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Profit Warning

BackNov 06, 2001

The Board of Directors of Tung Lok Restaurants (2000) Ltd ("Tung Lok" or "the Company") wishes to announce that in view of the sharper-than-expected economic slowdown, the Company is expected to incur a loss for the full financial year ending 31 December 2001.

As disclosed in the release of the first half year results on 28 September 2001, the Board had said that profits were lowered in the period due to start-up and running-in costs incurred by three new outlets. These higher costs continued into the second half as a result of the addition of five new outlets.

The Board had also said in its commentary on the current year performance that "Given the difficult current economic conditions, the Board does not expect the performance of the second half year to be better than that of the first half."

The economic conditions in Singapore have taken a more drastic turn for the worse following the tragic events of September 11, 2001. Recent official projections by the Government have also indicated that Singapore is having its worst recession since independence in 1965.

Accordingly, the Company deems it fit to issue a profit warning ahead of the closure of the full year results.