Investor Relations

SINGAPORE, January 25, 2003 - Singapore Exchange-listed restaurant owner and operator Tung Lok Restaurants 2000 Ltd ("Tung Lok") today announced that it has clinched management contracts to operate restaurants it does not own in Singapore and Indonesia.

Tung Lok said the latest new ventures will bring to four the number of third-party restaurants managed by the Group, which is aggressively pursuing the strategy to secure more such management contracts in Singapore and overseas to augment the income from 20 restaurants in Singapore which it owns and operates in Singapore.

Tung Lok's Managing Director, Mr Andrew Tjioe, said: "Having expanded the number of restaurants owned and operated by the Group over the last two years, we are now pursuing a strategy of securing more management contracts for restaurants not owned by us."

"This strategy allows us to build an additional stream of steady income with minimal risk. By the end of the year, we hope to bring the number of such restaurants under management to eight. We will also consider franchising as the Tung Lok brand is already well established," he said.

"With Tung Lok's track record and over 20 years' of experience, we can help independent owners to manage their restaurants in areas such as manpower planning, selecting and hiring of key staff, developing menus, establishing Tung Lok Quality Standards, training programmes, and marketing and promotions. Together with helping them get preferential prices from suppliers, we will add real value and professionalism to these outlets," Mr Tjioe added.

Of the two new contracts secured, the first is for a 200-seat Chinese restaurant at the Laguna Country Club, which is owned and managed by well-known club and resort owner Mr. Peter Kwee. Previously named Pine Valley Chinese Restaurant, it is undergoing renovations and will be re-named Pine Valley when it re-opens in March, 2003.

The second is for a 250-seat outlet Ming at Kelapa Gading within the premises of the Casablanca Club located in Kelapa Gading in North Jakarta. The club is located in a private residential district developed by the Agung Podomoro Group of Indonesia and it is set to open in April, 2003.

Prior to these two contracts, Tung Lok had only two other management contracts in Jakarta - the 400-seat Tai Pan Restaurant and the 300-seat Ming at Kuningan.

"Tung Lok has received numerous requests for management contracts from restaurant owners in China, Indonesia and even India. We are being selective and would like to examine each proposal carefully before we decide who the Group can work well with to grow our management contract portfolio," Mr Tjioe said.

Last September, the Company announced that it was considering opening new restaurants in China and Indonesia as part of its corporate strategy on regionalisation.

Mr Tjioe said that he and his senior managers had visited potential locations in Beijing, Shanghai and Jakarta in considering overseas expansion. Business groups from other countries have also approached Tung Lok to consider starting operations there.

Company Background

Listed on the SGX-SESDAQ on March 2001, Tung Lok currently operates 20 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 Hunan Hot Pot and TeaHouse at China Square. For the six months ended June 30, 2002, the Group recorded a turnover of $33.34 million, up 16.9% from the same period a year ago. Information on the Group's restaurants can be found in www.tunglok.com.