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Tung Lok Secures First Franchise Contract In Indonesia For Lao Beijing Brand Of Restaurants

BackMay 10, 2004

The Board of Directors of Tung Lok Restaurants (2000) Ltd ("Tung Lok" or the "Company") wishes to announce that its wholly owned subsidiary, Tung Lok Millennium Pte. Ltd. ("Tung Lok Millennium") has entered into a franchise agreement with PT Lao Beijing Indonesia, which is owned by several Indonesian investors including the Djarum Group, to franchise its Lao Beijing brand of restaurants.

PT Lao Beijing Indonesia will open a 7500 square feet restaurant with a seating capacity of 250 in Mangga Dua WTC in Jakarta later this month.

This is the first franchise agreement which the Company has entered into following the completion of its franchising programme. The Company which currently owns and operates two Lao Beijing restaurants in Singapore, has identified Lao Beijing as one of two brands with the most potential for franchising.

Lao Beijing restaurants serve northern Chinese food, including noodles and dumplings. Catering to the large mid-market segment, the two outlets have proven popular as venues for family dining.

Together with other brands such as Lingzhi vegetarian cuisine, the Company hopes to secure up to 10 franchise contracts in 2 to 3 years and expected these will contribute 25% to the Group net profit in the same period.

In recent months, the Company has received requests for franchising of its restaurant concepts from countries in the region. The Company hopes to tap franchisees keen on an opportunity to own a restaurant but do not have sufficient knowledge about the business.

The above transactions are not expected to have any material impact on the net tangible assets per share or earnings per share of the Company for the financial year ending 31 December 2004.

None of the directors and so far as the directors are aware, none of the controlling shareholders or substantial shareholders of the Company has any interest, direct or indirect, in the above transactions.


By Order Of The Board

Tjioe Ka Men
Managing Director
10 May 2004