk products ranked first, in terms of sales volume and sales value, among similar products in China in 2013, according to China Industrial Information Issuing Centre. By the end of June 2014, the Group's annual production capacity reached 8.04 million tons. In March 2014, Mengniu became a Hang Seng Index constituent, making it the first blue chip Chinese dairy product manufacturer.

About Danone

Danone is an international company present on all continents. The group holds top positions in healthy food through four businesses: Fresh Dairy Products, Early Life Nutrition, Waters, and Medical Nutrition. Its mission is to bring health through food to as many people as possible.
Danone has over 190 production plants and around 104,000 employees. In 2013, the company generated sales of over €21 billion, with more than 60% in emerging countries. Listed on Euronext Paris, Danone is a component stock of leading social responsibility indexes including the Dow Jones Sustainability Indexes, Vigeo and the Ethibel Sustainability Index. Danone is also ranked no. 1 in the 2013 ATNI index.

About Yashili International Holdings Ltd

Founded in 1983, Yashili International has developed into a modern large-scale company with over 5,000 staff. Yashili is specialized in research, development and manufacturing of nutritious food and now has infant milk formula as its core products. The company has established four domestic production sites in Chaozhou City and Guangzhou City of Guangdong Province, Qiqihar City of Heilongjiang Province, and Shuozhou City of Shanxi Province. The company is currently building a world-leading infant milk formula plant in Waikato, New Zealand. A strong alliance has been formed after Mengniu's successful acquisition of Yashili in 2013. With the help of this powerful new shareholder, Yashili kicked off to a fresh start.

For Enquiries:

Strategic Financial Relations (China) Limited

Karen Hung

Tel: +852 2114 4908

Email: karen.hung@sprg.com.hk

Janice Au

Tel: +852 2864 4874

Email: mailto:janice.au@sprg.com.hkjanice.au@sprg.com.hk

Page 2

distributed by