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Opening Of A New "Dian Xin" (Dim Sum) Restaurant

BackApr 02, 2001

The Board of Directors of Tung Lok Restaurants (2000) Ltd ("the Company") is pleased to announce that its wholly-owned subsidiary, Tung Lok Millennium Pte Ltd ("TLM") has entered into a tenancy agreement with China Square Food Centre Pte Ltd to lease all the premises on the third storey of the China Square Food Centre located at 51 Telok Ayer Street, Singapore 048441 ("the Premises") with an area of approximately 11,400 square feet for a term of three years commencing on 15 June 2001 or such earlier date when TLM commences business thereat.

Part of the Premises was previously leased by House of Mao Restaurant Pte Ltd ("House of Mao") which operated a theme restaurant. The Company has terminated the management agreement dated 8 February 2001 (disclosed in the Prospectus dated 10 March 2001) with House of Mao following the cessation of its operation. The termination of the management agreement will not have any material effect on the consolidated earnings per share and net tangible asset per share of the Company for the financial year ending 31 December 2001.

TLM will operate a "dian xin" (dim sum) restaurant in the Premises known as "Teahouse at China Square" ("the Restaurant"). The Restaurant is expected to commence business on 1 June 2001. The location of the Restaurant is in line with our strategy of locating our restaurants at accessible locations. The capital expenditure (i.e. renovation and fittings costs) of about $900,000/- will be funded from internal resources and hire-purchase financing while the working capital of about $300,000/ will be utilised from the IPO proceeds.

The new lease and operation of the Restaurant ("the Transaction") is not expected to have any material effect on the consolidated earnings per share and net tangible asset per share of the Company for the financial year ending 31 December 2001.

None of the Directors or substantial shareholders of the Company has any interest, direct or indirect in the Transaction, save through their respective shareholdings in the Company.