Investor Relations

The Directors of Tung Lok Restaurants (2000) Ltd (the "Company") are pleased to announce that the Company has signed a placement agreement (the "Placement Agreement") on 24 October 2002 with Chip Lian Investments Pte. Ltd., a company controlled by Mr Oei Hong Leong ("Subscriber") pursuant to which the Subscriber has agreed to subscribe for 20,000,000 new ordinary shares of par value S$0.025 each in the capital of the Company (the "Placement Shares") at S$0.112 per Placement Share for an aggregate consideration of S$2,240,000.

The Placement Price of S$0.112 for each Placement Share represents a discount of 10.0% to the weighted average price for trades done on 23 October 2002.

The Placement Shares, when issued and fully paid, will rank pari passu in all respects with the ordinary shares of the Company existing at the date of issue of the Placement Shares except for any dividends, distributions or entitlements the record date of which falls on or before such date of issue.

The Private Placement is conditional upon, inter alia, in-principle approval being granted by the Singapore Exchange Securities Trading Limited for the listing of and quotation for the Placement Shares on the Official List of the Stock Exchange of Singapore Dealing and Automated Quotation System.

The estimated net proceeds of the Private Placement of approximately S$2.17 million will be used for general working capital purposes. Pending the deployment of the net proceeds, such proceeds may be placed as deposits with financial institutions or invested in short term money markets or debt instruments or for any other purposes on a short term basis as the Directors may deem fit.

When completed, the Private Placement will increase the issued share capital of the Company from S$2,500,000 divided into 100,000,000 shares of S$0.025 each to S$3,000,000 divided into 120,000,000 shares of S$0.025 each. The Placement Shares represent 20% of the issued share capital of the Company as at 24 October 2002.

The Placement Shares will be issued pursuant to the general mandate obtained at the annual general meeting of the Company on 29 May 2002 which authorises the Directors of the Company pursuant to Section 161 of the Companies Act Cap 50 to allot and issue new shares not exceeding 20% of the Company's issued share capital for the time being in the case where shares are issued other than on a pro-rata basis to existing shareholders.

Based on the audited accounts of the Company for the financial year ended 31 December 2001, the consolidated net tangible assets per share of the Company, after adjusting for the Placement Shares will increase from approximately 5.16 cents to 6.17 cents. Based on the unaudited accounts for the six months ended 30 June 2002, the consolidated net tangible assets per share of the Company, after adjusting for the Placement Shares will increase from approximately 4.37 cents to 5.51 cents.

The Subscriber is not a Director or a substantial shareholder of the Company or any of their respective related parties. None of the Directors or substantial shareholders of the Company has any interest, direct or indirect, in the Private Placement.

By Order of the Board

Tjioe Ka Men
Managing Director
24 October 2002