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Imperium To Resume Full Restaurant Business

BackDec 24, 2003

The Board of Directors of Tung Lok Restaurants (2000) Ltd ("Tung Lok" or "the Company") wishes to announce that,

(i) Imperium Fine Dining & Entertainment Pte Ltd ("Imperium") a joint-venture company with Nova Leisure Pte Ltd ("Nova"), in which Tung Lok has a 50%-shareholding interest, will resume its full restaurant business in January 2004; and

(ii) Tung Lok has entered into a Deed with Engason Pte Ltd ("Engason"), Nova and Imperium on 24 December 2003 ("Deed"), in respect of a loan of up to a total aggregate amount of S$800,000.00 (the "Loan") from Engason to Imperium, Engason is connected with one of the shareholders of Nova.

Imperium, one of the largest restaurants in Singapore with a seating capacity of 650, was set up in May 2002 initially to operate as a restaurant and an entertainment establishment. Following the outbreak of the SARS epidemic which affected the restaurant businesses nationwide, Tung Lok, which has been overseeing the daily operations of Imperium, announced in June 2003 its decision to convert Imperium into a banquet-only establishment, catering largely to private dinner functions.

However, given the current positive economic forecast and the gradual recovery of the economy, Tung Lok wishes to take advantage of the expected increase in consumer spending by resuming Imperium's restaurant business. Tung Lok also sees the opportunity to review its strategy with regards to Imperium and intends to offer new Chinese dining concepts.

Hence, Engason has agreed to provide an interest-free loan to Imperium for the purpose of reinstating Imperium's regular restaurant operations. The Loan will be repaid in 12 equal monthly instalments. The first of such instalment shall be repaid on the 13th month following the disbursement of the first tranche.

In consideration of Engason agreeing to advance the Loan to Imperium, Tung Lok has, inter alia, unconditionally and irrevocably guaranteed and undertaken to pay Engason, when repayment of the Loan becomes due, all monies as may be advanced to Imperium under the Deed.

None of the Directors and as far as the Directors are aware, none of the substantial shareholders of the Company have any direct or indirect interest in the above transaction, save for their respective shareholdings in the Company.