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Tung Lok Launches First Franchise Contract In Indonesia, Announces Fresh Management Contracts In Indonesia And India As Its Expands Beyond Singapore

BackMay 10, 2004

? 250-seat Lao Beijing restaurant to open in Jakarta this month, Tung Lok's first franchise

  • Listed restaurant chain plans to offer franchise in the region

? Company also announces management contracts in Medan and Mumbai - its first in India

SINGAPORE, May 10, 2004 - Singapore Exchange-listed restaurant owner and operator Tung Lok Restaurants 2000 Ltd ("Tung Lok") today announced it has sealed its first franchise contract in Jakarta for its northern Chinese restaurant brand Lao Beijing and also secured fresh management contracts ("MCs") in Indonesia and India as part of its regional expansion.

The Company, which has been preparing a franchising programme since last year, said the first franchisee, PT Lao Beijing Indonesia, will open a 7,500-square-feet Lao Beijing restaurant with a seating capacity of 250 in Mangga Dua District WTC in the Indonesian capital later this month.

Tung Lok has two Lao Beijing outlets among the 18 restaurants owned and operated by the Group in Singapore. The Lao Beijing restaurants offer old-fashioned Beijing cuisine such as noodles and dumplings and has proven to be popular with family diners in the large mid-market segment.

"Tung Lok is rolling out its franchising strategy after a lot of close study and we are glad that so soon after finalizing the details we have secured the first franchisee. We are offering at least two brands of restaurants - Lao Beijing and Lingzhi vegetarian cuisine - to entrepreneurs who want to own a restaurant but do not have sufficient knowledge about the business," said Tung Lok's Managing Director, Mr. Andrew Tjioe.

While Tung Lok has received numerous enquiries from potential franchisees from the region, including from Malaysia, Thailand and India, it has been very selective on who it would franchise to. Franchisees pay an undisclosed upfront fee and a percentage of revenue which the Company said is "affordable to serious investors".

The Company plans to expand its franchise network to the region in the coming years.

It also announced that it has secured fresh MCs in Medan - bringing to four the number of third-party restaurants managed by the Group in Indonesia - and Mumbai, India - its first in the Indian subcontinent. Tung Lok also has one MC in Pine Valley Chinese Restaurant at the Laguna Country Club in Singapore.

In Mumbai, Tung Lok will provide management consultancy for a Chinese restaurant in the heart of the business district in Mumbai, owned by Mr Henry Tham, a well-known restaurateur and Indian national of Chinese descent.

Tung Lok will train chefs from India before sending its own chefs and managers to help launch a new restaurant in Mumbai which will replace a traditional Chinese restaurant by Mr. Tham.

"Franchising and MCs allow Tung Lok to build an additional stream of income," Mr. Tjioe said.

"With the economic potential of India, it is a market we should not ignore. We have received numerous requests from potential partners and are evaluating each proposal carefully," he said said. "We are making foothold in India and hope to grow our business in the country. We are in discussions with business groups and hotel operators and are exploring more MCs in India or forming joint-ventures to own and operate restaurants there," he added.


~END OF RELEASE~


Company Background

Listed on the SGX-SESDAQ on March 2001, Tung Lok currently operates 19 restaurants in Singapore. Founded in 1980, Tung Lok operates a mixed portfolio of high-end and mid-range restaurants. Its restaurants cater to the discerning diner as well as to patrons who find value in its mid-range outlets such as Lao Beijing, House of Mao Hot Pot and TeaHouse at China Square. For the financial year ended December 31, 2003, the Group recorded a net profit of S$0.9 million on turnover of S$61 million.

Information on the Group's restaurants can be found in www.tunglok.com.


Media Contact Information:

Mr Andrew Tjioe Ka Men
Managing Director
Tung Lok Restaurants 2000 Limited
1 Sophia Road #05-03
Peace Centre
Singapore 228149
Tel: 65-6337-1712 Fax: 65-4337-4225
Email: andrewtjioe@tunglok.com

Issued on behalf of the company by:
WeR1 Consultants Pte Ltd
29 Consultants Pte Ltd
Singpapore 228224
Tel: 65-6737-4844 Fax: 65-6737-4944
Contact: Lai Kok Kin (laikkin@wer1.net) or Tan Chin Lee (tancl@wer1.net)